Bitcoin uses the SHA-256 cryptographic hashing function to measure its hash rate. This function converts input data into a 256-bit hash, making it easy to calculate the hash from the input but difficult to do the reverse.
The hash rate is a measure of how many calculations can be performed per second and is often expressed in terms of billions, trillions, quadrillions, or quintillions. For example, a hash rate of 1BH/s means one billion calculations per second. Bitcoin’s hash rate is measured in Exahashes per second (EH/s), which equals one quintillion hashes. The network’s overall hash rate can be estimated by comparing the average block mining time with the network difficulty at a given moment.
So, what exactly is mining difficulty? Mining difficulty refers to the challenge miners face in generating a hash that is lower than the target hash, achieved by adjusting the numerical value of the hashed block header. On average, a new Bitcoin block is found every ten minutes. If blocks are discovered more or less frequently than this average, the difficulty is adjusted accordingly.
It’s important to mention that Bitcoin’s mining difficulty is automatically adjusted every 2,016 blocks. This adjustment depends on the total hashing power in the mining network and the number of miners present. But, how can you keep track of Bitcoin’s current hash rate?
While the exact hashing power of Bitcoin is not known, it can be estimated based on the number of blocks being mined and the block difficulty level. Websites like Blockhain.com provide estimates of Bitcoin’s current hash rate, which was 224.383m TH/s as of September 25, 2022.
Image Source: Pro Aerial Master / Shutterstock
