How Does the Total Hashrate of a Network Influence Its Perceived Security Level?
The total hashrate of a Proof-of-Work network is directly proportional to its perceived security level. A higher total hashrate means that an attacker needs to acquire a proportionally larger amount of computational power to execute a 51% attack.
This increases the economic cost of the attack significantly, making it less likely to be profitable. Therefore, a high hashrate serves as a strong economic deterrent, enhancing the network's resilience against malicious takeover attempts.
Glossar
Computational Power
Algorithm ⎊ Computational power, within cryptocurrency, options trading, and financial derivatives, fundamentally represents the processing capacity dedicated to executing complex calculations essential for network operation and trade execution.
Network Influence
Control ⎊ Network Influence describes the effective power an individual or collective entity wields over the consensus mechanism of a decentralized ledger, often measured by their proportion of the total hash rate or staked capital.
Hashrate
Measurement ⎊ Hashrate is the quantifiable measure of the total computational power dedicated to solving the cryptographic puzzle required to mine a new block on a Proof-of-Work blockchain.