The Algorithm

The proof of work mechanism is controlled by an algorithm which modulates the difficulty of the puzzle so that no matter how much computing power or energy is applied to the solution, the block discovery rate is kept as close to 10 minutes as possible. This timeframe is important as it provides enough time between blocks to minimise the emergence of competing blocks (and the resultant orphans), while still allowing for a significant number of competing nodes to participate in the network. Many competing blockchain networks have been created which have reduced the time causing a knock-on effect where miners end up losing a much higher number of blocks in orphan races. Some of these competing blockchain networks have even had to develop methods of compensating nodes for their losses to encourage them to continue participating in their system.