What are hash functions and their role in blockchain technology?

What are hash functions and their role in blockchain technology?

Hash functions are algorithms that convert input data into a fixed-size string of characters, which is typically a hash code. In blockchain, they ensure data integrity and security by creating unique identifiers for each block.

How do hash functions enhance security in blockchain?

They enhance security by making it nearly impossible to alter any part of the blockchain without changing the hash of the affected block, which would require recalculating all subsequent hashes.

Can you give an example of a commonly used hash function in blockchain?

Sure! A commonly used hash function in blockchain is SHA-256, which is used in Bitcoin to secure transactions and create new blocks.

What happens if two different inputs produce the same hash?

This scenario is known as a hash collision. While it's theoretically possible, good hash functions are designed to minimize this risk, making collisions extremely rare.

Are there any limitations to using hash functions in blockchain?

Yes, some limitations include vulnerability to quantum attacks and the computational power required for hashing, which can lead to scalability issues.