The crypto industry is rapidly evolving, bringing into the vocabulary of modern man neologisms that were once familiar only to experienced miners. Today we will look into the concept of “hash rate” – one of the key performance indicators of cryptocurrency mining equipment.
What is the essence of it?
Hashrate (from the English word “hash rate”, “speed”) is the total computing power of the equipment used in the process of mining. It is also called hash rate and is denoted by the formula H/s.
In other words, a hash is a result after the information is encrypted into a set of characters of a certain length. However, different networks use different encryption algorithms, so the hash does not coincide in them.
The conversion of any amount of information into a set of characters is very fast, and there is no way to stop the process. This is what makes the whole blockchain efficient.
If you change even one character in the source data, the output set will be different. This is the uniqueness and uniqueness of the hash.
A hash rate demonstrates the number of combinations that a video card or miner can make in a second. The units of measure used today are hash/s (H/s), kilo hash/s (KH/s), mega hash/s (MH/s), gig hash/s (GH/s), ter hash/s (TH/s), pet hash/s (PH/s), ex hash/s (EH/s). Each subsequent one is equal to 1,000 of the previous ones.
A high hash rate means that more resources are allocated to process transactions in the blockchain. This makes the network resistant to attacks, as an attacker would need to spend a lot of money and effort to outperform other mining businesses and gain control of 51% of the vote.
Consequently, the higher the hash rate, the harder it is for a network fraudster to get the necessary hashing power and the harder it is to carry out an attack.
Consequently, there is more competition in equipment manufacturing – companies are producing new, more sophisticated, and more expensive devices with high hash rates. Miners are also trying to upgrade devices to increase profits and network complexity.
On the other hand, increasing the hash rate leads to side effects – increased power consumption and heat transfer. As a result, not only does the electricity bill skyrocket but so does the need to install a better cooling system.
Check before you buy
Hash rate depends on several key parameters, and one of them is the cryptocurrency mining algorithm. For example, several devices produce huge performance in networks with SHA algorithm (Bitcoin, Peercoin, Namecoin, etc.), but this efficiency will be much lower in a network with Scrypt algorithm (Litecoin, Dogecoin, Gridcoin, etc.).
Much depends on the specification of the equipment itself. Therefore, it is important to know the characteristics of the device before purchasing it.
Don’t overlook the growing popularity of the cryptocurrency itself. More and more miners are adding processing power to the network, thus increasing its hash rate and, accordingly, the complexity of mining.