Hash Rate
The total combined computational power being used to mine and process transactions on a Proof of Work blockchain, measured in hashes per second. A higher hash rate means greater network security because it becomes more expensive for an attacker to gain majority control. Hash rate is a key indicator of mining activity and network health.
“Bitcoin's hash rate is measured in exahashes per second (EH/s). In 2024, it exceeded 600 EH/s — meaning miners collectively perform over 600 quintillion hash computations per second.”
Mining
The process of using computational power to validate transactions and add new blocks to a Proof of Work blockchain. Miners compete to solve a cryptographic puzzle (finding a hash below a target difficulty), and the first to succeed earns the block reward plus transaction fees. Mining secures the network by making it prohibitively expensive to attack.
Proof of Work (PoW)
A consensus mechanism where miners compete to solve computationally difficult cryptographic puzzles (finding a hash below a target difficulty) to validate transactions and create new blocks. The first miner to find a valid solution broadcasts it to the network and earns the block reward. PoW's security comes from the immense cost of computation — attacking the network requires controlling 51%+ of the total hash rate, which is prohibitively expensive for major chains.
Decentralization
The distribution of control, authority, and data processing across a network of participants rather than concentrating it in a single entity. In blockchain, decentralization means no single party controls the network, making it censorship-resistant and reducing single points of failure.