- Describe hash functions with your own words
It’s a linear function where a certain input creates a certain unique output, and the process cannot be reversed. That means, the output cannot be broken down to the original input. THis creates a unique output for every unique input, and if the input changes just a little bit, the output is completely different.
- 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).
They are used to create unique, secure keys/digital fingerprints (such as private keys) that nobody can break down (or it’s very difficult, almost impossible, to do) and this provides safety and security for Bitcoin and the users/investors/traders. And it provides data integrity as well.
- 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).
It’s very difficult to find a hash function where a two different inputs create the same output.