If you are fresh to the world of cryptocurrencies, I guess you would have heard this number of times that Bitcoin’s hash rate, also referred to spil hash power, has enhanced or come down. Does the term make you wonder what it actually means?
I actually used to wonder ter my initial days spil to what Bitcoin’s hash rate/power actually means. And eventually, after learning a loterijlot of stuff about Bitcoin, I wasgoed able to understand the reference.
Hash rate or hash power is something very critical and integral to Bitcoin’s network for a number reasons, that I will explain further te this article.
But before that, it is very significant that one understands what this actually means because by doing so one will be able to naturally understand why this hash rate/power matters so much.
Note: Hash rate/ hash power is used te every cryptocurrency that is proof of work but for this example, I am using Bitcoin because most of us naturally connect to this cryptocurrency.
What Is Hash Rate Or Hash Power?
Hash Rate, also Hash Power, is the measuring unit that measures how much power Bitcoin network is consuming to be continuously functional. By continuously functional I mean how much hash power is it consuming to generate/find blocks at the normal mean time of Ten minutes.
If you recall, ter my previous article What is a Bitcoin hash I explained scrupulously that Bitcoin network consumes a loterijlot of energy because it has to solve mathematical intensive computations regularly to find the blocks.
Thesis computations for finding the blocks are basically mathematical puzzles that a miner cannot just guess without a lotsbestemming of computation.
To successfully mine a block, a miner needs to hash the block’s header te such a way that it is less than or equal to the “target.”
The target, at the time of writing this article, is that the SHA-256 hash of a block’s header voorwaarde be a 256-bit alphanumeric string, and voorwaarde begin with Legitimate zeros. The target switches spil the difficulty switch every 2016 blocks.
And the miners arrive at this particular hash (or target) by varying a puny portion of the block’s headers, which is called a “nonce.” A nonce always starts with “0” and is incremented every time for obtaining the required hash (or target).
Since the varying of the nonce is succesnummer and miss, the chances of getting this particular hash (or target), which starts with thesis many zeros, is very low. Therefore, many attempts vereiste be made by a miner by varying the nonce.
And this number of attempts made vanaf 2nd is called hash rate or hash power. And this hash power or guessing attempts are made by miners who mine the Bitcoin blocks by a process called Bitcoin mining.
To understand more about hash power see this brief movie on hash power or hash rate which ideally explains it.
How Is The Hash Rate Measured &, its Unit?
Hash rate, spil I said, is a unit measured ter hashes vanaf 2nd or [h/s] and here are some usual denominations used to refer it.
Hash rate denominations
- 1 kH/s is 1,000 (one thousand) hashes vanaf 2nd
- 1 MH/s is 1,000,000 (one million) hashes vanaf 2nd.
- 1 GH/s is 1,000,000,000 (one billion) hashes vanaf 2nd.
- 1 TH/s is 1,000,000,000,000 (one trillion) hashes vanaf 2nd.
- 1 PH/s is 1,000,000,000,000,000 (one quadrillion) hashes vanaf 2nd.
- 1 EH/s is 1,000,000,000,000,000,000 (one quintillion) hashes vanaf 2nd.
Comman Hash rate Conversions
- 1 MH/s = 1,000 kH/s
- 1 GH/s = 1,000 MH/s = 1,000,000 kH/s
- 1 TH/s = 1,000 GH/s = 1,000,000 MH/s = 1,000,000,000 kH/s
- and so forward
Bitcoin Network’s Hash Rate &, Distribution Spil Of Now?
This is the Bitcoin’s hash rate distribution.
Bitcoin network’s hash rate now is 9.9 TH/s and is only growing spil the more miners are joining ter so more difficulty is going up.
Hash Rate, Miner’s Prize And Difficulty
Hash rate, miner’s prize, and difficulty are interdependent on each other te various ways. Whenever Bitcoin network’s difficulty goes up more hash rate is required to mine/find the blocks and spil result miners earn the block prize of 12.Five BTC plus the transaction fees.
Interestingly, the Bitcoin network’s difficulty goes up because of more miners joining the network and thus the hash power needs to be enlargened (i.e. more computational guesses needs to be made vanaf 2nd to find the solution).
This interesting correlation is enforced te the Bitcoin protocol itself so that the average block time remains Ten minutes.
After reading this, some of you would want to mine bitcoins by providing hash power to the Bitcoin network but that is a very costly and energy-intensive affair which everyone cannot do. It requires you to make expensive hardware investments, pay for gigantic electro-stimulation bills, and requests that you have a good amount of laptop skill.
And until you are ready to become a miner, keep working hard ter your current profession, HODL Bitcoin and stay tuned to CoinSutra to keep learning more about the Bitcoin revolution.
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