How Does a Change in One Bit of Input Affect the Hash Output?
A change in a single bit of the input data will result in a completely different hash output due to the 'avalanche effect,' a key property of cryptographic hash functions. This effect ensures that even a tiny modification to a transaction (e.g. changing one digit of the amount) results in a drastically different, unpredictable hash digest.
This property is crucial for the integrity check provided by ECDSA signatures, as the original signature will immediately fail verification against the new hash.
Glossar
Non-Repudiation
Attestation ⎊ Non-repudiation, within cryptocurrency, options, and derivatives, fundamentally establishes irrefutable proof of origin and receipt of a transaction or action, mitigating counterparty risk and bolstering trust.
Hash Output
Derivation ⎊ A hash output, within cryptocurrency and financial derivatives, represents the deterministic result of a cryptographic hash function applied to an input dataset.
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.
Avalanche Effect
Trigger ⎊ The avalanche effect, within cryptocurrency, options, and derivatives, describes an initial market movement ⎊ often stemming from a large order or news event ⎊ that instigates a cascade of further, often automated, reactions.