Explain A Bitcoin Hash To Me Like Im Five
Last updated on March 18th, 2015 at 10:40 am You may have heard the term hash or SHA-256 , but what do they actually mean ? In order to decide which block of transactions will be entered next to the blockchain some sort of contest is held between the miners. They all get a riddle to solve, but you cant actually solve this riddle logically you have to guess the answer. Imagine that you are a Bitcoin miner , and each time you want to enter your block into the blockchain and get a reward you would be given a combination lock and would need to guess the combination in order to enter your block. Now lets say that your computing power or hash/rate is the number of combinations you can guess in a second. So the more computing power you have the faster youd guess the combination. Since the Bitcoin network wants to keep the time between blocks created in the blockchain constant, as more miners or computing power are added to the network it will become harder to guess the combination. Just imagine that as more and more people try to guess the combination you will be given locks with more possible combinations. A hash is just a method used to guess the combination for the lock. Its used by turning a random large number into a smaller number by taking certain actions. so for example lets say that each time you guess the locks combination you would randomly pick a large number and take the first, middle and last numbers from it. If this doesnt work you will randomly pick a different large number and guess again. Of course the miners calculations are much more complex but the idea is that you decide on a certain method of action for guessing and execute it until you get the answer. The SHA-256 or secure hash algorithm 256, is just a specific way of hashing. The same way we could hav Continue reading >>
Bitcoin Mempool Fills Up Again Despite A Rise In Hashrate
Bitcoin Mempool Fills up Again Despite a Rise in Hashrate Bitcoin Mempool Fills up Again Despite a Rise in Hashrate Not a week goes by without some Bitcoin mempool drama these days. Every week or so, the number of unconfirmed transactions rises. In most cases, that is a big problem, yet the matter usually gets resolved pretty quickly. In this particular case, however, over 136,000 transactions are pending. This is an unusual development considering the network hashrate has increased instead of decreased. Having a backlogged Bitcoin mempool is nothing new under the sun. Issues like these arise nearly every single week. The popularity growth of Bitcoin isnt helping matters much in this regard. Nor is the availability of scaling solutions. SegWit is active, but adoption remains abysmally low. It will take some time to solve these matters, that much is certain. Until that happens, we will see a backlog of unconfirmed transactions form every so often. There are multiple reasons why events like these transpire. In most cases, it is the result of a spam attack. Somebody may be flooding the Bitcoin network with low-fee transfers once again. This has happened a few times throughout the year and will continue to happen throughout 2018 as well. Another possible reason is how Bitcoin miners are switching to other currencies. That doesnt appear to be the case either right now. In fact, the Bitcoin network hashrate has been rising steadily as of late. A few hours ago, the network had over 14 exahash per second of mining power. That is now slowly declining a bit again, but it is still between the 11 and 12 exahash we have seen for weeks now. There is a mining difficulty increase to take into account Such a steep increase should never be underestimated whatsoever. Especially if its co Continue reading >>
How Does Cryptocurrency Mining Work? And What Is Cryptocurrencies Hashrate?
how does cryptocurrency mining work and what is cryptocurrencies hashrate How Does Cryptocurrency Mining Work? And What is Cryptocurrencies Hashrate? Until now, while there are investors who have a clear understanding of the process and the mechanics behind it, many are highly exposed to the nuances of mining and with current valuations, are certainly susceptible to sizeable losses, June’s Ethereum flash crash and increased volatility a reminder that as an investor, it’s not just following the masses, but far more. Last year’s Ethereum blockchain split was an event that could have resulted in significant loss and with the 1st August Bitcoin Fork event just around the corner, a greater knowledge of the process and the risks is certainly relevant as cryptocurrency demand continues to build. While many have looked at simply trading cryptocurrencies such as Bitcoin , others have gone into the mining, which is the process through which coins are created. For want to be miners, appropriate hardware and access to the internet is needed for an investor to mine, the actual process being the compilation of recent transactions into blocks in order to solve complex puzzles. The person who solves the puzzle first is permitted to place the next block on the blockchain and reap the rewards, which include transaction fees associated with the transactions carried out in the block, together with a newly released coin, the amount of which is referred to as the block reward. The difficulty in mining is adjustable and is adjusted every 2016 blocks, equivalent to around every 2-weeks, with the adjustment made to ensure that the block rate discovery remains constant, the difficulty is therefore adjusted to the computational power used for mining. It’s a word that many would have hear Continue reading >>
Explaining Hash Rate Or Hash Power In Cryptocurrencies
Explaining Hash Rate Or Hash Power In Cryptocurrencies By: Sudhir Khatwani In: Bitcoin Last Updated: If you are new to the world of cryptocurrencies, I guess you would have heard this number of times that Bitcoin s hash rate, also referred to as hash power, has increased or come down. Does the term make you wonder what it actually means? I actually used to wonder in my initial days as to what Bitcoins hash rate/power actually means. And eventually, after learning a lot of stuff about Bitcoin, I was able to understand the reference. Hash rate or hash power is something very critical and integral to Bitcoins network for a number reasons, that I will explain further in this article. But before that, it is very important that one understands what this actually means because by doing so one will be able to naturally understand why this hash rate/power matters so much. Note: Hash rate/ hash power is used in every cryptocurrency that is proof of work but for this example, I am using Bitcoin because most of us naturally connect to this cryptocurrency. Hash Rate, also Hash Power, is the measuring unit that measures how much power Bitcoin network is consuming to be continuously functional. By continuously functional I mean how much hash power is it consuming to generate/find blocks at the normal mean time of 10 minutes. If you remember, in my previous article What is a Bitcoin hash I explained thoroughly that Bitcoin network consumes a lot of energy because it has to solve mathematical intensive computations regularly to find the blocks. These computations for finding the blocks are basically mathematical puzzles that a miner cannot just guess without a lot of computation. To successfully mine a block, a miner needs to hash the blocks header in such a way that it is less than or Continue reading >>
Bitcoin Hash Rate Going Up, Despite Price Going Down. : Bitcoin
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Hashrate Growth Crypto Voices
Green area: Chain's hashing power (number of hashes per second); Blue line: Annual % change in chain's hashing power; White line: Compounded, annual % change in hashing power over life of chain. A network's hashrate is the most important data point in blockchain tech. It indicates to the world how secure its network is. The hashrate is the "bridge" between the analog world, and the digital world.Essentially, the hashrate describes how much computing power (called hashing power in blockchain speak) is being thrown at the network, by users all across the world. These "miners" are running servers with dedicated processing chips to solve random, cryptographic math problems. The reason miners do this constant computing is that it betters their chances to reap a "block reward." The block reward entitles them to: Newly "mined" coins (analogous to inflation), and Both of these are typically paid out with each new block, which, in Bitcoin's case, is about every 10 minutes. This rewards miners for their proof-of-work.It signals to the world that real "work" and resources, like electricity, have been spent on the Bitcoin network. If there was only 1 computer mining for Bitcoins (or any other cryptocurrency), then that miner would control 100% of the hashing power. However, as Bitcoin and other cryptocurrencies have become very valuable in the marketplace, many, many more miners and mining "pools" around the world have joined the party, in search of earning those Bitcoins inside the block reward. This is one reason why it's said that Bitcoin is decentralized. As more and more miners compete for the block reward, the hashrate, mining calculations and block difficulty will increase. This increase in the network's hashrate over time means an increase in the networks security. Much be Continue reading >>
Hashrate - How Much Cpu Power To Mine 1 Coin A Day? - Monero Stack Exchange
I have been trying to calculate hashrates but it is a little confusing. I just want to get a general idea. What CPU / GPU would be required to solo mine 1 coin a day? This answer will attempt to answer the question at multiple levels, as follows: Section I explains the basics of how to calculate this yourself. Section II provides updated calculations based on Section I. Section III provides an abstracted way to determine this based only on the total network hashrate and the total number of coins in circulation. I. Explaining how to determine this on your own: Monero has an average block time of 2 minutes, meaning that there are approximately 720 blocks per day. Your expected reward is proportional to your share of the network hashrate. The current hashrate is ~23.3 MH/s ( ), or 23300000 H/s. Monero's block reward is decreasing slightly every block. Right now it is a little less than 11 XMR, but I'm going to just use 11.0 in my calculations. To find out the exact reward at any given time, you could go to a block explorer ( ) and click on the most recent block. It will tell you the reward for that block. Disclaimer: The reward changes based on how many transactions are included in a block. For instance, block 1124279 was empty and had a reward of 10.826400000000, while block 1124278 had 4 transactions and a higher reward of 11.078600000000. Nonetheless, you can get a rough idea using this method... Okay, putting it all together, where your share of the hashrate is "n": daily reward (720 * Avg Block Reward * n)/(Network Hashrate) Since the question was for a reward of 1 XMR per day, using the numbers above: which is pretty close to @villabacho's answer. Generally speaking, the formula to determine the hashrate needed to mine 1 XMR per day is: n = (Network Hashrate) / (720 Continue reading >>
Vocabulary - Bitcoin
Bitcoin provides a new approach to payments and, as such, there are some new words that might become a part of your vocabulary. Don't worry, even the humble television created new words! Address Bit Bitcoin Block Block Chain BTC Confirmation Cryptography Double Spend Hash Rate Mining P2P Private Key Signature Wallet A Bitcoin address is similar to a physical address or an email. It is the only information you need to provide for someone to pay you with Bitcoin. An important difference, however, is that each address should only be used for a single transaction. Bit is a common unit used to designate a sub-unit of a bitcoin - 1,000,000 bits is equal to 1 bitcoin (BTC or B). This unit is usually more convenient for pricing tips, goods and services. Bitcoin - with capitalization, is used when describing the concept of Bitcoin, or the entire network itself. e.g. "I was learning about the Bitcoin protocol today." bitcoin - without capitalization, is used to describe bitcoins as a unit of account. e.g. "I sent ten bitcoins today."; it is also often abbreviated BTC or XBT. A block is a record in the block chain that contains and confirms many waiting transactions. Roughly every 10 minutes, on average, a new block including transactions is appended to the block chain through mining . The block chain is a public record of Bitcoin transactions in chronological order. The block chain is shared between all Bitcoin users. It is used to verify the permanence of Bitcoin transactions and to prevent double spending . BTC is a common unit used to designate one bitcoin (B). Confirmation means that a transaction has been processed by the network and is highly unlikely to be reversed. Transactions receive a confirmation when they are included in a block and for each subsequent block. Even a Continue reading >>
Jpmorgan: Bitcoin Miners Are In A 'hash Rate Arms Race'
A vertical stack of three evenly spaced horizontal lines. * Copyright 2018 Business Insider Inc. All rights reserved. Registration on or use of this site constitutes acceptance of our Bitcoin mining is becoming more expensive, according to JPMorgan. That's because miners are "currently in a hash rate arms race." Bitcoin miners are in an arms race that is driving the cost of minting new bitcoin to all-time highs. That's according to a big report on cryptocurrency out Friday by the financial giant JPMorgan. Miners are the folks who unleash new bitcoin into the universe by running computationally intensive algorithms on systems called rigs. The miners pumping out the most computing power or "hash rate," referring to how many cryptographic calculations the machines can do each second have the best chance of earning a new bitcoin. As such, miners are building more and more rigs to one-up their competition. "The industry is currently in a hash rate arms race, as the current bitcoin price is incentivizing the addition of more and more mining capacity," the report said. That doesn't mean more bitcoins are being created. The cryptocurrency's network is designed to increase the difficulty of successfully mining a coin as the total hash power increases to maintain a more or less steady rate of bitcoin creation. More hash power means higher energy costs. As such, the cost to mine one bitcoin has increased dramatically. "If this growth in hash rate continues (as it likely will if margins stay positive) without an offsetting increase in energy efficiency of miners, average costs globally will continue to rise," the bank found. Already, the bank estimates the price of mining one bitcoin has jumped tenfold over the past year. The bank estimates that the price to mine a single bitcoin Continue reading >>
Definitions | Bitcoin Simplified.
Address A Bitcoin address is a unique string of 27-34 alphanumeric characters. An address can be created freely with the use of a wallet and always starts with a 1 or a 3. Alternate Currencies There are many different alternative currency that have sprung up based off of the idea and/or basic code of Bitcoin. A few of the more notable ones are litecoin, namecoin, PPCoin, and Ripple. To learn more about these, please visit our alternate currencies page. ASIC Application-specific Integrated Circuit, an ASIC is the current top of the line technology used in Bitcoin mining. It is able to generate orders of magnitude more hashes per watt of power than the next best technology. For greater detail, please see the hardware page. Block A block is a unit of the code the comprises the bockchain. It is the record of transactions that have occurred since the last block was created and a confirmation to previous transactions. Each block links to the block before it, thus creating a full chain back to the original or genesis block. Blockchain the public record of all bitcoin transactions. The blockchain may be viewed by anyone and can be used to determine how many bitcoins were attached to any one address at a given time. One place to be able to easily view this information is blockchain.info Cold Storage This is the process of moving your bitcoins to an offline wallet. The benefit of this is that no one can hack into your computer and steal your private keys if your computer is not connected to a network. Bitcoins will need to be brought back out of cold storage to be spent or transferred again. Difficulty this is the measure of how hard it is to generate a new block in the blockchain. The difficulty is designed to adjust every 2,016 blocks (roughly 2 weeks) to balance out the rate Continue reading >>
What Is Hash Rate In Bitcoin & Cryptocurrency Mining?
What Is Hash Rate in Bitcoin & Cryptocurrency Mining? Robert Devoe on March 26, 2018 / 0 Comments Looking into getting involved in cryptocurrency mining ? If so, its important to understand what a hash rate is and what it means. Not only that, but how it can affect your bottom line. While you may only be getting into mining as a hobby, its still important to have a good grasp on hash rates so you can make the best decisions for your own personal mining business or hobby. In this article, going to go over all the basics of what hash rate is. Well also talk a bit about how electricity costs can have a major impact on your profitability. In the simplest terms, hash rate refers to the speed at which any mining device operates. Speed is important because cryptocurrency mining is really just a guessing game. Although the term mining suggests that it is a linear process with a start and a finish, like digging out a tunnel, its actually quite different. Without going too much into what mining is, whats happening is each mining device is making thousands or even millions of guesses each second. The goal is to find the correct answer to the question that will solve the current block. While it is entirely possible that you could solve a bitcoin block and receive the full mining reward of 12.5 bitcoin using a 10-year-old laptop, the odds of this happening are much worse than being struck by lightning on a clear and sunny day. In fact, at todays difficulty rates, a single CPU mining at 50 hashes per second would likely take three-quarters of a million years to solo mine a single block. Given those odds, its no wonder that no one in the right mind mines bitcoin with a CPU. When you look up a cryptocurrency mining device such as an ASIC miner or a GPU card, you can compare the device Continue reading >>
Bitcoin Users Vent Frustration As Hashrate Drops 50 Percent In 4 Days
Bitcoin Users Vent Frustration as Hashrate Drops 50 Percent in 4 Days Bitcoin Cash appears to be taking its toll on the Bitcoin network as transaction processing power slows by half. Bitcoin (BTC) users are complaining of slow and expensive transactions as a 50 percent loss of hash rate brings the network to a standstill. Data from Blockchain.info flagged by trader SatoSqueeze shows a halving of BTC hash rate from 8,000 to 4,000 petahash in just four days. That explains most of the unconfirmed transactions, the user adds. #Bitcoin hashrate dropped 50%+ from 8,000 Petahash to 4,000 Petahash in the past 5 days. That explains most of the unconfirmed transactions pic.twitter.com/sxOBlmiHJp SatoSqueeze (@cryptoSqueeze) August 23, 2017 Multiple reports of BTC transactions taking hours or days to confirm are surfacing on social media. The pattern is reminiscent of the network congestion of previous months when Bitcoins mempool expanded to record highs. This time, however, the delays are due to lack of power in the face of competition from Bitcoin Cash (BCH) , which is luring miners with significantly greater rewards. Commentators have criticized BCH for undermining the BTC network in an issue which continues to present intense debate. BTC is finding 4 blocks an hour. #BitcoinCash is finding 43 blocks an hour. Satoshi was right. Miners will mine the more profitable chain. Michael Matthews (@mikerelentless) August 22, 2017 The latest problems for BTC are translating into higher fees as well as waiting times for users meanwhile, with the most recent recommended fee rate from 21.co at 450 satoshis per byte. This rate is four times higher than the recommended rate just weeks ago and matches that at the height of the mempool crisis in May and June. Continue reading >>
What Is Hashing? Under The Hood Of Blockchain
What Is Hashing? Under The Hood Of Blockchain Angel Investors, Startups & Blockchain developers... It is important to know how blockchain Hashing works. In order to do that, however, we need to first understand one of the core principles that go into blockchain creation. Blockchain technology is one of the most innovative and era-defining discoveries of the past century. Seeing the influence it has had over the last few years and the impact that it will have in the future, it surely isnt an exaggeration to say that. In order to understand how various cryptocurrencies like Ethereum and Bitcoin function. In simple terms, hashing means taking an input string of any length and giving out an output of a fixed length. In the context of cryptocurrencies like Bitcoin, the transactions are taken as an input and run through a hashing algorithm ( Bitcoin uses SHA-256 ) which gives an output of a fixed length. Lets see how the hashing process works. We are going put in certain inputs. For this exercise, we are going to use the SHA-256 (Secure Hashing Algorithm 256). As you can see, in the case of SHA-256 , no matter how big or small your input is, the output will always have a fixed 256-bits length. This becomes critical when you are dealing with a huge amount of data and transactions. So basically, instead of remembering the input data which could be huge, you can just remember the hash and keep track. Before we go any further we need to first see the various properties of hashing functions and how they get implemented in the blockchain. A cryptographic hash function is a special class of hash functions which has various properties making it ideal for cryptography. There are certain properties that a cryptographic hash function needs to have in order to be considered secure. Lets Continue reading >>
What Does Bitcoin Hash Rate Mean? - Quora
TL;DR The hash rate measures how powerful a Bitcoin miner's machine is. Specifically, it measures the number of times a hash function can be computed per second. The miner's expected profit is directly proportional to the hash rate. First, a hash function takes an input of any given length and produces an output of a specified length. In the case of Bitcoin, the hash function SHA256 is used. Hash functions are deterministic, that is, the same input will always produce the same output. But they are designed to be unpredictable, in the sense that if you want to find an input that hashes to a specified output, the best possible way is to try many, many random inputs until one of them works. If any more efficient method is found, the hash function is considered broken, and must be replaced. To mine Bitcoins, miners must find an input that includes a list of all of the most recent transactions that need to be verified, and whose hash is smaller than some specified value. (This value is adjusted periodically to change the difficulty.) Once a miner finds such a value, he broadcasts it. The set of transactions that he included are now verified, and that set becomes the next block in the Bitcoin block chain. The miner then receives his reward for contributing his computational power to operate the Bitcoin protocol. Since the only way to find such a value and earn the reward is by brute force search, faster and faster hardware has been developed to compute the SHA256 hash function quickly. The hash rate is the number of times this function can be computed per second. Some machines can now compute trillions of these hashes every second. Continue reading >>
Bitcoin Mining Faq
Where can I view mining data about each block? Mining is the process of spending computing power to process transactions, secure the network, and keeps everyone in the system synchronized together. It can be perceived like the Bitcoin data center except that it has been designed to be fully decentralized with miners operating in all countries and no individual having control over the network. This process is referred to as "mining" as an analogy to gold mining because it is also a temporary mechanism used to issue new bitcoins. Unlike gold mining, however, Bitcoin mining provides a reward in exchange for useful services required to operate a secure payment network. Mining will still be required after the last bitcoin is issued. Anybody can become a Bitcoin miner by running Bitcoin mining software and Bitcoin mining modules with specialized Bitcoin mining hardware . Mining software listens for transaction broadcasts through the peer-to-peer network and performs appropriate tasks to process and confirm these transactions. Bitcoin miners perform this work because they can earn transaction fees paid by users for faster transaction processing, and newly created bitcoins issued into existence according to a fixed formula. For new transactions to be confirmed, they need to be included in a block along with a mathematical proof of work . Such proofs are very hard to generate because there is no way to create them other than by trying billions of calculations per second. This requires miners to perform these calculations before their blocks are accepted by the network and before they are rewarded. As more people start to mine, the difficulty of finding valid blocks is automatically increased by the network to ensure that the average time to find a block remains equal to 10 minu Continue reading >>