Home » Glossary » Hash rate

Hash rate

Definition

The meaning of the term hash rate is the speed at which a computer is able to perform hashing computations. For cryptocurrencies, it represents the performance and efficiency of a mining machine. 

Understanding the term

Hash rate refers to the measure of the total computational power used by a proof-of-work cryptocurrency network to process transactions. In other words, hash rate measures how fast a cryptocurrency miner completes these computations.

In mining, the hash rate is, therefore, directly proportional to a miner or mining pool’s profitability.  If the hash rate is higher, it is an indication that the profitability of mining a block will be higher. This increases the chances of a miner receiving a block reward.

The hash rate is measured in hashes per second(h/s) along with an SI prefix such as tera, giga, and mega. For instance, a hash rate of 1Th/s means that a blockchain network computes one trillion hashes per second. ASIC miners which have more computational power are now available in the market. As a result, the hash rate for Bitcoin started rising very fast, causing a steep increase in mining difficulty.

Takeaway

The hash rate is the most crucial metric for assessing the strength and security of a blockchain network. As more machines are used by honest miners to discover the next block, the hash rate rises. This makes it harder for malicious agents to disrupt the network.

Post navigation