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What is the role of hashing in blockchain technology?

Hashing has a greater role in the blockchain to ensure "no fraudulent transactions", "no double spending" etc. So hashing is a key component to assure reliability of blockchain technology.

Hashing uses a mathematical algorithm to turn an input into a cryptographic output. Input can be a piece of information or a text or a message or a transaction etc. The reliability & security is centered around hashing mostly in blockchain technology. 

The most important aspect of hashing is that it secures the data. It has the following important characteristics which ensures that required degree of security-

  1. It is impossible to produce same hash value for different inputs. 
  2. It will produce the same hash value for the same message.
  3. It can quickly produce a hash of any input. So it ensures efficiency.
  4. It is not possible to determine the input based on the hash value. This is what is the most important feature of hashing in securing the blockchain technology.
  5. It ensures that the data is not tampered and it is meant for the intended recipient.

In blockchain technology, the hashes represent the state of the blockchain.  The input represents everything that has happened on a blockchain, so every single transaction up to that point, combined with the new data that is being added. What this means is that the output is based on and therefore shaped by, all previous transactions that have occurred on a blockchain.

Further it must also be noted that even a slightest change in the input will result in a different hash. So changing any record which has already happened previously will change all the hashes, thereby making them false and obsolete. This further becomes impossible when the blockchain is a transparent public ledger. 

All the transactions which are processed are used as an input to create a hash and that is used as block and all the subsequent blocks just follow same and are linked to the previous block, forming a chain block. So in this way hashing plays its part in blockchain technology and the transactions are added securely as long as the nodes in the network are in consensus.


What is the difference between mining & forging? In my opinion, the difference between mining and trading is that if you mine a crypto coin in one of the companies that receive mining services, then this is also called the mining process. However, if you save your crypto coin assets until the price crawls up compared to the previous one on a platform or exchanger that provides trading services from your coins, the process is also called trading or saving assets.

We have encountered a lot of web investments that provide mining and trading services, the profits that get also vary depending on the company. But if you want to mine your current coin assets, you have to be very clever in choosing a web investment because currently there are only a lot of web investments that just want to reap profits from the developer, but after many investors deposit funds in their company, they even disbanded the investment project they had built without losing track.

And if you want to trade in one of the web investments, you must be careful and careful in choosing the web trading that you will use for your trading. If you are not careful in choosing a web investment then you will experience a lot of losing your capital if you are not careful in choosing a web investment. Because nowadays we have encountered a lot of web investments that are only made as material to deceive many people who play trading with crypto currencies.