How Does Hashrate Serve as an Indicator of Network Security?
Hashrate measures the total computational power used to process transactions and secure a Proof-of-Work blockchain. A higher hashrate means more miners are competing to validate blocks, making the network more robust.
This increased power makes it prohibitively expensive and difficult for a malicious actor to gain control of a majority of the network's power (a 51% attack). Therefore, a rising hashrate signals strong miner participation and greater resilience against attacks.
A low hashrate implies fewer miners, increasing vulnerability.
Glossar
Hashrate
Definition ⎊ Hashrate represents the total computational power per second that a miner or the entire network dedicates to solving cryptographic puzzles in a Proof of Work blockchain.
Hashrate Futures
Contract ⎊ Hashrate futures represent standardized derivative contracts granting the holder the right, but not the obligation, to buy or sell a specified quantity of Bitcoin mining hashrate at a predetermined price on a future date.
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.
Low Hashrate
Hash ⎊ A measure of the total computational power being dedicated to securing a Proof-of-Work blockchain, typically expressed in hashes per second.