Do you remember 2017? When Bitcoin took place from 4,000 to 20,000 in a few months? Now Bitcoin has managed the $ 60,000 mark, and the story says it goes to $ 100,000. It is the whole sun and the rainbow. The overall hatching rate has only increased by around 60%, compared to the 500% increase in the room itself.
Wonderful stuff !! Can you guess what happened afterwards? The hash level has set up an astronomical 681% During the following months, decimating beneficiary margins as new minors have been produced and deployed. In addition, the “Blockchain” sector is fucking fire, with a retail euphoria and the institutional money flowing in the river. This presents an incredibly unique financial arbitration situation to us.
Mining Hashrate is a key safety metric. The more the hash (IT) power in the network, the greater its security and overall resistance to the attack.
Although Bitcoin is exact chopping power is unknown, it is possible to estimate it from the number of extracted blocks and the difficulty of the current block.
What is bitcoin extraction?
Before starting with Bitcoin extraction, I have to put some key concepts here.
In simple terms, Bitcoin exploitation is the process of creating new bitcoin by resolving a calculation puzzle. The result of bitcoin extraction is twofold. First, when computers solve these complex mathematical problems advanced on blockchain, they produce new bitcoin.
Second, by solving the problems of computer mathematics, bitcoin minors make the Bitcoin payment network reliable and secure by checking transaction information.
To exploit a new block on the Bitcoin blockchain, you must find a number called “nuncio“. This number is extremely difficult to obtain, and there is no other easy way to get it. Minors must try calculations over and over until they force the correct result raw. In addition, the brute force method is extremely long and costly in calculation, because you literally try all combinations to get the one that works.
It is estimated that the total hatching rate of the entire Bitcoin network is currently about or about 151 million. This represents 151 million, billions of non-nurses have attempted, per second.
On average, the network guarantees that it takes approximately 10 minutes to operate a block, so that we can multiply 151 million billions per 600 to obtain our response. It is 9 * 10 ^ 22 or 9000000000000000000,000,000 different combinations attempted, to break the block, enter your part and go to the next. And it only becomes more difficult day by day.
The network adjusts the number of calculations must be carried out on average to find a valid nonce every 2 weeks. The objective is to maintain the extraction times consistent with 1 block per 10 minutes. Therefore, if the mining power is doubled, the difficulty would also be doubled.
Asic’s rise
At the time, any Schmuck could use Bitcoin and make a slight profit on their personal computer.
With the mad increase in the hash power, you end up losing more money for electricity costs you would only make mining, by a factor of 10. It was largely partly, due to some really intelligent people inventing what is called the ASIC minor.
In other words, ASIC means integrated circuit specific to application.
In 2013, people began to develop ASIC chips specially designed to force the SHA-256 function raw and find nonces.
These chips are incredibly good in what they do, even a shit chip being a factor of 100 times faster than your standard PC.
Asic minors are used by all Bitcoin extraction operations.
And it is important to know the costs and the general costs before continuing.
One last thing to note is that Bitcoin exploitation becomes incredibly profitable when there is a rapid increase in Bitcoin prices.
In addition, this is due to the “discrepancy” that occurs while the new bitcoin extraction equipment is under construction and deployment to capture this excess benefit.
Bitcoin minors and ASIC minors
Nowadays, the average high -end asic minor Can generate about 110 hashs of tera per second.
This represents 110 billions of attempts to find the nuncio, per second.
The best mining companies manage a fuck of these minors in tandem, to obtain a few thousand peta-hashs per second.
For reference, Peta hash is equal to 1000 tera-hashs, which means that companies carrying out 1000 PETA hunts actually operate at a million TERA, per second.
This represents a million hastened per second and a million billions of billions.
As far as we are concerned, under current conditions, if you operate 1000ph / s, you manage 4000 bitcoins per year.
Obviously, it is far from reality as the world mining power increases, but keep this number in mind, because it is important.
1000ph / s = 4000 pieces extracted in one year.
The hash power is estimated from the number of blocks extracted in the last 24 hours and the difficulty of the current block.
More specifically, given the average time t between the blocks extracted and a difficulty d, the hash rate estimated per second is given by the formula H = 2 32 D / t.
Thank you for reading, let me know your thoughts and comments below.
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