• MARKET
Market Cap:
$3.30 T
24h Volume:
$74.22 B
Dominance:
56.61%

SHA-256

SHA-256 Key Points

  • SHA-256 stands for Secure Hash Algorithm 256-bit, a cryptographic hash function.
  • It is used extensively in blockchain technology, specifically in Bitcoin mining and transaction verification.
  • SHA-256 generates an almost-unique 256-bit (32-byte) signature for a text.
  • It is part of the SHA-2 (Secure Hash Algorithm 2) family, developed by the National Security Agency (NSA) in the United States.
  • SHA-256 is deterministic, meaning the same input will always produce the same output.

SHA-256 Definition

SHA-256 (Secure Hash Algorithm 256-bit) is a cryptographic hash function that takes an input (or ‘message’) and returns a fixed-size string of bytes, typically a 256-bit (32-byte) hash value. It is a key component in ensuring the security and integrity of data in cryptocurrencies and other digital technologies.

What Is SHA-256?

SHA-256 is a hash function that is used in cryptography. It is one of the hash functions in the SHA-2 (Secure Hash Algorithm 2) family. The number 256 in the name denotes the bit length of the hash value or digest.

The function generates a nearly unique output for each unique input. This makes it useful for creating digital signatures, password security, and ensuring data integrity in blockchain technologies.

In the context of Bitcoin, SHA-256 is used in the creation of new blocks in the blockchain and in the process of mining.

Who Uses SHA-256?

SHA-256 is widely used by developers, cryptographers, and security experts across various industries.

It is most famously used in the Bitcoin network, where miners use the SHA-256 hash function to secure the network and add new blocks to the blockchain.

Other cryptocurrencies, such as Bitcoin Cash and Bitcoin SV, also use SHA-256. Beyond cryptocurrencies, it’s used in Secure Socket Layer (SSL) certificates and Transport Layer Security (TLS) protocols to secure web communications.

When Was SHA-256 Developed?

The SHA-256 algorithm was developed by the National Security Agency (NSA) in the United States. It was published by the National Institute of Standards and Technology (NIST) in 2001 as a Federal Information Processing Standard (FIPS).

Where Is SHA-256 Used?

SHA-256 is used predominantly in digital applications and systems that require high levels of security.

Most notably, it is used in blockchain and cryptocurrency technologies, such as Bitcoin, where it is critical for the process of mining and transaction verification.

Beyond this, it is also used in many types of information security applications and protocols, including SSL and TLS for securing the internet.

Why Is SHA-256 Important?

SHA-256 is crucial for maintaining the integrity and security of digital data.

Its deterministic nature ensures that any change, no matter how minor, in the input data, will result in a completely different hash output. This makes it extremely difficult for malicious actors to alter data without being detected.

In the context of cryptocurrencies, SHA-256 is critical in preventing double-spending and ensuring the overall security and reliability of the blockchain.

How Does SHA-256 Work?

SHA-256 works by taking an input and running it through a series of mathematical operations and transformations.

These operations are designed to be one-way, meaning that they are easy to perform but extremely difficult to reverse. This results in a fixed-length, almost unique hash output.

The same input will always produce the same hash output, while even a small change in the input will produce a drastically different output. This makes it extremely difficult to guess the input based on the hash output, providing the high level of security that SHA-256 offers.

Read More Insights