What is hash rate means in cryptocurrency mining?
The hash rate is use to measure unit of the processing power of a cryptocurrency network. For example to Bitcoin, the hashrate is the speed at which a compute is completing an operation in the Bitcoin code. It also measures how powerful a miner’s hardware is. The profit is directly proportional to the hashrate. So, the higher hashrate the better when mining because it increases your
chances of solving the next block and receiving the reward.
Hash rate denominations
- 1 kH/s is 1,000 (one thousand) hashes per second
- 1 MH/s is 1,000,000 (one million) hashes per second.
- 1 GH/s is 1,000,000,000 (one billion) hashes per second.
- 1 TH/s is 1,000,000,000,000 (one trillion) hashes per second.
- 1 PH/s is 1,000,000,000,000,000 (one quadrillion) hashes per second.
- 1 EH/s is 1,000,000,000,000,000,000 (one quintillion) hashes per second.
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
- and so forth
The most important data point in blockchain technology is the network’s hash rate, this keeps bitcoin and Altcoins safe from attacks by bad actors. Network security is the most important service provided by miners. The miners run servers with dedicated processing chips randomly solving cryptographic puzzle in each block.
Why miners do constant computing? Because it gives them a higher chances to win the reward attached to each block. Miners need incentives to pay for their electricity consumption and the cost of the hardware. The block reward entitles them to:
- Newly mined coin
- Transaction fees
Essentially, hash rate is as equally as to how much hashing power is being thrown at the network by all users across the world. The “hashing” term means the speed of your hardware in processing data from the Blockchain and solving the intensive mathematical equations to earn reward. Again, the higher hash rate the better when mining!
