Bitcoin Network Reaches Historic 1 Exahash Per Second Milestone
The Bitcoin network achieves an unprecedented computational milestone as its collective hashrate surpasses 1 exahash per second (EH/s) for the first time in history. This landmark, reached as block 394,914 is mined, represents a quantum leap in the security and resilience of the world’s largest cryptocurrency network.
TL;DR
- Bitcoin network hashrate exceeds 1 EH/s (1,000,000,000,000,000,000 hashes per second) for the first time
- Block 394,914 mined on January 24, 2016, coincides with the milestone
- Antminer S7 deployment drives massive hashrate growth across the network
- BTC price holds steady around $403, up nearly 5% on the week
- Network security reaches levels previously considered unachievable
Breaking the Exahash Barrier
One exahash per second equals one quintillion hash computations every single second. To put this in perspective, the entire Bitcoin network is now performing more calculations every second than there are grains of sand on every beach on Earth. This staggering computational power serves as the backbone of Bitcoin’s proof-of-work consensus mechanism, making it exponentially more expensive and difficult for any malicious actor to attempt a 51% attack.
The milestone comes as Bitcoin trades at approximately $402.97, according to CoinMarketCap data, with the network’s total market capitalization standing at roughly $6.09 billion. The timing of the hashrate breakthrough alongside price stability signals growing confidence in Bitcoin’s long-term infrastructure.
Antminer S7 Fuels the Hashrate Surge
The primary driver behind this exponential growth in network hashrate is the widespread deployment of Bitmain’s Antminer S7. Released in late 2015, the S7 represents a generational leap in mining technology. Each unit delivers approximately 4,850 gigahashes per second (GH/s) while consuming just 0.25 joules per gigahash, making it roughly twice as efficient as its predecessor, the Antminer S5.
The S7 achieves this efficiency through 162 BM1385 ASIC chips per unit, compared to just 60 chips in the S5. Bitmain adopted a full-custom design flow for the BM1385, departing from standard design methodologies. This approach, while more labor-intensive, yields significantly greater power efficiency, which directly translates to improved mining profitability.
Jake Smith, Bitmain’s head of North America, notes that the S7 “squeezes more juice from a smaller, more power efficient package.” The company is already developing its next-generation chip, the BM1387, which is expected to utilize a 16-nanometer process node for even greater efficiency.
Implications for Network Decentralization
While the hashrate milestone is cause for celebration among Bitcoin supporters, it also raises important questions about the centralization of mining power. Bitmain currently stands as the only major ASIC manufacturer selling hardware directly to individual consumers, a position that carries both responsibility and risk.
“We’re very strong believers in keeping Bitcoin decentralized,” says Smith. “Until recently, most mining was done by so-called average users and not by large mining operations. It would be a real shame to see this dedicated group left without options for supporting the network in their own way.”
The concern is legitimate: as mining hardware becomes more sophisticated and expensive, individual miners may find it increasingly difficult to compete with large-scale operations. The deployment of thousands of new S7 units across the network will inevitably push mining difficulty higher, potentially rendering older hardware like the S3 and S5 unprofitable in regions with higher electricity costs.
Mining Economics at the Turn of 2016
With the block reward still at 25 BTC (the second halving, reducing rewards to 12.5 BTC, is expected in mid-2016), miners continue to earn approximately $10,074 per block at current prices. The total network’s daily mining revenue exceeds $1.4 million, providing substantial incentive for continued investment in mining infrastructure.
The block reward halving, expected around July 2016, will cut this revenue in half overnight unless the BTC price doubles to compensate. Many miners are banking on exactly that scenario, and the aggressive deployment of S7 hardware suggests that the industry is positioning itself for continued growth even through the halving event.
Broader Market Context
The 1 EH/s milestone coincides with a broader recovery in the cryptocurrency market. Bitcoin has climbed steadily from its late-2015 lows, gaining nearly 5% over the past week. The total cryptocurrency market capitalization has grown as well, with Bitcoin commanding an overwhelming share of the market.
Litecoin trades at $3.18 with a market cap of $140 million, while Ethereum, still in its early stages with the Frontier-to-Homestead transition underway, sits at $2.14 with a market capitalization of $163 million. The competitive landscape among altcoins remains fragmented, with no serious challenger to Bitcoin’s dominance in sight.
Why This Matters
The 1 exahash milestone is far more than a symbolic achievement. It represents the maturation of Bitcoin’s mining ecosystem from a niche hobbyist activity into a professional, industrial-scale operation. The network’s security is now backed by computational power that rivals some of the world’s largest supercomputing facilities combined. For investors, developers, and users alike, this growing hashrate provides increasing confidence that the Bitcoin blockchain can withstand attacks and maintain its integrity as the foundation of a global financial system. The milestone also sets the stage for the upcoming block reward halving, where the network’s strengthened infrastructure will be put to the test as mining economics shift dramatically.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk. Always conduct your own research before making investment decisions.