1. Describe hash functions with your own words
Hash function is a mathematical formula. Every input gets a fixed output, it is one way algorithm, which makes it safe and almost irreversible.
2. 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).
Hash functions are ideal for creating digital signatures or digital keys. The hash outputs are used to create the chains in the blockchain. They are all linked together and based on one another and ensure integrity in the blockchain. If someone tries to meddle and makes the smallest changes in the data, the whole block will change and become invalid.
3. What does it mean when we say that hash functions need to be collision resistant? (We didnât use the term âcollision resistantâ in the lecture, but you will easily find this on Google, we add this question intentionally to make you research information on your own, thatâs how you learn best).
When it is hard to find more than one input to hash the same output, the function is collision resistant. Every input must have its own unique output, like in SHA256, where collisions havenât been found yet.