Crypto 101 · Proof of work
Hashrate and Difficulty Explained: Reading Mining Statistics
Abstract
Network hashrate measures the total computing effort spent on mining, and difficulty is the target that adjusts to keep blocks arriving on time. We explain both, give the unit ladder from H/s to PH/s, and show how a miner's share of the network determines their expected reward, using live data from Scrypt Wallet's own nodes.
Keywords: hashrate, difficulty, TH/s, GH/s, mining statistics
1. In plain English
Hashrate is how many guesses per second the miners on a network make. It is the network's total mining power. Difficulty is how hard the puzzle currently is. If many more miners join, blocks would arrive too quickly, so the network makes the puzzle harder; if miners leave, it makes the puzzle easier. The result is a steady rhythm of blocks whatever the total power.
For an individual miner the important number is share: your hashrate divided by the network's. If you have one in a million of the network's power, you can expect roughly one in a million of the block rewards over time.
2. Reading the units
Table 1. Hashrate units, each a thousand times the previous one.
| Unit | Meaning | Typical use |
|---|---|---|
| H/s | Hashes per second | The base unit |
| kH/s, MH/s | Thousand, million | CPUs, old GPUs |
| GH/s | Billion | Scrypt ASICs are rated in GH/s |
| TH/s, PH/s | Trillion, quadrillion | Whole networks |
3. Go deeper: how difficulty is set
Difficulty is derived from a target: a block is valid only if its header hash is below the target, so a lower target means a harder puzzle [1]. Bitcoin retargets every 2,016 blocks to keep the average near ten minutes [1]; Litecoin's consensus parameters set a 2.5-minute block target and a 3.5-day adjustment window [2]; Dogecoin targets one block per minute [3]. Nodes estimate network hashrate from recent difficulty and block times, which is where the live figures above come from.
4. A worked share example
If the Litecoin network is doing about 2.5 PH/s and your miner does 17 GH/s, your share is 17 / 2,500,000 = 0.00068%. Multiply that by the coins issued per day, and you have a first estimate of your daily reward before fees and luck. The mining profitability guide turns this into a calculator.
5. In Scrypt Wallet
The numbers above come from full nodes that Scrypt runs for its wallet, the same source the Litecoin price page and the mining calculator use.
References
- Bitcoin Wiki contributors (2010). Difficulty. Bitcoin Wiki: the target is retargeted every 2,016 blocks to hold the average block interval near ten minutes. https://en.bitcoin.it/wiki/Difficulty
- Litecoin Project (2011). chainparams.cpp. Litecoin Core source code: main-net consensus parameters (halving interval 840,000; 2.5-minute target spacing). https://github.com/litecoin-project/litecoin/blob/master/src/chainparams.cpp
- Dogecoin Core developers (2013). chainparams.cpp. Dogecoin Core source code: 60-second target spacing; AuxPoW (merged mining) effective from block 371,337. https://github.com/dogecoin/dogecoin/blob/master/src/chainparams.cpp
Common questions
What is a good hashrate?
There is no universal number. What matters is your hashrate as a share of the network's, because that share is your expected fraction of the block rewards.
Why does difficulty change?
So blocks keep arriving at the intended pace when more or less hashrate joins the network.
General education, not financial, tax or legal advice. Figures are schematic. Protocol parameters are cited to primary sources and can change; verify against the linked source before relying on them.