Importance of Hashrate in Crypto Mining

The hashrate is an important metric for assessing the strength of a blockchain network – more specifically, its security. The more machines dedicated by honest miners to discovering the next block, the higher the hashrate rises and the harder it becomes for malicious agents to disrupt the network. 

A 51% attack, for example, is when a single individual or group of attackers purchases or rents enough mining equipment to control over 50% of a blockchain’s hashrate. Because blockchains are trustless and abide by a rule known as the “longest chain rule,” a person or group that controls a majority of the hashrate could, in theory, block or reorganize transactions and even reverse their own payments. This would create double spend issues which, in turn, would completely undermine the integrity of the underlying blockchain. A fall in hashrate, therefore, means a reduction in the cost to perform a 51% attack, making the network more vulnerable.