Litecoin is seeing an uptick in its mining difficulty, reaching a value of 26.38 M at block 2,498,134. This figure reflects an increase of 3.38% over the last 24 hours, indicating a growing challenge for miners to discover new blocks and reap the rewards that come with them.
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Mining difficulty, as its name suggests, quantifies the level of difficulty miners encounter when trying to generate new blocks in a cryptocurrency’s blockchain.
When mining, participants use powerful computers to solve complex mathematical problems; the solution, or “hash”, must be below a specific target for a new block to be created and for the miner to receive their reward in cryptocurrency.
This recent development in Litecoin mirrors a broader trend in the crypto mining landscape. Bitcoin, the original cryptocurrency, has also recently seen a surge in mining difficulty. Data from BTC.com shows that Bitcoin’s mining difficulty climbed by 2.18% to hit a record level of 52.35 trillion at block height 794,304.
Rising mining difficulty levels make the task more computationally challenging for miners, but it is also a sign of a healthy and secure network.
Increased mining difficulty suggests more participants are mining, thereby contributing to the decentralization and security of the network. This trend also helps to control the rate of new coin issuance, an important factor in managing the supply of a cryptocurrency.