Quote from: BitCoinDream on August 29, 2014, 10:30:00 PM

Quote from: odolvlobo on August 29, 2014, 08:02:23 PM

Quote from: Coinhunter32 on August 29, 2014, 07:32:32 PM

Also diff. rises each day

The difficulty rises every 10 to 14 days, not every day.

Can someone please explain me in simple terms, that in a distributed system like bitcoin network, how the need to increase difficulty is programmaticaly determined ?

The difficulty is recalculated every 2016 blocks based on the amount of time it took to produce the previous 2016 blocks, according to the timestamps.

D_new = D_old x 14 days / actual time for the last 2016 blocks

Since the actual time for the last 2016 blocks is agreed on by everyone, everyone computes the same difficulty value.