Demystifying the world of cryptocurrencies can be a taunting task.
Even before you dive into the emerging world of defi, web 3.0, and NFTs, what seems like the relatively simple Bitcoin network has a hidden underworld of complexity and nuance.
Cryptocurrencies like Bitcoin and Ethereum can be bought without the necessity of a financial intermediary, like an exchange or crypto broker.
Instead, you can complete transactions on-chain, transferring capital and funds to individuals across the world utilizing the computing power of a peer-to-peer network.
These transactions, in turn, are validated and secured by miners, who dedicate computing power via solving complicated mathematical problems. Once solved, a hash is created.
The hash rate, in formal terms, is the number of hash operations done in a given period of time.
Less formally, the hash rate essentially measures the security and health of any proof-of-work cryptocurrency.
There’s no better way for those wanting a deeper dive than reading the 2008 Bitcoin white paper.