In Ethereum How Is the Block Difficulty Determined in Ethereum

question 41

Multiple Choice

In Ethereum how is the block difficulty determined in Ethereum?

• A) The Block Difficulty increases when the time between mined blocks is below 10 seconds, while it decreases when the time is above 20 seconds.
• B) The Block Difficulty is determined by the Ethereum Committee every fortnight to reflect the average amount of transaction and it cannot be influenced by the network itself.
• C) The Block Difficulty increases when the time between mined blocks is below 20 seconds, while it decreases when the tie is above 60 seconds.

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Definitions:

Depreciation

Depreciation is an accounting method of allocating the cost of a tangible or physical asset over its useful life, representing how much of the asset's value has been used up.

Interest Rate

The cost of borrowing money, typically expressed as an annual percentage of the principal loan amount.

Marginal Efficiency

The expected profitability of investing in additional units of capital, influencing a firm's decision to invest based on future returns.

Net Investment

The total spending on new capital minus the depreciation on existing capital, indicating the growth of a company's or nation's capital stock.