![]() ![]() Hash rates over timeĪ better way to understand all this is by taking a look at the history of Bitcoin’s hash rate. Different cryptocurrencies don’t have the same amount of hash power. One thing to note is that hash rates vary depending on the cryptocurrency and what machine or equipment was used to mine it. Metric terms like kilo, mega, giga, tera, peta, and exa are used to distinguish the degree of the hash rate.ġ kilo hash per second (1 Kh/s) = one thousand hashes per second (1,000 h/s)ġ mega hash per second (1 Mh/s) = one million hashes per second (1,000,000 h/s)ġ giga hash per second (1 Gh/s) = one billion hashes per second (1,000,000,000 h/s)ġ tera hash per second (1 Th/s) = one trillion hashes per second (1,000,000,000,000 h/s)ġ peta hash per second (1 Ph/s) = one quadrillion hashes per second (1,000,000,000,000,000 h/s)ġ exa hash per second (1 Eh/s) = one quintillion hashes per second (1,000,000,000,000,000,000 h/s) This is used to gauge the speed of the machine used for Bitcoin mining. When computing hash rates, the unit h/s (hashes per second) is used. ![]() This increase in the capacity of the network makes it more efficient since more people can use the network for their transactions. A higher hash rate means that more miners are able to help verify transactions, meaning that the network’s security is in a healthy state.Ī high hash rate also means that miners are capable of processing more transactions at a faster rate. Let’s talk about the first bit, security. With all the technical details out of the way, let’s answer the question: “what makes a good hash rate?” Generally speaking, a high hash rate is preferred by miners as this increases the security and capacity of the network. A high hash rate means that more machines are willing to validate Bitcoin transactions and vice versa. Hash rate also refers to the combined computing power of all network participants in the Bitcoin blockchain. “ Hash rate” is the number of hashes produced per second and is used to measure the computing power of mining rigs. These mining rigs can try 1 billion hash combinations per second (gigahash/second) up to hundreds of trillions per second (terahash/second). To speed up the mining process, miners use powerful computers to brute force every possible combination. It would take a long time for a laptop or regular desktop computer to arrive at the correct target hash. As you can imagine, the possible combinations are almost unlimited since the target hash is composed of 64 digits and is randomly generated. What Bitcoin miners actually do is try to be the first to “guess” the correct target hash. This process of decrypting and validating unique hashes is also called “ Bitcoin mining.”Ĭontrary to popular belief, Bitcoin mining doesn’t involve complex computations. Decrypting and validating hashes is resource intensive and that’s why the network participants are rewarded with Bitcoin if they are the first to complete the process. This unique hash, also called a target hash, needs to be validated and added to the public ledger by other network participants. For every transaction in the Bitcoin blockchain, the network randomly assigns it a unique hash that may look something like:Ġ00000000019d6689c085ae165831e934ff763ae46a2a6c172b3f1b60a8ce26f Defining the hash rate and how it worksĪ hash is data encrypted with a 64-digit hexadecimal number. ![]() If you’ve been doing your own research on Bitcoin (BTC), you might have come across the term “ hash rate.” It’s more commonly used when discussing Bitcoin mining, but has become a need-to-know metric for many involved in the market. ![]()
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