Define “Cryptographic Hash Function.”
A Cryptographic Hash Function is a mathematical algorithm that takes an input (data of any size) and returns a fixed-size, unique string of characters (the hash). It is one-way (irreversible) and deterministic.
In blockchain, it is used for data integrity, creating block headers, and securing transactions, as any change to the input data results in a completely different hash.
Glossar
Hashing
Cryptography ⎊ Hashing functions are foundational to the security of cryptocurrency systems, providing a deterministic transformation of input data into a fixed-size output, crucial for block creation and transaction verification.
Cryptographic Hash Function
Computation ⎊ The core function of a cryptographic hash function demands significant computational effort, particularly within Proof-of-Work systems.
Input Data
Source ⎊ Input data refers to the external information streams, such as price feeds, volatility metrics, or interest rates, that are consumed by smart contracts and algorithmic trading systems to execute financial logic.
Mathematical Algorithm
Computation ⎊ This refers to the defined, step-by-step procedure used to solve a specific problem, such as calculating the fair value of an option or generating a cryptographic hash.