Author: CryptAxe 2017-11-02 23:39:41
Published on: 2017-11-02T23:39:41+00:00
On November 13, 2017, Bitcoin cash implemented a new difficulty algorithm and Bitcoin may also hard fork to use a similar algorithm if necessary. The new algorithm used by Bitcoin cash is considered one of the best because it followed the "simplest is best" route. Its averaging window is considered too long at N=144, but it does not use max(timestamp) - min(timestamp) in the denominator like others do. Instead, it uses next_D = sum (past 144 D's) * T / sum(past 144 solvetimes). Bitcoin can use this as a clear, simple, and tested path if it suddenly needs to hard fork due to having 20x delays for the next 2000 blocks, taking it a year to get unstuck.The new algorithm also uses a median of three for the beginning and end of the window to help alleviate bad timestamp problems. Although it helps a little, it will also slow its response by one block. It also has 2x and 1/2 limits on the adjustment per block, which is more than it will ever need. Scott Roberts recommends that Bitcoin consider using the new algorithm with N=50 instead of 144.Degnr8's D622 difficulty algorithm is another contender and better than the new algorithm devised by Bitcoin cash. It is the only real improvement in difficulty algorithms since the rolling average. It gives a linearly higher weight to the more recent timestamps. However, there is too much noise in difficulty algorithms to find the good ones.Roberts believes that any modification to the strict mathematical weighted average of the new algorithm will reduce its effectiveness. It does not oscillate anymore than regular algos and rises faster and drops faster when needed.
Updated on: 2023-06-12T21:59:42.660450+00:00