Difficulty
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Difficulty (network difficulty) is a number that shows how hard it is to find a new block in a proof-of-work blockchain. The higher it is, the more hashes, on average, the whole network has to try before someone finds a valid block.
Why it changes
Difficulty adjusts automatically to keep the block time close to its target. When more hashrate joins the network, blocks start coming faster and difficulty goes up; when miners leave, it goes down. Bitcoin recalculates difficulty every 2,016 blocks (about two weeks) for a 10-minute block time; many altcoins adjust it every block.
What it means for miners
With the same hashrate, higher difficulty means fewer coins per day. That's why mining profitability falls when many new miners join a coin, even if its price doesn't change.
Network difficulty is not the same as share difficulty: the pool sets share difficulty for each miner to measure its work. See Share difficulty.
