Can you explain the process of how SHA-256 works in verifying Bitcoin transactions?

3 answers

• Dec 26, 2021 · 3 years ago
  Sure! When a Bitcoin transaction is made, it needs to be verified by the network. This verification process involves using the SHA-256 algorithm. First, the transaction data is collected, including the sender's address, the recipient's address, and the amount being sent. Then, this data is combined and hashed using SHA-256, resulting in a unique hash value. This hash value is then added to the transaction data and hashed again. The resulting hash value is called the transaction ID. This ID is what is used to identify and track the transaction on the blockchain. By using SHA-256, the transaction data is securely encrypted and cannot be tampered with.
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• Dec 26, 2021 · 3 years ago
  Absolutely! So, when a Bitcoin transaction is initiated, the transaction data is first collected. This data includes the sender's public key, the recipient's public key, and the amount being transferred. Next, SHA-256, which is a widely used cryptographic hash function, is applied to this data. The SHA-256 algorithm takes the transaction data as input and produces a fixed-size output, which is a unique hash value. This hash value serves as a digital fingerprint for the transaction. It is then added to the transaction data and hashed again to create the transaction ID. This ID is what is recorded on the blockchain and used to verify the transaction's integrity. By using SHA-256, Bitcoin ensures that the transaction data remains secure and cannot be altered without detection.
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• Dec 26, 2021 · 3 years ago
  Of course! When it comes to verifying Bitcoin transactions, SHA-256 plays a crucial role. Here's how it works: First, the transaction data, including the sender's address, the recipient's address, and the amount, is collected. This data is then processed through the SHA-256 algorithm, which generates a unique hash value. This hash value is like a digital fingerprint for the transaction. It is added to the transaction data and hashed again to create the transaction ID. This ID is what is stored on the blockchain and used to confirm the transaction's validity. By utilizing SHA-256, Bitcoin ensures that the transaction data remains secure and cannot be tampered with. It's an essential part of the cryptocurrency's security and trustworthiness.
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