1. Describe hash functions with your own words.
Hash function sets data input with a unique output, it is a one way-way mechanism gauranteed through mathematical equations. It does not allow reversal of a new hash, meaning you cannot use the output to figure the 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).
Bitcoin and other cryptocurrencies uses hash functions that also utilizes proof of work combined with SHA-256 to obtain mathematical traceability and unbreakability. For every input, it produces a unique output, gives the computation fast, cannot be reverse and can only be solved in a linear undirectional manner.
3. What does it mean when we say that hash functions need to be collision resistant? (We didnāt use the term ācollision resistantā in the lecture, but you will easily find this on Google, we add this question intentionally to make you research information on your own, thatās how you learn best).
It means a hash function is collision resistant if itās hard for 2 inputs to hash the same output.