What is Retargeting?

Retargeting is an algorithm also known as a complexity adjustment algorithm. It is mainly utilized on Bitcoin and other, similar proof-of-work (PoW) blockchains.

Retargeting is created by dividing the hash target of the first block by the hash target of the current block. This continuing retargeting on proof-of-work blockchains indicates that when Bitcoin was in 2009, way less computing power was required by miners then than nowadays.

In order to find the hash value of the block and verify the transaction, miners are obligated to utilize the SHA-256 hashing procedure until the value is less than the target. If it is not, they must continue to adjust the nonce, a number that may only be utilized once, and continue the SHA-256 hashing function until it becomes less.

Nevertheless, retargeting makes sure that the time of producing a block (10 minutes) is kept the same regardless of the increasing complexity of the mathematical calculations. This predefined target is arranged approximately every 2016 block, every two weeks, and is referred to as retargeting.

To specify, every block is generated by a miner tackling a complicated series of calculations or puzzles on PoW blockchains. Nevertheless, the problems get increasingly difficult to solve with each block. Miners solve the case by altering a nonce to generate a hash value that is less than the hash target, which is a specified criterion of each block.

Every miner battles with the others to see who can complete the challenge earliest. The very first person to overcome it will earn a Bitcoin reward, and once the majority of miners agree, the block will be confirmed and stored on the blockchain.