Function of Hashing algorithm in Blockchain
Blockchain is the technology which provide the platform for cryptocurrency. Cryptocurrency is a kind of virtual currency. These may be bitcoin, Ethereum and ripple etc. When we talk about transaction of these currency the security is the main concern. Is our data is secured or not which we transferred. To overcome this problem blockchain technology is used the hashing algorithm.
Bitcoin blockchain uses the SHA-256, hashing algorithm. Now question is that what exactly a hashing algorithm. Hashing algorithm takes the input randomly. It generates a fixed size outputs. Means it take an infinite length of input, apply some calculation on it and produce a fixed length output. Hashing algorithm always produce an output length of 256 bits.
What function is performed by hashing algorithm in blockchain? Or how's it work on blockchain? We will discuss these things below.
Function of Hashing Algorithm in Blockchain
As we know that blockchain is used a chain of block. When we perform any transaction using blockchain then it’s mandatory to know its state. Now question is raised that how we know about this? To remove this blockchain use hashing algorithm. In hashing algorithm, first hash is calculated for first block. Here hash represent the current state of the blockchain. This hash value is pass to next block. In this block it will add previous hash value in it and pass it to next block. This sequence is continuously followed for every blocks present in a chain. This process will also create a chain of hash.
This process will keep safe from tampering the result. And it also provide an easy access to remove any error if it present in a chain. This is because of we have information about every hash value. So we can compare it from previous hash value of block.
Hashing algorithm is secure because it use every time a new key. A key that may be a random number. It is passed to every block and it is known to sender side. Recipient side another key is already given which can be used at to decrypt the information. And receiver will be able to receive that information. These all process make blockchain secure strongly. This method is beneficial to our business. We keep our information safe and private.
This is all process of hashing algorithm used in blockchain. Blockchain also used the technique of digital signature. These two things makes the blockchain safer. Digital signature is different form normal signature. It is more secure from normal signature. Because in this method we use encryption method to make it secure.