Hash
A hash is a function used in the process of cryptocurrency mining. It acts as a digital fingerprint for each block on the blockchain, ensuring that no data within it has been tampered with or modified in any way. A hash is created by taking an input of any size and running it through an algorithm which produces an output of a fixed length. This output is known as the “hash” and its purpose is to uniquely identify the transaction or data set being represented. The most common type of cryptographic hash used in cryptocurrencies today is SHA-256, but other algorithms such as SCRYPT are also utilized by certain coins.
The hashing process involves taking large amounts of data and condensing them down into a single string (or “hash”). This process helps secure transactions on the blockchain because if someone were to change even one character within a block, then the resulting hashes would be completely different from those originally stored on the network. By comparing these two values, miners can determine whether or not any alterations have been made to their blocks before they become part of the main chain – thus protecting against malicious actors attempting to manipulate transactions for their own gain.
In addition to acting as fingerprints for blocks on the blockchain, hashes are also used within Proof-of-Work consensus algorithms like Bitcoin’s Nakamoto Consensus Protocol (NCP). In NCP, miners must complete complex mathematical puzzles before they can add new blocks onto existing chains; this puzzle solving requires substantial computing power and serves as proof that miners have done enough work to earn rewards for their efforts. As such, when attempting to mine coins using NCP protocol all miners must generate hashes until they find one which meets specific criteria determined by the network difficulty level at that time; only upon finding this correct hash will they be able to add new blocks onto existing chains and receive rewards accordingly
