whats hashrate and why does it matter for the blockchain
Want to help Chung with this?
Start private chat
Simply put, hash rate tells us how efficient a miner's machine is. It measures the number of times a hash function can be calculated by a machine in one second. So bascially, the higher the hash rate the higher the miner stands to earn :)
Also it matters to the blockchain as it kind of powers it. A higher hash rate implies that more number of transcations are getting verified and added as blocks to the blockchain!
Hashrate is the amount of calculations a certain miner (of one certain crypto) can do. A blockchain's total hashrate is the amount of calculations all miners (of one certain crypto) together can do. If a blockchain's total hashrate becomes higher, the block difficulty will rise too, as most (I think all) crypto's adapt their block's diffculty to the time it takes on average to mine them. For bitcoin, each block should take 10 minutes. If they take only 5 minutes, the system knows that the block difficulty should become higher, so it doubles and it takes 10 minutes again. The opposit happens if it takes longer than 10 minutes.
For individual miners, it would be bad if the total hashrate rose, as the mining rewards tend to stay the same (or even half after some time...), if the price of said crypto doesn't rise aswell, because the same reward would have to be split among more users, which would obviously result in each user getting a bit less.
The higher the hashrate, the more difficult the crypto-problem is, the more power and electricity you will need to solve it. There are a few coins that do not require high processing power or GPUs. One of them is new coin AAA COIN.
Crypto will survive as no one government can outlaw it since it's decentralized and you can't ban something that has spread it's tentacles in all countries through node servers and wallets.
What is the most likely outcome is the ban on ICOs and exchanges or heavy regulation to collect data on who is using the coins and how much. AML / KYC requirements.
Next step would be the government's to ban cash and to replace them with government issued bicoin-equivalent to control who is getting what and track transactions and movement of money for taxation and overall control purposes.
Two ways - either to comply with government demands and be ready to disclose client information and comply with freezing accounts requests, etc, etc that will infuriate clients. Or go the opposite way - create an exchange in no one country and operate outside the law of any one jurisdiction
If you have big plans in mind, maybe we should take this consultation in person and discuss my full time participation in this?