SHA-256 Hash-Algorithm: Cryptocurrency

SHA-256

SHA-256 (Secure Hash Algorithm) is a cryptographic hash (sometimes called ‘digest’).

SHA-256 is a member of the SHA-2 cryptographic hash functions designed by the NSAgov.

Cryptographic hash functions are mathematical operations run on digital data, SHA-256 generates an almost-unique 256-bit (32-byte) signature.

By comparing the computed "hash", (the output from execution of the algorithm), to a known and expected hash value, a person can determine the data's integrity.

A one-way hash can be generated from any piece of data, but the data cannot be generated from the hash. 

Example: 'ba7816bf8f01cfea414140de5dae2223b00361a396177a9cb410ff61f20015ad' 

is a SHA-256 hash for text 'abc'

See also Trezor Cryptography

SHA-256 in Bitcoin

SHA-256 is used in several different parts of the Bitcoin network:

• Mining uses SHA-256 as the Proof-of-work algorithm.
• SHA-256 is used in the creation of bitcoin addresses to improve security and privacy.

SHA-256 in Trezor

SHA-256 is used in Recovery seed creation.

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