Is it literally counting number of bits? Or is it "smaller than X" in binary (same as BTC difficulty)? The BTC solution allows for finer granularity.
Same algo as BTC.
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(Which is also counting the number of leading 0s in binary.)
That's not how Bitcoin difficulty works. It's not just counting leading 0 (that's just a simplification we use when explaining it to people), because then difficulty adjustment would always jump 2x...
