The hash rate is the unit of measurement of the processing power of the Bitcoin network. It is considered an important concept in the world of cryptocurrencies. Its influence can be seen in issues of blockchain security, its decentralization and the sustainability of the network over time.
It becomes a term of much use, after the appearance of Bitcoin, it becomes an important part of that cryptocurrency since it indicates the power of the network and at the same time, it indicates how the evolution of the network will be based on time, it means that the “hash rate” is much more than numbers, it is a critical concept for Bitcoin technology and all those cryptocurrencies that are derived from it.
What is the hash rate?
It refers to the numerical value found in each cryptocurrency that makes use of the proof of work (POW). This value indicates the number of computational operations that a network of miners is capable of performing, in order to solve the puzzles that are derived from the cryptographic function used by the cryptocurrency.
How does hash rate work?
The hash rate refers to the number of computations that miners use to validate the Bitcoin Blockchain. It means that the greater the hashing power in the network, the greater the security and resistance to network attacks. The unit of measurement of the hash is by amounts of hashes per second, H/s. These values are subject to rising or fall periodically, this as a result of randomness when discovering blocks, even with constant hashing power. The number of blocks mined varies daily.
How is the hashing power estimated?
For the methodology to estimate the hash power, the number of blocks that are extracted in the last 24 hours and the current difficulty of each block is taken into account. The components of its formula are:
T = average time between mined blocks
D = difficulty
H = hash rate (H / s)
H = 232 D / T
For a better understanding we will share an example:
Pedro is a Bitcoin miner and works under certain conditions:
Date September 3, 2020.
Solo mining, does not participate in any mining pool.
Hash rate = 118 EH / s = 118,000.00 TH/s.
Mining equipment: Antminer S19 Pro 110 TH/s.
In this case, if the network hashes totals are taken and divided by the hashes that Pedro has, the result will be a number that tells us how many blocks can occur before Pedro mines a single block (on average).
If there are currently 118,000,000 TH / s in the network and Pedro has 110 TH / s, he will give the following:
118,000.00 TH / s / 110TH / s = 1,072,727.27, which means that Pedro has 1,072,727.27 of the total hashing power dedicated to the Bitcoin network. This could be interpreted, that there will be 1,072,727.27 blocks “before” Pedro gets one in probabilistic terms.
So if there are 144 blocks in a day, we have:
Average T = 1,072,727.27 blocks / 144 blocks / day = 7,449.49 days.
Average T = 7,449.49 days / 365 days / year = 20.40 years. It means that Pedro will have to mine for 20.40 years continuously to be able to discover a block under these conditions, that is the average probability.
These calculations indicate that to mine a block of Bitcoin it is necessary to have immense computational power, that implies that in order to achieve this objective with less effort, it is advisable to join forces, that is, to join computing power and in this way «mitigate» the degree of difficulty and share risks and benefits, in the practice known as Pool Minning.
What do you think about this topic? Do you know the formula for calculating hasting power?
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