If you have started to inform yourself about cryptocurrencies you have recently read or heard about the hashrate in Bitcoin, which is also known as hashpower or power hash. If you are wondering what it means, here we will try to clarity and response so that you have the knowledge about hashrate and hashpower, so that you use it correctly when investing or working within the sector.
HASHRATE = POWERHASH = HASHPOWER
The hashrate or hashpower is an important and critical part of the Bitcoin network, here we will talk in greater depth about the subject.
The meaning of hash rate or hash power
The hash rate or hashpower let you measure the energy and computing power that you are consuming in the Bitcoin network. This process basically guesses a string of characters composed of numbers and letters (hash) until it finally hits the correct one. Each block of Bitcoin has a hash in its header of type SHA-256, which implies that it is 256 bits, 64 characters. Each 2016 blocks the difficulty varies.
To reach that particular hash, the miner must vary a small one from the block of his header, which is called “nonce“. This always starts with zero and is incremented each time until the required hash is obtained.
Because the nonce is varied to achieve the objective, the procedure is unpredictable, making the odds of the miner quite low.
How you can calculate its units
We have already seen how the hashrate is a unit of measure that counts the amount of hashes per seconds (h / s), but now it’s time to see which are the most commonly used names to refer to it.
Denominations for the hashrate
1 KH / s (kilo hash) is 1,000 hashes per seconds.
1 MH / s (mega hash) is 1,000,000 hashes per second.
1 GH / s (giga hash) is 1,000,000,000 hashes per second.
1 TH / s (tera hash) is 1,000,000,000,000 hashes per second.
1 PH / s (peta hash) is 1,000,000,000,000,000 hashes per second.
1 EH / s (hash) is 1,000,000,000,000,000,000 hashes per second.
The most used conversions:
1 MH / s = 1,000 KH / s
1 GH / s = 1,000 MH / s = 1,000,000 KH / s
1 TH / s = 1,000 GH / s = 1,000,000 MH / s = 1,000,000,000 KH / s
Now let’s see how the power of hash is distributed among the different mining pools, which are groups of people who come together to use all their computing power and in this way have more chances to validate a block and get rewards. Of course, they must also distribute among all the obtained.
The rewards, the hashrate and the difficulty in mining
The reward that the miners receive, as well as the difficulty and the hashrate are variables of an ecosystem that are related to each other. When the difficulty in the Bitcoin network increases, they need a greater hashrate to mine blocks and in this way obtain the reward, which at this moment is 12.5 BTC, in addition to the transaction fees.
The interesting thing is that the difficulty of mining increases as more people join the network, therefore, the need for hashpower increases. In other words, it takes more attempts per second to find the solution.
This causes the average time to find a new block is 10 minutes, something that must be adjusting the Bitcoin protocol.
The reward of 12.5 BTC is very attractive ($ 45,000), but before launching you to mine Bitcoin you must understand that this work is very expensive, both for the amount of electricity needed and the hardware (how is Bitcoin mining?) If this seems to you little, in addition you will have to have some knowledge in computer science