Debunking the Value and Functionalities of Ethereum’s hashing token — EHash

6 min readApr 8, 2021

In the past, cryptocurrency mining was set for the chosen few. For instance, when PoW was introduced to mine bitcoin, only technically knowledgeable and resourceful miners would enter into this capital intensive industry. Those who were early movers have now become millionaires, and those who followed equally lined their pockets but with this avid development in mining, the industry has evolved to allow for average traders to earn mining rewards and by holding hashing coins, they could participate in the governance of a blockchain. To put this into perspective, EHash is one of such a hashing token that is an early mover into the third generation of cryptocurrency mining where no mining equipment or cloud computing is a prerequisite to earning the mining reward. However, while this type of mining is in its infant stage, EHash already deploys the most innovative characteristics on the market to its advantage including the use of smart contracts to distribute rewards and ensuring that the hashing power supporting each EHash is publicly available and checkable online.

In this article we will discuss how Hashing rate works and where does EHash fits. But before diving into that, it is important to understand what EHash is and where its value lies. Currently, Bitcoin and Ethereum use PoW blockchain. This means that for a transaction to be processed and move on to the next block, certain computational power should be expensed and miners compete to solve a difficult mathematical problem. The solution to this problem is presented as a fixed length alpha-numeric code known as “hash” and the miners should compute a hash that is less than or equal to the “target hash.” The hashrate therefore, is the total computational power being used by the mining machines to process transactions on the PoW blockchain network. After each block is solved, free coins known as block reward are given to the miner who guesses the correct target hash.

Why Hashrate is important?

In a PoW blockchain network, Satoshi Nakamoto first proposed the idea that the system is secure as long as honest nodes collectively control more CPU power than any cooperating group of attacker nodes. Thus, for attackers to surpass the network of honest nodes, they will have to redo all the PoW of all blocks and surpass them — which is much harder than just cooperating with growing a network of honest nodes and receiving the corresponding rewards. In short, the more computational power is devoted to a network, the safer and more resilient the network becomes. We can deduce that hashrate is what keeps any blockchain network free from attackers. So an obvious question would be how much hashing power is sufficient to protect a network? Well, there is another element attached to hashing power that we haven’t discussed. It is called the level of mining difficulty. The goal here is to adjust the time it takes to solve a block so much that enough computational power is used. The only metric that could be adjusted is the level of mining difficulty. As you can already foresee, if the mining difficulty is low, the hashrate will also be low and this increases the risk of attacks on the network. The opposite is true. Another case that drives computational power up is the price of the coin. For example, if Ethereum price goes up, more miners will switch to support mining Ethereum, thereby driving the hashrate up.

The explanation above is not complete without pinning down on the numbers to get a better understanding. Currently it takes an average of 10 to 20 minutes to solve a block on bitcoin network whereas it takes 10 to 20 seconds on Ethereum network. The Ethereum network is faster than bitcoin’s and miners get rewarded quickly. So how much hashrate is used then?

How hashrate is calculated

The hashrate on Ethereum has been growing constantly over the years as new miners continue to join in. The Ethereum hashrate is calculated as a function of the level of mining difficulty, the average time it takes to solve a block and the effective block find time of the preceding block. In essence, the hashrate reflects the performance of overall miners in the network. This mining performance is measured in hashes per second, normally written as (h/s). To get familiar, let’s look at some of the everyday notation that is used. 1kH/s is equivalent to 1000 hashes per second; and 1MH/s is equivalent to 1000kH/s which is equivalent to 1 million hashes per second. What does this all mean? So suppose you have one Nvidia 1070 Ti graphics card, it has an approximate hashrate of 31 MH/s. It means that it is calculating 31 000 000 hashes per second. Currently, Ethereum hashrate is 489.79TH/s (TeraHash) which is equivalent to 490 trillion hashes per second. That’s a huge number, isn’t it? Well, that is the reason we use simple notations!

How EHash relates to Ethereum hashrate

At least by now you have an understanding of hash, hashrate, level of mining difficulty and how this relates to PoW blockchain networks. Having done the background work we can now introduce EHash. EHash is the hashing token on Ethereum network. In simple terms, this means that EHash represents the hashrate on Ethereum chain. Each EHash corresponds to 0.01 MHash/s of Ethereum PoW hashing power. Well, we can break this down to say each EHash corresponds to 10 000 hashes. Remember a hash is a ‘solution’ to the difficult mathematical problem that is expressed as a fixed length alpha-numeric code. Using this approach, you will not need to have Nvidia 1070 Ti graphics cards to mine Ethereum in order to produce hashing power. You can simply hold EHash instead.

Since we discussed hashrate above, you might be wondering how much EHash is out there? That’s a fair question to ask. It turns out that on Ethereum network, the total hashing power is about 390 000GH and 1GH =1000MH, or 1 billion hashes. Now you can appreciate that using simple notation keeps the numbers relatable. As each EHash is tethered to 0.01MH/s, the initial issuance of 20 000 000 EHash corresponds to 200 000M only. This is a small portion of the total hashing power on Ethereum blockchain.

What will happen to EHash if hashing power increases?

If the hashing power tethered to the Mining Pool that’s backing the current 200 000MH/s increases, EHash supply will be increased too by a corresponding factor to keep the supply and conversion balanced. The opposite is also true if hashing power decreases. To make it easy to understand, suppose the hashing power increases by 100 000MH/s to a new total supply of 300 000MH/s, the amount of EHash will also be increased by an additional factor of 10 0000. To best put it, the supply of EHash is unlimited. The actual hashing power tethered to EHash is checkable in real time here .

EHash mining reward and APY determination

Launched in the beginning of March, 2021; EHash is tradable on CEX and DEX. We have a step by step tutorial on how you can own EHash and earn the mining reward here.

On any given day, the amount of ETH mining reward distributed by smart contract to a certain address is given by: ETH_reward_in_day(t)*80%*EHash_snapshot_in_day(t)/Total_EHash_Supply. Snapshot refers to the amount of EHash a user holds on that specific day. Note that 20% of the mining reward is deducted as all inclusive maintenance fee.

The APY is determined based on ETH price, EHash price and daily ETH block reward/M. The formula is given as: daily_ETH_reward/M×ETH_Price×0.01÷EHash_Price×365

To bring this into perspective let’s look at the numbers one last time. We mentioned earlier that total Ethereum hashing power is around 390 000 000Mh/s the average daily mining reward per Mh/s is 0.00007668ETH which is around $0.11.

Annual percentage return is approximately 38.75% and monthly return is around 3%. The rest of the data regarding EHash price and hashing rate on Ethereum chain is also publicly available on EHash website.

In summary, we unveiled the nitty-gritties of hash and hashrate as it relates to PoW blockchains such as Ethereum and Bitcoin networks. We then introduced EHash, a hashing token on Ethereum chain which has several advantages. To learn more about these advantages, click here.

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