How Is the Total Network Hash Rate Estimated by Blockchain Observers?
The total network hash rate is estimated indirectly by observing the rate at which new blocks are found and comparing it to the current mining difficulty. Since the protocol adjusts difficulty to target a specific block time (e.g.
10 minutes), if blocks are found faster, it is inferred that the hash rate has increased. Observers use the difficulty and the time elapsed between blocks to back-calculate the approximate total computational power currently securing the network.
Glossar
Total Computational Power
Computation ⎊ Within cryptocurrency, options trading, and financial derivatives, computation represents the core engine driving market efficiency and strategic execution.
Time Elapsed between Blocks
Time ⎊ The time elapsed between blocks represents the interval required for a miner or validator to successfully create and propagate a new block to the network.
Total Network Hash Rate
Hash ⎊ The total network hash rate represents the cumulative computational power dedicated to validating transactions and securing a proof-of-work cryptocurrency network, such as Bitcoin.
Network Hash Rate
Security ⎊ Network hash rate represents the collective computational power dedicated to a proof-of-work blockchain, directly influencing the cost and feasibility of malicious attacks.
Hash Rate
Power ⎊ Hash rate quantifies the total computational power dedicated to solving the cryptographic puzzle in a Proof-of-Work network.