Bitcoin Network Computational Power

The Bitcoin Network infrastructure is provided by miners, who exert large amounts of
computational power in finding a block solution that will allow them to add a new block to the
Blockchain, thereby validating and clearing all the transactions that are included in that block. A
block solution includes a proof-of-work hash that must meet specified criteria. The Bitcoin proof-
of-work algorithm uses the SHA-256 variant of Secure Hash Algorithm 2 and requires a specific
set of randomly generated zeroes in the solution.

Miners operate computer chips known as application specific integrated circuits (ASICs), which
are designed for the specific purpose of running SHA-256 hashes on a continuous basis. The
growth in the computational power of the Bitcoin Network was nearly parabolic from 2013 to
early 2015, due to the increase in price of bitcoins (and, therefore, the block reward earned by
miners) and improvements in bitcoin mining technology. Prior to 2014, Bitcoin miners relied on
central processing unit (CPU) and graphical processing unit (GPU) technology found in standard
computers. CPU and GPU processors were significantly less powerful and efficient at running
SHA-256 hashes, resulting in a significant boom in computing power on the Bitcoin Network
upon the introduction of ASIC units. Although the purpose of the ASICs is limited to running SHA-
256 hashes, it is often cited that the Bitcoin Network is the most powerful computer network in
the world.