What is hashrate?

The crypto industry is developing rapidly, bringing neologisms to the vocabulary of a modern person that were previously only familiar to experienced miners. Today we will deal with the concept of “hash rate”, one of the key performance indicators of cryptocurrency mining equipment.

What is the point?

Hashrate (from the English hashrate – “confusion”, “speed”) is the total computing power of the equipment used in the mining process. It is also called hash power and is denoted by the formula H/s.

In other words, a hash is the result of encrypting information as a set of characters of a certain length. At the same time, different networks use different encryption algorithms, so the hash on them does not match.

The transformation of information of any volume into a set of characters occurs at great speed and it is impossible to stop the process. This is what makes the entire blockchain efficient.

It is worth changing at least one character in the source data, your set in the output will be different. This is the uniqueness and uniqueness of the hash.

The hashrate shows the number of combinations that a video card or a miner can perform in one second. Currently used units such as hash/s (H/s), kilohash/s (KH/s), megahash/s (MH/s), gigahash/s (GH/s), terahash/s (TH/s), petahesh /s (PH/s), exahesh/s (EH/s). Each subsequent is equal to 1,000 previous.

Security First

A high hash rate means that more resources are devoted to transaction processing on the blockchain. This makes the network resistant to attacks, as an attacker will need to spend a lot of money and effort to outbid other mining companies and gain control of 51% of the votes.

Therefore, the higher the hashrate, the more difficult it is for a network fraudster to obtain the required hash power and the more difficult it is to carry out an attack.

In this regard, competition in the production of equipment is increasing: companies are launching new, more advanced and expensive devices with a high hash rate. Miners are also looking to upgrade devices to increase profits and network difficulty.

On the other hand, an increase in the hash rate leads to side effects: an increase in power consumption and heat transfer. As a result, not only does the electricity bill skyrocket, but so does the need for a better cooling system.

check before you buy

The hashrate depends on several key parameters, and one of them is the cryptocurrency mining algorithm. Therefore, a series of devices offer great performance in networks with the SHA algorithm (Bitcoin, Peercoin, Namecoin, etc.), but this efficiency will be much lower in the network with the Scrypt algorithm (Litecoin, Dogecoin, Gridcoin, etc. .). ).

Much depends on the specifications of the equipment itself. Therefore, it is important to know the characteristics of the device before purchasing it.

The growing popularity of cryptocurrency itself should not be overlooked. More and more miners are adding computing power to the network, thus increasing their hash rate and consequently the complexity of mining.