- Describe hash functions with your own words:
Hash functions are one-way functions, follow certain mathematical algorithm, with any input, get fixed size output.
- How are hash functions used in cryptocurrencies like bitcoin? (Try to research this on your own, we will cover this later in the course but challenge yourself and see if you can find information on this already now).
Cryptocurrencies like bitcoin, the transactions are taken as an input and run through a hashing function which gives an output of a fixed length.
- What does it mean when we say that hash functions need to be collision resistant? (We didn’t use the term “collision resistant” in the lecture, but you will easily find this on Google, we add this question intentionally to make you research information on your own, that’s how you learn best).
Collision resistant means: given two different inputs A and B where H (A) and H (B) are their respective hashes, it is infeasible for H (A) to be equal to H (B).
For cryptocurrencies, hash functions have to follow this property. Otherwise the output can’t be unique.