Computational Power

Definition ∞ Computational power refers to the aggregate processing capability of a computer system or network, measured by its ability to perform calculations or operations per unit of time. In the context of blockchain, this often relates to the hash rate, which quantifies the number of cryptographic hashes a mining device can compute per second. Greater computational power generally translates to a higher chance of solving a block and earning rewards. This metric is fundamental to network security in Proof-of-Work systems.
Context ∞ In cryptocurrency news, computational power is a frequent topic, especially when discussing the security and decentralization of Proof-of-Work blockchains like Bitcoin. Fluctuations in network hash rate indicate shifts in mining activity and investor sentiment. Reports often cover the increasing demand for specialized hardware to maintain competitive mining operations, highlighting the significant energy consumption associated with securing these networks.