How Does a “Hash Rate” Differ from “Network Difficulty”?
Hash rate is the total combined computational power being used by miners to secure a Proof-of-Work network, measured in hashes per second. Network difficulty is a measure of how hard it is to find a valid block hash, and it is a value that is adjusted by the protocol.
The difficulty adjusts to ensure the average time between blocks remains constant (e.g. 10 minutes for Bitcoin), regardless of fluctuations in the total hash rate.
High hash rate leads to a higher difficulty setting.
Glossar
Network Difficulty
Algorithm ⎊ The network difficulty, fundamentally, represents a dynamically adjusted parameter within blockchain systems, primarily designed to maintain a consistent block generation rate irrespective of computational power fluctuations.
Hashes per Second
Measurement ⎊ Hashes per Second quantifies the raw computational throughput capability of a mining device or an entire network, representing the number of cryptographic verification attempts executed within one second.
Hash Rate
Power ⎊ Hash rate quantifies the total computational power dedicated to solving the cryptographic puzzle in a Proof-of-Work network.
Computational Power
Capacity ⎊ The computational power, within the context of cryptocurrency derivatives and options trading, fundamentally represents the aggregate processing capability available to execute complex calculations and simulations.