In blockchain, a hash is a digital fingerprint of data.
It’s a unique, fixed-size string generated by a hash function.
Hashes ensure data integrity. Even a tiny change in data results in a completely different hash.
Blockchain uses hashes to link blocks securely.
Each block’s hash includes the previous block’s hash, creating a chain.
Popular hash functions include SHA-256.
Hashes are crucial for verifying data and preventing tampering.
This linking mechanism is what makes blockchains so secure. If someone tries to alter the data in a block, the hash of that block will change. This change will then cascade down the chain, invalidating all subsequent blocks because their stored “previous block hash” will no longer match. This makes any unauthorized alteration immediately detectable.
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Key Properties of Hash Functions in Blockchain:
- Deterministic: The same input will always produce the same hash output. This is crucial for ensuring consistency and predictability.
- Pre-image Resistance (One-way Function): It’s computationally infeasible to determine the original input data from its hash. This protects sensitive information.
- Second Pre-image Resistance: Given an input and its hash, it’s computationally infeasible to find a different input that produces the same hash. This prevents malicious actors from creating alternative versions of data with the same hash.
- Collision Resistance: It’s computationally infeasible to find two different inputs that produce the same hash output. While collisions are theoretically possible, a good hash function makes them extremely rare.
How Hashes are Used in Blockchain Technology:
- Linking Blocks: As mentioned before, the hash of the previous block is included in the current block, creating a chain of blocks.
- Verifying Transactions: Hashes are used to create Merkle trees, which efficiently summarize all the transactions in a block. This allows for quick verification that a specific transaction is included in a block without having to download the entire block.
- Digital Signatures: Hashes of transaction data are used to create digital signatures, which prove the authenticity and integrity of the transaction. The sender’s private key is used to encrypt the hash, and the recipient can use the sender’s public key to decrypt the hash and verify that the transaction hasn’t been tampered with.
