Well, we all should have come across about blockchain. But what on earth is the hash rate/power? So let’s find it out right now.
What is hash rate in cryptocurrency
Hashing power is one of the important aspects of Bitcoins and cryptocurrency. In fact, hashing power determines the speed of your computing machines. And understanding hashing power totally is quite a confusing task. So let’s try to understand this with an example,
- Assume two miners say A and B.
- Miner A is mining very fast compared to that of miner B. Then obviously the miner who is faster will have a higher hash rate.
- It will lead to the completion of the block and adding it to their series of blockchains miners.
- Now that we understand the basic concept behind hash power/rate. Let’s dig more into detail about this!
Since the hash rate comes under the blockchain. There are so many things that the hash rate is considered for. One of our main topics relies on the hash rate in cryptocurrency.
To put this in simple terms, Hash rate/power by definition means,
The speed of your computing machine which is mining thousands of blocks by solving complex mathematical problems.
What is happening behind the hash rate/power?
Computers used for mining have to complete certain tasks known as “nonce”. Nonce by definition refers to a series of numbers that miners are trying to solve.
A nonce is like a key to get the right answer. But guessing the right answer is not an easy task. It’s based on guessing like this one or that one or another one.
- Assume that you and a few others are given three keys namely key A, key B, and key C to open a door in front of them in a limited time period.
- You try the key A and the door is still locked then you try the key B and still the door is locked. Finally, you try the key C and the door is unlocked.
Yes, key C is known as the nonce. The same concept can be used in Cryptocurrency as well.
Guessing the nonce within a period of time in a heavy competition among many miners is the difficulty level here. Blockchain uses this kind of difficulty level to control blocks every 10 minutes.
And wait, also a nonce is a series of encrypted values. Which can be used only one time for verification during bitcoins transaction or anything related to this and servers only accept this particular encrypted series for one time.
So, again solving this nonce is not an easy task to do. The difficulty in solving this relies on the number of zeros required before the nonce.
Remember the door opening example using three keys. (i.e,) The miner has to guess the right nonce which actually begins with 0 and keeps increasing according to the level of difficulty.
The number of attempts made by a miner to check whether the nonce is correct or not through a computing machine is known as hash rate or hashing power.
On solving this, nonce returns the desired hash which can be adjusted whereas the rest of the content in the block is predefined.
How is the hash rate measured?
So, the hash rate is a unit measured according to hashes per second. It can be either kilo hash, mega hash, terra hash, etc. The higher the hash rate, the less competition to win among the pool.
So the conclusion is,
Hash rate keeps increasing every time when bitcoin’s difficulty level increases. And so thus the capital spent on electricity consumption, equipment needed, etc must be noted well when looking for profits in this field.
Hope you find it interesting. Do you use any bitcoin mining methods?