How does the hash function work in cryptocurrency mining?

1 answers

• Boone HobackSep 21, 2023 · 2 years ago
  In cryptocurrency mining, the hash function is like a puzzle that miners need to solve. It takes the input data and produces a unique hash value. Miners compete to find a hash value that meets certain criteria, and the first miner to find the correct hash value gets to add a new block to the blockchain and receive a reward. The hash function ensures the security of the blockchain by making it computationally expensive to modify past transactions. It also helps in verifying the integrity of the data stored in the blockchain. The hash function used in cryptocurrency mining is typically SHA-256, which is a widely used cryptographic hash function.
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