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 β€˜other’ category, while independent miners not connected to any mining pool are classified as β€˜unknown’.

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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).

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