1. Describe hash functions with your own words
Hash Functions are the single (digit) symbols/numbers/letters that when combined in a series acts like a unique âfingerprintâ for each unique input that gives a unique output. It can go from input to output but NEVER the reverse. Bitcoin uses SHA 256 as itsâ Hash Function as it is secure, unlike the insecure and therefore no-longer utilized , MD5. The MD5 is insecure because it has been hacked when someone figured out how to go from Output to Input.
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 used in cryptocurrencies like bitcoin in that it can input some text and can hash it. It is represented by a certain base number ( like base 16 or base 54) and this base number makes the hash more secure. Bitcoin uses a hexadecimal (base 16). Hence, each input will produce the same output and thereby functions as a Data Integrity Check.
.
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).
Hash functions need to be collision resistant means that if something is broken, ti can go from output to input. Hence, to break the Bitcoin, it would have to go to the initial input. Also, In cryptography, collision resistance is a property of cryptographic hash functions: a hash function H is collision-resistant if it is hard to find two inputs that hash to the same output; that is, two inputs a and b where a â b but H ( a ) = H ( b ).[1]:136 The pigeonhole principle means that any hash function with more inputs than outputs will necessarily have such collisions;[1]:136 the harder they are to find, the more cryptographically secure the hash function is.