Let’s talk a little about Hashrate

These days there has been talk about the new all-time high of Bitcoin’s hashrate. I would like to explain some concepts that help us understand what this really is and what effects it produces. I hope it helps you.

What is hashrate?

Hashrate is, in simple words, a measure of speed.

It indicates how many mathematical operations per second all the Bitcoin miners (those participants who seek to propose blocks and earn rewards for it) are performing around the world.

Each of those operations is called a hash, that is, an attempt to solve the puzzle.

That’s why, when we talk about hashrate, we literally refer to “hashes per second,” or, in other words, attempts per second.

In the early days of Bitcoin, the network probably performed only a few thousand attempts per second.

Over time, as more computers joined and left, the number of attempts per second has grown enormously.

Today, the network reaches figures that were unthinkable a few years ago, and although the hashrate can go up or down at certain times, the historical trend has always been upward: more and more computers (on average) participate, and more work accumulates in the network.

Why is it important?

It is often said that a higher hashrate makes the network more secure.

And although that relationship is true, it is important to understand it well: security does not come from computers working with the intention of protecting it, but it is an emerging effect of the system.

Each computer that connects does so, in most cases, seeking an economic reward, not necessarily to “defend” Bitcoin.

However, by contributing computing power, it contributes to that collective security. Simply, brilliant.

It is also true that there are people and projects that do decide to contribute computing power with that purpose, because they understand that by adding more work to the network, the emerging result is greater security.

The more computers participate, the more power is needed to alter any part of the chain and the history of transactions that the network as a whole is telling. (we will explore this topic in more detail in other posts).

In summary, the next time you hear that the hashrate is very high or very low, imagine that more (or fewer) computers have joined the task of trying to solve the puzzle.

Personal note:

One of the things that amazes me the most, and that I consider an ingenious design, is that the Bitcoin network manages to coordinate itself with minimal effort.

Any person, anywhere in the world, can connect their computer, contribute, and disconnect whenever they want, without asking for permission. And yet, the network continues to function, synchronized and alive.

Thousands of actors, each with their own interests, working under the same set of rules written in code, shape a powerful network that self-regulates, ensuring its sustainability over time.

That, for me, is one of the most amazing things about this whole system.