Hash Rate Distribution
The Hash Rate is a measure of the aggregate computing power provided by miners in a Proof of Work (PoW) blockchain. The distribution of hash rate points out how the contribution of computing resources is split across mining pools.
Small mining pools are aggregated in the ‘other’ category, while independent miners not connected to any mining pool are classified as ‘unknown’.
Hash Rate Distribution for Bitcoin
The hash rate distribution metric is valuable to assess the dominance of particular mining pools and their concentration. In theory, having multiple mining pools where each pool has a small percentage of the hash rate suggests high decentralization, and therefore greater censorship-resistance for a blockchain.
Although miners globally can participate in virtually any mining pool, they do tend to follow local patterns. This became apparent with the Chinese crypto mining migration, which led to a decrease of 30% and 60% in the Binance and Huobi pools (which have large propositions of Chinese miners).
Last modified 1yr ago