- Hash is a guess that a node makes while solving a complex math problem in the Proof-of-Work consensus.
- Terahashes means a trillion hashes per second.
Blockchains such as Bitcoin rely on Proof-of-Work as their consensus protocol, where the miner needs to prove that they have done some work and they are legitimate miners. Here, the work means solving a complex mathematical question using strong computer hardware which has used their resources of electricity.
What are Hash Functions?
Hash functions are functions that convert any input data into an output of fixed characters. In Bitcoin, any input is converted into a combination of 64 characters. However, these are one-way functions which means that the input can’t be reverse-engineered from the output. However, a guess can be made on the input, to produce the same output as the given hash.
These functions are collision-free. This means that no two inputs will lead back to the same output. Each unique input has a unique output. Bitcoin blockchain relies on the SHA-256 (Secure Hash Algorithm 256-bit) algorithm.
a | ca978112ca1bbdcafac231b39a23dc4da786eff8147c4e72b9807785afee48bb |
aa | 961b6dd3ede3cb8ecbaacbd68de040cd78eb2ed5889130cceb4c49268ea4d506 |
A | 559aead08264d5795d3909718cdd05abd49572e84fe55590eef31a88a08fdffd |
The table shows different outputs generated from nearly the same inputs. The algorithm takes into account even the capital letters and space bars to produce unique outputs.
How are Mining and Hashrate Related?
Crypto mining involves miners solving complex mathematical problems to validate transactions. However, this process is not done by a single miner; many miners are competing against each other and the one to correctly guess first, is awarded Bitcoins.
Hashrate is the measure of the computational power of a computer which tells how long it will take for a miner to validate transactions or solve a math problem.
Example: 000000000019d6689c085ae165831e934ff763ae46a2a6c172b3f1b60a8ce26f
This is an example of an output from a hash function. Notice that it contains 64 characters and it will take nearly unlimited guesses for a miner to compute its input. Thus, it becomes a resource-intensive process, using a high amount of computational power, and the miners are rewarded in Bitcoins to carry out the task.
Hash = Guess
Hash Rates are measured in different units which are:
KH/s | Kilo hash per second | One thousand |
MH/s | Mega hash per second | One million |
GH/s | Giga hash per second | One billion |
TH/s | Tera hash per second | One trillion |
PH/s | Penta hash per second | One quadrillion |
EH/s | Exa hash per second | One quintillion |
ZH/s | Zeta hash per second | One sextillion |
YH/s | You hash per second | One septillion |
How is Cryptocurrency Related to Hashrate?
Hashrate is the measure of a blockchain network’s security, health, and mining difficulty.
Miners generally prefer a network with a high hash rate as it is more secure. However, a higher hash rate also indicates that there are many other miners in the competition. A network may have thousands of miners.
So, the computer makes nearly millions of guesses per second, making the overall hash rate of the network hit trillions or even more. Presently, the hash rate of Bitcoin is measured in EH/s, and Ethereum’s is measured in TH/s.
Final Thoughts
Hashrate is an important factor for a miner’s profit. As the blockchain’s value grows and more miners join the network, the security is increased. However, the computational load of the network also increases. These high energy consumptions are already damaging the environment and more cryptocurrencies like Ethereum are adopting Proof-of-Stake consensus protocols.
As this value increases shortly, it will become impossible for a single miner with a computer to mine bitcoins. Taking this into consideration, organizations have already started investing in renewable energy sources to hold their feet on the line.