Understanding Terahashes Per Second
Terahashes per second is a measurement of the rate of data processing power.
A hash is a unit of measurement for the computer processing power required to solve a problem.
The more hashes you get per second, the more processing power you have.
What Are Terahashes Per Second?
Terahashes per second is one unit that shows how much computing power you have.
Hash rate is measured in units, such as megahashes, gigahashes, terahashes per second, and so on.
One terahash is 1 trillion (1,000,000,000,000) hashes per second.
In Bitcoin mining or blockchain, the rate of hashes per second is significant because it determines how long it takes to complete a block.
Hash Rate in Cryptocurrency
Cryptocurrency mining uses computers to solve complex math problems to verify transactions on a public ledger called the blockchain.
This process, known as mining secures, stores, and tracks cryptocurrency.
The more computing power a miner has, the more likely they will win the race of verifying transactions and earning digital currency.
The hash rate of a cryptocurrency is the measure of a miner’s processing power.
This number indicates how long it takes for a single miner to process all the transactions in a block.
If the number is lower, transactions will be processed faster because fewer miners will compete for the same block reward.
From Easy Beginnings to Evolving Complexity
In 2009, when Bitcoin was emerging as a currency, ordinary desktop computers could easily mine blocks.
As more people started mining, the difficulty of finding new blocks increased significantly to the point where the average time for solving a single block began exceeding 10 minutes.
The Bitcoin network adjusts difficulty so that one block is found every 10 minutes on average.
That means many blocks need fewer than one solution, so lots of your work is wasted (because finding those solutions only earns you transaction fees).
The higher your hash rate, the more often you can successfully mine Bitcoins.
Unraveling the Impact of Speed
This effect is apparent: a miner with a 3 GH/s hashing speed will find approximately three times as many Bitcoins per month as a miner with a 1 GH/s mining speed.
Hash rate is the single most important factor when determining profitability.
Mining hardware efficiency increases every day while Bitcoin exchange rates continue to rise.
This is an important factor in determining how much energy it costs to mine Bitcoin.
More hashes mean more electricity is needed to solve the mathematical problem so it’s all relative.
As a general rule of thumb, the lower your electricity costs (or, the better your mining rig), the more profitable mining will be for you.