The

proof-of-work Proof of work (also written as proof-of-work, an abbreviated PoW) is a form of Cryptography, cryptographic proof (truth), proof in which one party (the ''prover'') proves to others (the ''verifiers'') that a certain amount of a specific computatio ...

distributed computing Distributed computing is a field of computer science that studies distributed systems, defined as computer systems whose inter-communicating components are located on different networked computers. The components of a distributed system commu ...

schemes, including

Bitcoin Bitcoin (abbreviation: BTC; Currency symbol, sign: ₿) is the first Decentralized application, decentralized cryptocurrency. Based on a free-market ideology, bitcoin was invented in 2008 when an unknown entity published a white paper under ...

, frequently use

cryptographic hash A cryptographic hash function (CHF) is a hash algorithm (a map of an arbitrary binary string to a binary string with a fixed size of n bits) that has special properties desirable for a cryptographic application: * the probability of a particu ...

es as a proof-of-work algorithm. Hashrate is a measure of the total computational power of all participating nodes expressed in units of hash calculations per second. The hash/second units are small, so usually multiples are used, for large networks the preferred unit is terahash (1

trillion ''Trillion'' is a number with two distinct definitions: *1,000,000,000,000, i.e. one million 1,000,000, million, or (ten to the twelfth Exponentiation, power), as defined on the long and short scales, short scale. This is now the meaning in bot ...

hashes), for example, in 2023 the Bitcoin hashrate was about 300,000,000 terahashes per second (that is 300 exahashes or

3 \cdot ^

hash calculations every second).

Impact on network security

A higher hashrate signifies a stronger and more secure blockchain network. Increased computational power dedicated to mining operations acts as a defense mechanism, making it more challenging for malicious entities to disrupt network operations. It serves as a barrier against potential attacks, particularly the significant concern of a 51% attack.

Mining difficulty

Mining difficulty, intrinsically connected to hashrate, indicates the challenge miners face in producing a hash lower than the target hash. It is purposefully designed to adjust periodically, ensuring a consistent addition of blocks to the blockchain.

Hashrate and miner participation

An increase in the miner count results in higher hashrate. This surge is often driven by the attractiveness of potential returns due to the escalated demand for cryptocurrencies, such as

Ethereum Ethereum is a decentralized blockchain with smart contract functionality. Ether (abbreviation: ETH) is the native cryptocurrency of the platform. Among cryptocurrencies, ether is second only to bitcoin in market capitalization. It is open-s ...

References

Sources

* * Blockchains Benchmarks (computing) {{cryptocurrency-stub