What is hash rate

Hash rate is a key term in the cryptocurrency industry that is often questioned by newcomers and even more experienced members of the crypto community. It plays a central role in the mining process, ensuring the security and stability of the blockchain. Understanding hash rate helps to gain a deeper understanding of the mechanisms of functioning and the importance of cryptocurrencies in the modern financial world.

Definition and meaning

Hash rate describes the processing power used to process transactions and mine new blocks in a blockchain. It is the number of hash operations performed per second. It is measured in units ranging from kiloHash/sec to exaHash/sec, reflecting the wide range of power of mining equipment. A high hash rate indicates a network's high processing power and, as a result, a high degree of protection against attacks and double-spending attempts.

Importance for blockchain security

Blockchain security is directly related to hash rate. The higher the hash rate, the more difficult it is for potential attackers to launch a 51% attack that would allow them to control the majority of the network's capacity and thus influence transaction verification. A consistently high hash rate is an indicator of the health and reliability of the network, and also serves as proof of trust on the part of miners.

How hash rate is calculated

Hash rate is calculated based on the number of hash functions performed over a certain period of time. This figure can vary depending on the efficiency and power of the mining equipment. Miners are constantly competing in the speed of data processing, as successful mining of a block and obtaining a reward depend on the speed of cryptographic tasks.

The measurement of hashing speed is done through H/s, which refers to the number of hash operations performed per second. This varies significantly between different cryptocurrencies, so specific units such as kilo hash (KH/s), mega hash (MH/s) and others are used to more accurately represent the capacity of the mining equipment or network.

Unit of measurement	attachment	Number of zeros	Description
kH/s	Kilo	3 (thousand)	Thousands of hashes per second
MH/s	Mega	6 (million)	Millions of hashes per second
GH/s	Giga	9 (billion)	Billions of hashes per second
TH/s	Tera	12 (trillion)	Trillions of hashes per second
PH/s	Peta	15 (quadrillion)	Quadrillions of hashes per second
EH/s	Aixa	18 (quintillion)	Quintillions of hashes per second.
ZH/s	Zeta	21 (sextillion)	Sextillions of hashes per second

This table helps to quickly assess the scale of computing power used in mining and supporting the operation of the blockchain networks of various cryptocurrencies.

Various aspects of hash rate

What is hash rate in mining

Hashrate in mining is a measure of the processing power of the mining equipment. It is the number of hash functions that a mining device can perform in one second. Hash rate directly affects the chances of a miner to successfully mine a new block and get rewarded for it. Mining devices with a high hash rate are more efficient, but tend to consume more power. Therefore, miners must balance the power of their equipment with the cost of electricity.

What is bitcoin hashrate

Bitcoin hash rate refers to the total processing power used to process transactions and mine new blocks in the Bitcoin blockchain. This metric is critical because it is directly related to the security of the Bitcoin network. A high hash rate means that the network is protected from various types of attacks, including the famous 51% attack, in which an attacker could potentially control the majority of the network's power. Bitcoin hash rate is measured in hashes per second (H/s), with modern values reaching the level of exahashes per second (EH/s).

Progress in Bitcoin's mining power can be tracked through important milestones in its hashrate growth, each indicating significant technological breakthroughs and increased miner participation:

• 1 TeraHash/sec (TH/s) in 2011: The initial phase when mining was still possible using home computers.

• 1,000 TeraChes/sec (TH/s) in 2013: Notable growth, reflecting increased interest in mining and a shift to more specialised hardware.

• 1 Million TeraChes/sec (1,000,000 TH/s) in 2016: Reaching this figure highlights the scaling of mining operations and the beginning of the ASIC miner era.

• 10 Million TeraHash/sec (10,000,000 TH/s) in 2017: Exponential hashrate growth demonstrates an increase in the number of miners and equipment efficiency.

• 60 Million TeraHash/s (60,000,000,000 TH/s) in 2019: A huge leap in computing power, reflecting continued technological development.

• 100 Million TeraChes/sec (100,000,000,000 TH/s) in 2020: Reaching this milestone indicates the steady growth and optimisation of the mining process.

• 400 Million TeraHash/s (400,000,000,000 TH/s) in 2023: This milestone highlights the incredible increase in computing power of the Bitcoin network, indicating its maturity and stability.

By November 2023, Bitcoin's hash rate has reached approximately 460 Million TeraHash/s (460,000,000,000 TH/s), demonstrating the significant computational resources invested in ensuring its security and functioning at a high level. These figures reflect the tremendous evolution of the mining industry and confirm the continued growth of interest in Bitcoin as the leading cryptocurrency.

What is the hash rate of a video card

A video card's hash rate is a measure of the processing power of a video card (GPU) in the context of cryptocurrency mining. Video cards, due to their architecture, are particularly well suited for performing cryptographic hash functions, making them a popular choice among miners. A video card's hash rate is measured in mega hashes per second (MH/s) or gigahashes per second (GH/s) and can vary depending on the video card model, its settings, and its operating temperature.

What is network hash rate

The network hash rate reflects the total processing power of all the mining devices connected to the blockchain. It is an important indicator of the health and security of a cryptocurrency network. A high network hash rate indicates that a large number of miners are contributing to processing transactions and keeping the blockchain running, making the network more secure from attacks and manipulation attempts. For each cryptocurrency, the network hash rate will be different and will change over time depending on the number and power of connected mining devices.

Impact on mining

• Mining complexity: As the hash rate of the network increases, the complexity of mining increases, which is a self-regulatory mechanism to keep the time to create a new block constant.

• Block Rewards: As the overall hash rate increases, the likelihood that your hardware will be the first to solve a problem decreases. This affects the frequency of rewards, making mining less predictable for individual participants.

Factors affecting hash rate

• Technological progress: Improvements in mining equipment have a direct impact on hash rate increase.

• Cryptocurrency price: The high value of the currency can attract more miners, which favours hash rate growth.

• Electricity: The cost and availability of electricity are critical factors for mining, as high power requires significant electricity costs.

Understanding hash rate opens the door to the field of cryptocurrencies, allowing for a deeper understanding of the principles of blockchain operation and security. This metric is important not only for miners, but also for all participants in the cryptoecosystem, as it is directly related to the reliability, efficiency and stability of cryptocurrencies.