Tuesday, June 6, 2023


by Hideo Nakamura

Underhashing is a term used to describe the act of mining cryptocurrencies using insufficient computing power. This can occur when miners are not using enough hash rate, or when mining algorithms have been designed to require more computing power than what is available.

When underhashing occurs, it leads to low block rewards for miners and difficulty in finding valid blocks due to the lack of computational resources being directed towards the network. As a result, it can lead to decreased profitability for miners who are relying on that income as their primary source of income. Additionally, underhashing can create additional security vulnerabilities since fewer hashes mean less competition between miners which makes it easier for malicious actors to launch 51% attacks or double spend coins from the same address.

In order to prevent this problem from occurring and ensure optimal performance, cryptocurrency networks must be properly secured with sufficient hashing power; otherwise they become vulnerable and unreliable for users who wish to transact with them safely and securely. To achieve this goal, many cryptocurrency networks allow users and businesses alike access hashing power through cloud-based services in order to scale up their operations without needing significant upfront investments in hardware or software solutions themselves.

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