This is another difficulty retargeting algorithm that has recently been used in Zcash with slight variations and after adequate experimentation.
This algorithm works by going through a fixed number of previous blocks to calculate the time they took to be generated and then readjusts the difficulty to the difficulty of the previous block by dividing the actual time span by averaging the target time.
How Blockchains Maintain Consistent Block Times (Part 2)
In this scheme, the retargeting is calculated much more rapidly, and also the recovery from a sudden increase or decrease in hash rate is quick.
This algorithm protects against multipools, which can result in rapid hash rate increases.
The network difficulty is readjusted every block or every minute depending on the implementation.
The key innovation is faster readjusting times as compared to KGW.
Zcash uses DigiShield v3.0 which uses the following formula for difficulty adjustment: (New difficulty) = (previous difficulty) x SQRT [ (150 seconds) / (last solve time) There is detailed discussion available on it at https://github.com/zcash/zcash/issues/147#issuecomment-245140908.
Why This Matters for Blockchain Technology
Understanding DigiShield is not just an academic exercise — it has real-world implications for how blockchain systems are designed, deployed, and secured. Whether you are a developer building decentralized applications, a business leader evaluating blockchain adoption, or a curious learner exploring the technology, this knowledge provides a critical foundation.
Key Points to Remember
- DigiShield This is another difficulty retargeting algorithm that has recently been used in Zcash with slight variations and after adequate experimentation.
- This algorithm works by going through a fixed number of previous blocks to calculate the time they took to be generated and then readjusts the difficulty to the difficulty of the previous block by dividing the actual time span by averaging the target time.
- In this scheme, the retargeting is calculated much more rapidly, and also the recovery from a sudden increase or decrease in hash rate is quick.
- This algorithm protects against multipools, which can result in rapid hash rate increases.
Conclusion
DigiShield represents one of the many innovative layers that make blockchain technology so powerful and transformative. As distributed systems continue to evolve, a solid understanding of these core concepts becomes increasingly valuable — not just for developers, but for anyone building, investing in, or working alongside blockchain-powered systems.
Whether you are just starting your blockchain journey or deepening existing expertise, mastering these fundamentals gives you the tools to think clearly about decentralized systems and make smarter decisions in this rapidly evolving space.