Since two days, a new widget has been deployed on Twitter in order to publish the Feathercoin network Hashrate. Why is it so important?
Crypto currencies such as BITCOIN or FEATHERCOIN are working based on the mining of blocks.
“What is MINING”? Let come back to some basics. For Feathercoin today, every minute, 40 FTC are created as a reward to the system who resolve a complex mathematical equation. Overtime, it creates the circulating supply of the currency. The more systems are mining the same currency, the more the network security increase but the less chance you have to obtain the reward.
This process of resolving the equation and getting reward is call “MINING“.
The mined block must be validated by a majority of the global network power in order to add it to the blockchain.
“Do you mean that it is like the election?”
Yes it is. The majority “vote” for the respect of the rules (also called the consensus).
And what about the HASHRATE? The hashrate is the measure of the total PROCESSING POWER provided by all the miners together at a given time.
Therefore the higher the hashrate is and the more mining devices are busy mining the crypto-currency. As a result, theoretically the mining is MORE DECENTRALIZED / MORE DISTRIBUTED when the hashrate is high increasing therefore the SECURITY. I say theoretically because you can have big miner running huge hashrate on their own.
In addition when the hashrate is high it protects the network against 51% attack as explain in a previous article. In fact, when the hashrate is high it becomes difficult for a specific miner (the attacker) to get suddenly enough power to get the 51% power of the network and attack it.
See below the current BITCOIN distribution of hashrate across the different miners. (source)
The current Feathercoin network is around 4Ghz and the mining algorithm is called Neoscrypt. You may think about what is 4Ghz? Well, one high-end Nvidia card produces around 2,200 Khz so it means that the Feathercoin Network need around 1,800 cards to run it. This is a huge power which allow our favorite network to be well protected.
And what about the PRICE?
Of course there is a correlation between the price and the network power. Indeed, when the price increase it becomes more attractive for miner to mine the coin and get the reward. In general, when the price of a coin increase, the hashrate increase as well.
In history Feathercoin reached hashrate 12Ghz and we will certainly see this power again in the future.
I wish you beautiful day.