Target Hash

In the wild, wild west of cryptocurrency mining, a target hash is an important number. When you “mine” successfully, you are awarded a new block, aka crypto money. That means you work (mine) to get paid (new block). Like the goldrush! YEEE-HAAA!

This mining is basically highly equipped computers doing a lot of calculations, trying to crack a code. Each time the code is cracked and someone is awarded a new block, the next code to crack for the next block to be awarded is even harder to get. As more and more blocks get created and awarded, it gets more and more difficult. It’s like a race that only gets harder for everyone involved.

One of the reasons it gets so difficult? The target hash. You can think of the target has as a number that’s a limit. To crack the code successfully, your answer has to be less than or equal to the target hash. If it’s longer than the target hash, it doesn’t count as a viable answer.

Why the target hash? Why make it increasingly difficult to get new cryptomonies?! Think of it as a way to control the money supply. If everyone could just create their own money easily, it would end up being worthless. It’d be like everyone printing out their own dollar bills in their houses—inflation would go up, and the dollar would be worthless. This town just ain’t big enough for an unlimited money supply. So, the target hash is the tech-y, blockchain way of controlling cryptocurrency money supply.