What Is ‘Hash Rate’ and How Does It Affect Mining Difficulty?
Hash rate is the total combined computational power being used to mine and process transactions on a Proof-of-Work blockchain. It is measured in hashes per second.
The mining difficulty is directly proportional to the hash rate. As the hash rate increases, the network automatically increases the difficulty to maintain the target block time.
Conversely, if the hash rate drops, the difficulty decreases.
Glossar
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.
Mining Difficulty
Algorithm ⎊ The mining difficulty, fundamentally, represents a dynamically adjusted parameter within blockchain networks, primarily designed to maintain a consistent block generation rate irrespective of computational power fluctuations.
Hash Rate
Power ⎊ Hash rate quantifies the total computational power dedicated to solving the cryptographic puzzle in a Proof-of-Work network.