Bitcoin basics: What is the difficulty target and how does it adjust itself?

How bitcoin mining works: • How Bitcoin mining act...

[@ronfuse6993]

best intro to a youtube video in history. "Welcome to another episode of whatever this is called" subbed

[@emptyplanet]

😁

[@victoreric4557]

I wanted to close the video but heard that, I did not 😅

[@adamdunlaptv]

The use of the time stamp in the algorithm. It’s pretty ingenious. Bitcoin has its own version of time

[@johnching9027]

Thanks man. You have made difficulty easier to understand. Much appreciated.

[@rudramanipandey]

Please make more videos. You will be earning a lot and we will be learning a lot. Thanks man!

[@JamesMyddelton]

Much appreciated - you must keep making these tutorials.

[@poplop1346]

The best explaination I have ever seen thx 🙏

[@TheSway1968]

Great explanation! Much appreciated.

[@kyleelsmore1947]

Your channel is great. Like the format and style.

[@fahadbakhsh17]

love the way u explained it thanks brother i was really looking for it..

[@ssoltani22]

outstanding explanation, thnx

[@nadeemajl]

Hi Keifer, Yet another great video, you make complex topics easy to understand. Looking forward for more, keep them coming. Regards, Nadeem

[@KeiferKif]

Thanks Nadeem! I'll keep them coming

[@amitvishwakarma642]

You've got a new fan from INDIA....Thank you so much for making life easier !!!

[@shashwatthakur3774]

Buddy are u mining in india i am from india too lets make a mining pool

[@vikram237]

excellent ! very lucid and clear ... thanks

[@KeiferKif]

Thank you my friend!

[@watstrappening3653]

More videos please really learning from you subscribed💯💯💯

[@dylandowdy3687]

Thanks for making the video! Could you explain in another video how the miners earn and receive their rewards? I’m curious as to who pays the miners and where does that currency come from. Thanks again, your the man Keifer!

[@kennedyaraujjo]

this guy is so funny without trying

[@engineeringnerds16]

At 6.12 when it takes less time the fraction is less than 1and difficulty target reduces as per formula and that in creases difficulty.... For example if i ask you to pick a card below king in pack of cards it has higher probability than picking card lower than 10... Similarly probability will decrease as I go lower and it becomes more difficult.. Same is the case with sha256 if the difficulty target goes down the probability of finding hash rate lower than that number goes down means difficulty level increases...

[@freshstolencontents3600]

Hello do you know when does block hash is lower than target hash

[@emlortnoctonod8401]

The signature of the new Block must be less than the recently added block. Could you explain this please?

[@riccardocatania9406]

Hi Keifer, great video, ratio is inverted by the way

[@mil3761]

Thank for your video. I've been trying to understand the details of the Difficulty Target aspect but I just can't get my head around it. If the calculation for the Difficulty Target is baked into the Bitcoin algorithm then what ensures that everyone is using the same Bitcoin algorithm? Does the algorithm get hashed someway into the blockchain so that it cannot be changed unless a fork is created? If not, then what is stopping a very large mining organisation from using a different algorithm with a different calculation on the difficulty target? That's where I'm struggling to connect the dots with my understanding.

[@freshstolencontents3600]

Do you get the answer already? And do you know when is it determined that block hash is lower than target hash

[@mbharatm]

Every Bitcoin node will include this logic in compiled form. What stops someone from modifying the algorithm is that any block produced with a lower difficulty target ( than is calculated by the network) will not be accepted by the network and the block will be rejected. Since the block had been built using a huge amount of processing and cost, this would be against the economic interest of the mining organization

[@kaioh33]

you definitely need more people subscribes for your content

[@hackerclient7055]

I know how to calculate bits into target but...who the bits is calculated? I need to know

[@muskansharma803]

the difficulty set by the BitCoin network is 63, with the last 2016 blocks mined in 10 days. What will be the next computed value of the difficulty would u please solve this

[@engineeringnerds16]

I think your saying exactly reverse.... When the time to mine 2016 is lower.... It will reduce the difficulty target and when the first miner finds hash rate lower than difficulty target he will get the reward... Plz correct if i am wrong but that's how sha256 works i guess

[@russmiliotto2757]

Keifer, I've watched a few of your videos and appreciate them. But One question I've always had (or more than one) is this: A. Where do these bitcoins come from when they are being mined? If I mine and find one, am I taking it from someone else? B. When bitcoins are mined, and found would I only be finding a fraction of the coin and do the fractions contain the same (6) elements of the cryptographic data? Russ

[@killerrdi]

Hey Russ I am just preparing for my University Blockchain exam and i think i can help you out! If you are a miner, you constantly try to find a block candidate with a hash value below the set threshold. If you are one lucky miner and find a block that does, you are adding on top of the block a transaction, a so called generation transaction (Coinbase TRX). Only the miner that finds a valid block is allowed to this. The current reward is 12.5 Bitcoins. This Reward for a miner is divided by 2 every 4 years. The special thing about this transaction is the existence of only an output reference. Anyhow, this feels intuitive, since the miner is creating the bitcoins "out of nowhere" and therefore they do not have any "history". i guess you found out the answer already, since you asked this question a year ago, but i though it will be a good exercise for me!

[@GreenBoiler]

What if the protocol was changed to find blocks every 1 minute (vs 10) and lower the reward fee from 12.5 to 1.25 (1/10th)? Would this allow for more throughput? And adjust the diff retargeting to daily/weekly?

[@muskymetal3277]

It would, but it'd likely cause the block detach rate to skyrocket. A reasonable block time is needed to accommodate in potential latency with block propagation.

[@shaddow85]

great content you should have a deep dig into the Kadena network

[@jokes108]

So a quantum computer could break this time period? Solve all the blocks in a short period af time?

[@CrypTsoo]

That s what I wonna see

[@suballica]

Dude , You are the most undervalued Cryptuber out there at the moment , I wish you were a coin so i could invest on you right now :-) . Its so weird that clueless so called Coin Shillers have so much following than you . I guess reason is people don't want to understand the tech behind it as its too much effort for them . Its easer listening to speculation from entertaining youtubers. Tech Question: Why the heck there can be only 21 million max supply for bitcoin? Where in the programming it says that?how does it work in the blockchain ? Thanks , subscribed

[@timt.3627]

Hi Keifer, I really loved you DASH and Monero video. What is your take on Tezos vs. Cardano. It would be great if you could go on a deep dive comparison here. Also from a technical standpoint. I am especially interested in the advantages of using Haskell for Cardano vs. OCamel for Tezos. Thanks Tim

[@KeiferKif]

sounds interesting, I'll look into those.

[@rishabhgarg9217]

hey, can you provide the link of those videos you have mentioned (Dash and Monero video) ?

[@dgholt1980]

Good to watch at X2 speed

[@andirayo]

Good start, but the only question I had when coming here was not answered: How (exactly!) is determined how much time has passed. Afaik, miners do not synchronize their clocks to participate in the network, so due to clock skew different miners have different clock times, leading to different results when calculating time passed, leading to different difficulty adjustments... I assume there is simple solution to this problem, but it was not answered in this video and I wouldn't know why not.

[@KeiferKif]

It's not actually based on time, it happens every 2016 blocks!

[@andirayo]

@@KeiferKif Of course the adjustment of difficulty happens every 2016 blocks. That is obvious. What is not obvious: How does the algorithm know if the average block-time of the last 2016 blocks was too fast / too short (i.e. less then 10 minutes) or too slow / too long (i.e. more than 10 minutes). Somehow, a measurement of time for the passed time for the last 2016 blocks has to be introduced into the calculation. Since time is not absolute and the clocks nodes do not have to be synchronized, I think this is a very interesting (and important) question to determine how the difficulty target adjusts "itself". I looked it up: Blocks have a self-reported timestamp by the miner which can be spoofed. However, there are timestamp protection rules that have been introduce to prevent miners from being incentivized to mis-report the timestamp: blog.bitmex.com/bitcoins-block-timestamp-protection-rules/

[@user-yy4tm5zn5b]

as a Vietnamese, I wonder why your background has Ho Chi Minh's picture.

[@abhishekkumarsingh4375]

Hi Keifer, Liked your video. Would be helpful if you could explain how the miners are rewarded? Who rewards them? Also, as far i understand miners look for a key which is smaller than a target value which in turn makes the key for a new block in block chain, but in the process where is the bitcoin involved? Does the bitcoin network own the ungenerated bitcoin and rewards it to the miner? That's lot of question, but not my fault ,you made me curious. Thanks and keep making WHATEVER :D

[@KeiferKif]

in every block there's a special transaction that create more bitcoin and gives it to the miner. Also they collect transaction fees. hope that makes sense!

[@bmebri1]

Have a wonderful...rest of your...day?

[@SFtalks]

good explanation but nothing technical, not even the ellaboaration of the formula you wrote. May be you wrote it in the end for that prupose

[@hasanmahmud977]

Hello Millionaire, 🙂

[@ralkumar8254]

Welcome to whatever this is called?? 😂😂😂😂