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Author: Admin | 2025-04-28
Then generate a hash. If the generated hash is below the network target, then the block can be added to the chain and if not so, then the miners will keep on trying different nonce until they satisfy the condition or someone else finds the correct hash. Let’s use an example to break down this concept for simple understanding.Example - Consider a rolling dice with 6 sides. If the network sets difficulty to 4, then any number rolled below 4 will be able to add block to the chain, but if a person rolls 5 or 6 then he must try again until he rolls a number equal to or below 4. If the network wants to increase the difficulty level, it will reduce the target value from 4 to 3 and so on. Bitcoin blockchain maintains such difficulty level that it adds 1 block every 10 minutes. So, when there are too many miners acting in the system, the difficulty level increases accordingly. The miner who solves this hashed mathematical puzzle first is rewarded with a certain number of bitcoin tokens as an incentive for incurring all the expense of verifying and adding data to the blockchain. This process of adding a block to the chain is called Proof of Work (PoW).This hash function is the reason behind the immutability of the blockchain network. Each block has its unique hash which is linked to next block and this forms a linked chain. Any changes made to data in any previous block will change hash for that block and since hash of previous block is an input to the next block, hash for this “next” block will also change. Such chain of events will continue till we reach the latest block. But as it is extremely difficult and costly to solve for the block’s hash, requirement to find so many hashes that too before the creation of a new block to the blockchain is practically next to impossible.
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