What Is the Difference between Hashrate and Network Difficulty?
Hashrate is the total computational power being contributed to the network by all miners, measured in hashes per second (H/s). It represents the speed at which the network is attempting to solve the cryptographic puzzle.
Network difficulty, conversely, is a variable metric that determines how hard it is to find a valid block. The difficulty is automatically adjusted by the protocol to maintain a consistent block time (e.g. every 10 minutes for Bitcoin), regardless of changes in the total hashrate.
If hashrate increases, difficulty increases to slow block production.
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.
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.
Hashrate Volatility
Measure ⎊ Hashrate volatility is a quantitative measure of the dispersion and rate of change in the total computational power securing a Proof-of-Work network over a defined time window.
Total Computational Power
Computation ⎊ Within cryptocurrency, options trading, and financial derivatives, computation represents the core engine driving market efficiency and strategic execution.
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.