I don't understand what exactly the PoS formula means in Vitalik's blog post On Stake on the Ethereum blog:
SHA256(prevhash + address + timestamp) <= 2^256 * balance / diff
- Why do you need to multiply by 2^256?
- Why do you need to divide balance by difficulty?
- Does a miner create a candidate block only per second because timestamp is the only difference for new block?
Each variable means:
prevhash: the hash of the previous block.
address: the address of the stake-miner.
timestamp: the current Unix time in second.
balance: the account balance of the stack-miner.
diff: an adjustable global difficulty parameter.