- Describe hash functions with your own words
A hash function is a mathematical function that converts a numerical input into another compressed numerical value. These values that are returned by a hash function are called the message digest or basically the hash values.
- How are hash functions used in cryptocurrencies like bitcoin?
The bitcoin protocol uses hash functions as part of the block hashing algorithm which used to write the new transactions into the block chain through the mining process.
- What does it mean when we say that hash functions need to be collision resistant?
Collision resistance is property of cryptographic hash function. Collision resistance does not mean that no collisions exist; simply that they are hard to find. Essentially meaning that two of the same inputs would unlikely ever create the same output.