How does SHA-256 contribute to the security of digital currencies?

3 answers

• Tanvir AhamadAug 11, 2022 · 3 years ago
  SHA-256, which stands for Secure Hash Algorithm 256-bit, is a cryptographic hash function used in digital currencies like Bitcoin. It plays a crucial role in ensuring the security of transactions. When a transaction is made, the SHA-256 algorithm takes the transaction data and creates a unique hash value. This hash value is then added to the blockchain, which is a decentralized public ledger. By using SHA-256, digital currencies can achieve immutability and integrity. The hash value acts as a digital fingerprint, making it virtually impossible to alter the transaction data without changing the hash value.
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• McCurdy EriksenJun 07, 2023 · 2 years ago
  SHA-256 is like the guardian angel of digital currencies. It protects transactions from being tampered with and ensures that the records are accurate and trustworthy. When a transaction is created, SHA-256 takes all the transaction data, such as the sender, recipient, and amount, and turns it into a fixed-length string of characters, known as a hash. This hash is unique to the transaction and acts as its digital signature. Any change in the transaction data will result in a completely different hash, making it easy to detect any tampering. This makes digital currencies secure and reliable.
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• KoKi SaiToOct 07, 2024 · 10 months ago
  SHA-256 is a critical component of digital currency security. It provides a high level of cryptographic protection by generating a unique hash value for each transaction. This hash value acts as a digital fingerprint, ensuring the integrity and authenticity of the transaction data. Even a small change in the transaction details will result in a completely different hash value, making it virtually impossible to alter the transaction history without being detected. SHA-256 is widely adopted in the digital currency industry, including by BYDFi, to ensure the security and trustworthiness of transactions.
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