Do you find crypto terms hard to understand?
If your answer is yes, then this series is for you. Crypto Terminology: A to Z helps you decipher the alphabet soup of crypto terms and definitions, arranged in 26 bite-sized portions for you to chew on easily.
Today, we explore words that begin with the letter H.
First up? Halving.
Unlike fiat currencies, there are no central banks or authority that can manage the supply of Bitcoin, or its inflation rate. The idea behind halving is to ensure that the world’s leading cryptocurrency doesn’t fall prey to heightened inflation.
The event happens at intervals of 210,000 blocks, which is by historical measures, every four years or so. The most recent halving event happened in May 2020, where rewards were reduced from 12.5 BTC to 6.25 BTC.
Bitcoin halving is seen as one of the most important events in the crypto world, but it’s not the only one.
Introducing: Hard Fork.
Bitcoin Cash (BCH) is currently a top 10 cryptocurrency by market capitalization. But did you know that this cryptocurrency was a result of one of the most prominent hard forks in crypto history? BCH was created in August 2017 as a result of a BTC hard fork. Anyone who held the BTC before the fork ended up with the same amount of both coins after the fork.
There is a lot that goes into the technical process required to generate cryptocurrencies. One good way to gauge the network’s health is by looking at its Hash Rate.
Hash is an essential part of the crypto protocol, commonly used to store passwords and ensure integrity checks during or after data transfer. By extension, mining hash rate is a key security metric. For miners, having a mining machine with a higher hash rate is more favorable than a lower one, as it relates to the network’s ability to fend off bad actors — effectively raises the chance for successful mining.
ICYMI: Bitcoin’s hash rate has been operating at unprecedented speeds in recent weeks, hitting a whopping 155.42 EH/s on Jan. 17, 2021.
Do you think there is more upside to Bitcoin’s hash rate?