As a part of explaining complex blockchain processes in simple terms to the mainstream audience, this article will delve into the hashing algorithms. We will check what a hash is and how it functions, and get into different applications.
We are moving towards an era where there are chances for the emergence of potential quantum computing programs that can hack blockchain networks. This article will also discuss the quantum issue, along with other threats like the climate crisis in relation to hashing.
What Is A Hash?
Hash is a unique identity or a digital fingerprint created by converting a set of letters or numbers into another distinctive set of letters and numbers through a mathematical process called hash function. Every input gives a unique hash that is impossible to reverse and find the original input, which makes it a critical component in the security of blockchain technology.
Hashing is different from encryption because it is irreversible. Encryption usually converts the input into a secret code that can be deciphered using a decryption key. Users cannot retrieve the original input from the hash, and no matter the length of the input, it will always give the hash of a fixed length.
What Are The Uses Of Hashes?
Hash functions are commonly used to check the data integrity. It can be used to secure passwords and create digital signatures. By providing hash values to all the files, messages, and transactions, we can ease various processes like searching, comparison, data compression, and retrieval.
Blockchain technology uses different types of hashing algorithms in generating wallet addresses, deploying smart contracts, storing data, and the issuance of passwords. Although various blockchain platforms have migrated to Proof-of-Stake algorithms that don’t need many hashing processes, these algorithms are still used extensively in traditional blockchains like Bitcoin.
Different Types Of Hashing Algorithms
In the history of computer technology, various hashing algorithms were developed, and the most successful of them co-exist today. Here are some examples to get a basic idea:
- SHA: The Secure Hash Algorithms, made by the National Institute of Standards and Technology (NIST), are mainly used throughout the crypto blockchains including Bitcoin. Developed first around 1993, these algorithms are widely used by networks around the world.
- MD5: Developed by Ronald Rivest in 1991 as an updation to MD4, it was initially used to authenticate files. It is being replaced by SHA algorithms like SHA1 and SHA256 because of issues like hash collision and preimage attacks.
- RIPEMD-160: As the most common algorithm in the family of RIPEMD, it is designed as an extra addition to already secure applications to enhance the hash length. It was used by Satoshi Nakamoto in Bitcoin.
How Does The Bitcoin Hashing Work?
Bitcoin uses a Secure Hash Algorithm (SHA-256) for hashing where it creates a unique string of 64 characters from the input. It also uses the RIPEMD-160 to compress these SHA-256 hashes into a shorter format, adding an extra layer of security and manageability.
Bitcoin’s Proof-of-Work algorithm consists of miner computers that use the Bitcoin node to generate hashes in a block. The miner that solves the hash first will receive BTC as a mining reward. The current BTC hash rate is 807.89 EH/s (exahash per second) and the mining reward per block is 3.125 BTC.
Is Quantum Computing A Threat To Hashing? Can Crypto Survive Quantum Attacks?
A machine with high computing power can find the input data from a hash. However, that type of machine has not come into existence yet. Various strategies and innovations are emerging to counter potential quantum computer attacks in the future, including the hard-fork function proposed by Ethereum’s co-founder Vitalik Buterin.
Theoretically, a quantum computer can solve a hash within seconds which will take hundreds of years for a traditional computer to solve. Apart from the blockchain environment, this poses threats to all securities including high-end government encryptions.
Final Thoughts: Hashing And Climate Crisis
The emergence of hashing algorithms that promise security and privacy has paved the way for the invention of nuanced technologies and networks like blockchain. However, it is time to jump into another upgrade about concerns such as climate change and quantum computing.
Despite the transformative impact it has made, hashing consumes large amounts of electricity, especially during the blockchain mining process. Web3 enthusiasts around the internet hope for the arrival of new hashing algorithms that can decrease the computational intensity.
