Hash power, or hash rate, are interchangeable terms used to describe the combined computational power of a specific cryptocurrency network or the power of an individual mining rig on that network.
The operation of any mine-able cryptocurrency — for example, Bitcoin (BTC) — is maintained by its own network of miners: individuals and organizations that contribute the computational power of their mining rigs to process transactions and emit new coins. They do this via calculating cryptographic hashes — pseudo-random data strings that are used to prevent double spending and to ensure that new coins can’t be created out of thin air.
The hash rate of a mining rig is the number of hashes that it can calculate per second. The combined hash power of a cryptocurrency network is the sum of the hash rates of all mining rigs that are in operation at any given moment.
Different devices, such as CPUs, GPUs and ASICs have differing hash rates, depending on their sheer computational power, as well as how well-optimized they are for the specific task of processing a given hash function.
“You cannot mine just 1 Bitcoin, instead crypto miners will mine one block, with the reward set at 6.25 BTC per block.”
– Each Bitcoin block takes 10 minutes to mine. This means that in theory, it will take just 10 minutes to mine 1 BTC (as part of the 6.25 BTC reward).
The hash rate of an individual device is a key metric for measuring the profitability of a mining setup as it determines the likelihood of finding a “good” hash that will produce a mining reward.
The overall hash rate of a cryptocurrency network is an indicator of that coin’s security: in order to hack the network for personal gain, the attackers need to overcome its total hash power — making the task nearly impossible at high enough hash rates.
When there are more miners in the network, the difficulty of mining increases. As a result, each block requires more computational power to solve. This is likely to only increase, especially after the Bitcoin hashrate just hit its all-time high.
– The hash rate of an individual device is a key metric for measuring the profitability of a mining setup
The hashing power is estimated from the number of blocks being mined in the last 24h and the current block difficulty. More specifically, given the average time T between mined blocks and a difficulty D, the estimated hash rate per second H is given by the formula H = 2 32 D / T.
Daily numbers (raw values) may periodically rise or drop as a result of the randomness of block discovery : even with a hashing power constant, the number of blocks mined can vary in day. Our analysts have found that looking at a 7 day average is a better representation of the underlying power.
Due to the unlikelihood of mining a single block on one rig, many bitcoin miners join a mining pool. Mining pools combine the collective computing power of their members and split the profits based on the proportion of power each miner brings.
The proportion of power, or hash rate, depends on your ASIC mining setup. To put this into context, one of the most powerful ASIC rigs – the Antminer S19 Pro – has a hash rate of 110 TH/s. This makes up just 0.0002% of the Foundry USA pool.