Hashing Explained | What is a Hash Rate? | Bitcoin Hash Rate

Hash rate is a measure of the total computational power being used by a proof-of-work cryptocurrency network to process transactions in a blockchain, such as Bitcoin, it is essentially the speed of mining and It can help investors gauge the health and security of a cryptocurrency’s network.

A “hash” is a fixed-length alphanumeric code that is used to represent words, messages, and data of any length. Crypto projects use a variety of different hashing algorithms to create different types of hash code.

The goal is to be the first miner to come up with a block of transaction data that contains the correct solution and meets all the criteria to be considered valid. Before new transactional data can be added to the next block in the chain, miners must compete using their machines to guess a number. More specifically, miners are trying to produce a hash that is lower than or equal to the numeric value of the ‘target’ hash by changing a single value called a ‘nonce’. Each time the nonce is changed, an entirely new hash is created. Miners are guessing the nonce (number only used once) in order to guess a part of the output data specified by the network difficulty. By guessing the correct nonce, they will correctly guess the hash output of the transactions in the block.

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