Mining
Intermediate
Updated 1/15/2025
What is
Difficulty Adjustment Algorithm (DAA)?
The mechanism that adjusts mining difficulty to maintain consistent block times. Ergo adjusts difficulty every epoch to target ~2 minute blocks.
The Difficulty Adjustment Algorithm (DAA) automatically adjusts how hard it is to mine blocks based on network hash rate changes. When more miners join, difficulty increases to maintain target block times; when miners leave, difficulty decreases. Ergo uses a sophisticated DAA that adjusts every epoch (1024 blocks) to maintain approximately 2-minute block intervals. This ensures consistent transaction throughput and predictable confirmation times regardless of how much mining power is on the network.
Key Points
- Automatically adjusts mining difficulty
- Maintains consistent ~2 minute block times
- Adjusts every epoch (1024 blocks)
- Responds to hash rate changes
- Ensures predictable confirmation times
- Prevents blocks from being too fast or slow
Use Cases
1
Understanding mining profitability dynamics
2
Predicting block confirmation times
3
Analyzing network hash rate trends
4
Comparing DAA designs across blockchains
Technical Details
Ergo's DAA calculates the average block time over the previous epoch and adjusts difficulty proportionally. If blocks were mined faster than 2 minutes on average, difficulty increases; if slower, it decreases. The algorithm smooths adjustments to prevent oscillation. This differs from Bitcoin's 2-week adjustment period, making Ergo more responsive to hash rate changes while avoiding instability.
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Frequently Asked Questions
Questions about Difficulty Adjustment Algorithm (DAA)
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How to get started with Ergo?
Start by getting a wallet (Nautilus for browser, Terminus for mobile). Back up your seed phrase securely offline. Get some ERG from an exchange (Gate.io, KuCoin) or DEX (Spectrum). Make a test transaction. Then explore: try DeFi on Spectrum, check out NFTs, or dive into the technology if you're a builder.
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What can I do with Ergo?
Ergo supports a full ecosystem: trade on Spectrum DEX, use SigmaUSD stablecoin, mix transactions with ErgoMixer, collect NFTs on SkyHarbor, mine with GPUs, lend/borrow on DuckPools, bridge to other chains via Rosen, and build dApps with ErgoScript. It's a complete platform for decentralized finance and applications.
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What is Autolykos and how does it work?
Autolykos is Ergo's memory-hard Proof-of-Work algorithm designed for GPU mining. It requires significant RAM (currently ~2.5GB), making ASIC development uneconomical. Autolykos v2 (current version) allows pool mining while maintaining ASIC resistance. The algorithm promotes decentralization by keeping mining accessible to consumer hardware.
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Is Ergo a good investment?
This is not financial advice. Ergo has strong fundamentals: fair launch (no VC dump risk), innovative technology (eUTXO, Sigma Protocols, NiPoPoWs), active development, and a cypherpunk ethos. It's a smaller market cap project with higher risk/reward than established chains. Research thoroughly, understand the technology, and never invest more than you can afford to lose.
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