Goldcoin Golden River Algorithm
Golden River Algorithm
If cryptocurrency miners whose computers solve math problems get rewarded with new coins, what’s stopping one miner from simply finding all of the solutions first? After all, many people wonder, why wouldn’t some billionaire just purchase a super-fast computer so that they could continually beat everyone else to the punch?
The solution lies in difficulty algorithms. To control the rate at which new blockchain blocks, and therefore currency coins, are minted, crypto developers ensure that each problem is hard to solve.
Even the fastest modern computers still operate at predictable rates. For instance, your laptop or phone runs at a certain number of GHz or MHz, and a supercomputer can perform a specific number of basic floating-point math operations per second, or FLOPS. Given that these machines are rate-limited, it’s possible to intelligently estimate how long it will take each one to solve each block. From there, the network determines how many machines are working on the problem and corrects the difficulty variables as needed.