As per the report, hashrate of the bitcoin network recently gained its all-time high (ATH) value once again after a very short interval of time, signifies adoption and trust in bitcoin. The network’s hashrate touched the 78.9978 EH/s mark on July 29, 2019.
During the bull run of 2017 when bitcoin suddenly gained the global attention of investors, network’s hashrate was around the mark of 15 EH/s. The current level shows how far the bitcoin network has progressed despite the bear run that prevailed for over a year.
Hashrate essentially gives one an idea of the network strength of a decentralized proof-of-work (PoW) based system like that of bitcoin. It shows how much computing power the miners are contributing to the network. It is an indication of the miner participation from across the globe.
As more miners step into the network with their computing powers, overall hashrate of the network grows. This current metric signifies the number of hashes per second, that are being performed by miners on the network. Hashes mean the number of algorithmic computations, performed by the miners to get the correct hash associated with the mining of a block. The recent ATH-hit of the hash rate in the bitcoin ecosystem shows that the interest of mining in the bitcoin network is on the rise worldwide.
Hashrate also acts as an important lens when it comes to network security. Higher the hashrate, more difficult it becomes for the attackers to take over the network. Since bitcoin is a decentralized network, it cannot be overtaken by hacking just one single node or entity. A majority is needed for developing consensus in the bitcoin network and authorizing mining of blockchain or change of record.
With increased hashrate, it becomes more difficult for malicious parties to gain a majority of the network’s hashrate. Since at the back end, costly hardware rigs, GPUs and other computer accessories are needed to generate increased hashrate, overtaking the network in order to do a 51% attack becomes “not feasible” on the monetary end as well.
Bitcoin’s mining hashrate just hit a new all-time high.
The higher the hashrate, the more costly attacks become. Security of the network continues to increase! ? https://t.co/CJujjEnc1H
— Stephen Cole (@sthenc) July 31, 2019
On the other end of the spectrum, bitcoin also recently crossed the $3 billion in terms of daily transactions settlement. Now with the hashrate crossing an ATH, it seems evident that bitcoin is not slowing down despite all the hinderance that is being faced by it.
The hashrate peak is also significant to the fact that it was just only 2016 when the bitcoin network crossed 1 EH/s hashrate level. With just over 3 years of progress, the hashrate has come in the upper 70s. Increase transaction settling and hashrate contribution signify that bitcoin has been rising in the ranks in terms of global adoption.
Right now, the bitcoin ecosystem is much healthier than before. Although the initial use-case of bitcoin and cryptocurrencies was largely driven by their usage in illegal activities such as money laundering, the focus is now shifting towards importing regulations in the space so that adoption can be made to increase on the institutional and corporate end.
Even the social media giant Facebook has launched its very own cryptocurrency Libra, seeing the potential that this space carries. After Facebook’s Libra hearings in the Congress to clarify the regulatory restrictions under which the currency will fall, lawmakers have now started to shift their focus on the broader crypto world as well. All in all, the increased hashrate has shown that trust is growing worldwide when it comes to bitcoin mining. Bitcoin world is rising in the financial ranks…and it’s rising fast.