Hashing in Blockchain:Explained

Leslie Chally Feb 10 2021 · 2 min read
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Hashing refers to the transformation and generation into a string of a fixed size of input data of any length, which is carried out by a particular algorithm. The Bitcoin hash algorithm, in particular, is 256 bits of SHA-256 or Secure Hashing Algorithm. The implementation of a cryptographic hash function is useful in preventing fraudulent transactions, double blockchain spending, and storing passwords. To put it in context, its hash would also change automatically when there is a change in a hashed file. And each subsequent hash is bound to the previous hash, thereby ensuring that all blocks are consistent.

How does Hashing Work?

The hashing algorithm takes an infinite number of bits, measures them, and gives out a fixed number of bits. No matter the length of the input data, the output will always be rectified. As a consequence, the original knowledge is called data, and a hash is called the final transformation.

To understand about hashing , it is all about datastructures ; which is essentially a way of storing data that has two elements pointers and linked list. Pointers which are indicators that show a way to the right location. Here it provides the address of the next block in the chain. Linked lists make a sequence of the nodes which are connected with the help of pointers.

An original identifier is allocated to each block, which would entail the irreversible effects of changing the blockchain. The block is defined by information that is included in the block header. It consists of details like version number, timestamp, hash pointers , nounce .

To build the block, all these elements are required. So the knowledge will be translated into a unique string within a block when a hash happens to the blockchain.

It starts with solving complex mathematical problems containing data in the block header to solve a hash. But before the process is started by a miner, they will need to perform a trial-and-error method to determine which string to use as a nonce. Miners will concentrate on the nonce (a string number) that is connected to the hashed content of the previous block when a nonce is found.

What is Proof of work?

The PoW idea was intended to counter DDoS attacks that would freeze the device and deny user requests to be processed. PoW also resists spam and protects the whole network efficiently. Although this is not an ideal solution to the issue, this concept is still relatively successful. PoW protects cryptocurrencies as it supports decentralized networks

Proof of Transactions

Users have to validate the behaviour of their wallets, which transfer the transactions to the blockchain, while sending cryptocurrency. The transactions then join the pool of transactions awaiting processing, where they remain until a miner picks them up. Such transactions may be deposited in a large pool or tiny different local pools. From the mining pools, miners select transactions and process them into new blocks. This block contains transactions with additional metadata pending confirmation. Ultimately, each miner forms a distinct block. And the same transactions are allowed to enter the blocks of various miners.

A miner must ensure that any given transaction meets the requirements for execution. If a sender has an appropriate balance of capital, the transaction becomes legitimate and can be added to the block. The sender will raise the mining fee for quicker processing. Miners usually take advantage of the greater value of transactions and pick the most lucrative deals; thus, processing time becomes lower

How Is Hashed Data Being Secured?

With the exception of the Genesis block, each block contains a hash of the previous block (parent block). Imagine a series of blocks having parent block hashes. If the information in one of these blocks is modified, all the other blocks of the chain are affected. However, modifying hashes across all the blocks becomes virtually impossible as the network expands. Therefore, for the blockchain, the hashing process is essential, ensuring the uniqueness and originality of - system feature.

Immutable and trustworthy knowledge is one of the core properties of the blockchain, making it valuable and giving the blockchain colossal potential. The data still stays authentic, thereby deciding the blockchain's credibility.


Blockchain technology has been the most prominent technologies of the last century that have influenced future technology growth. Hashing is a function of cryptography that has empowered this technology. It is important to understand and earn on what hashing is and the nature of technology in a blockchain to mining.

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