- Describe hash functions with your own words
In Hash Functions, each unique input produces one unique output. Each unique input entered provides a unique output. In an âun-crackedâ Hash Function, you can go from the input to the output, but provided the output, you cannot decipher the input. Hash functions are strictly one-way functions.
- How are hash functions used in cryptocurrencies like bitcoin?
âCryptographicâ hash functions are to be distinguished from hash functions in that they make it much more difficult to decipher the contents of a message. The hash function used by Bitcoin is SHA-256. The miners must use brute force to continuously generate random characters and numbers to eventually crack the hash algorithm. When this is achieved, bitcoins are rewarded by the blockchain. The time, computer power, and electrical energy expended is what drives the price that miners expect to receive from the bitcoins they mine.
- What does it mean when we say that hash functions need to be collision resistant?
Collision resistance aims at making it more unlikely that two different inputs will result in the exact same output. This potential occurrence is explained by the âbirthday paradox.â The birthday paradox states that in a group of x people, there is a probability that two or more people will have the same birthday. This is analogous to two totally different phrases generating the same hash value. If this is prevalent, then the hash is not as secure as expected, and can be cracked more easily than previously imagined. I think that the way of helping to amend this potential weakness is via the property of âPuzzle Friendlyâness.
I f collision resistance is not achieved, then the hash function (in this instance SHA-256) would be considered no longer effective. It would be rendered ineffective because it can be cracked by methods other than brute force, leading it to be cracked faster.