What are Bitcoin hash functions?

What are Bitcoin hash functions?

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With bitcoin becoming considerably more popular as each day goes by, there are still numerous terms that digital currency users or those who are interested in learning more about Bitcoin still do not know. A relevant example in this direction would be a cryptographic hash function, which is a term that bitcoin users often hear.

With this aspect in mind, from an abstract point of view, a hash function can often be referred to as a mathematical process that uses input data of basically any size, in order to perform various operations on it, and which then returns output data of a particular size. Based on this, regardless of the size of the input, the output will always be of the same size. For example, upon creating an account on a website that also requires a password, most of the times, the password will be ran through a hash function and then given out as an output of a specific size. Once you proceed to enter your password, the conversions will be made once again, and the servers will check whether the hashed functions are the same or not.

In Bitcoin, hash functions have an essential importance. With this in mind, they represent a main part of the block hashing algorithm, which is currently being used in order to write all of the new transactions into the public ledger known as the blockchain. This happens during the mining process, as each transaction is checked for uniqueness, double-spending, and authenticity. Based on this, the hash function for bitcoin has gotten significantly more difficult over the years, which is why mining also takes more time, alongside with large processing power from the computers carrying out the mining. With this in mind, to earn bitcoin through mining, computer servers must use huge processing power to carry out all the work necessary in order to solve a complete block, hence getting access to the reward, and earning bitcoin by mining.

Based on everything that has been outlined so far, hash functions for bitcoin play a huge importance in both the mining of bitcoin and other digital currencies, but also in keeping cryptocurrencies secure at safe at all times.