How Does a Cryptographic Hash Function Ensure Data Integrity?
A cryptographic hash function ensures data integrity because it is deterministic and collision-resistant. Deterministic means the same input always produces the same hash.
Collision-resistant means it is computationally infeasible to find two different inputs that produce the same hash. Therefore, if a single bit of data is tampered with, the resulting hash will change entirely, immediately alerting anyone verifying the data that the original content has been altered.
Glossar
Blockchain Integrity Measures
Attestation ⎊ Blockchain integrity measures, within cryptocurrency and derivatives, fundamentally rely on cryptographic attestation protocols to verify transaction validity and state transitions.
Cryptographic Exchange Design
Architecture ⎊ Cryptographic Exchange Design refers to the structural blueprint of a trading venue that leverages cryptographic primitives to ensure security, transparency, and decentralized control over assets and trade execution.
Block Structure Integrity
Validation ⎊ Block structure integrity mandates that every newly proposed block strictly adheres to the protocol's defined format, encompassing the correct header fields, transaction ordering, and cryptographic proofs.
Reference Index Integrity
Calculation ⎊ Reference index integrity depends on the robustness of the calculation methodology used to determine the index price.
Irreversible Data Integrity Check
Check ⎊ The Irreversible Data Integrity Check is a cryptographic validation process that uses a one-way hash function to verify that a data set, such as a batch of derivatives trades, has not been altered since its initial recording.
Transaction Integrity Maintenance
Assurance ⎊ Transaction integrity maintenance refers to the comprehensive set of technical and procedural safeguards designed to ensure that every on-chain operation, particularly those involving crypto derivatives, executes exactly as intended, resulting in a correct and consistent update to the blockchain state.
Contract Pricing Integrity
Valuation ⎊ Contract pricing integrity refers to the assurance that a derivative's theoretical and observed market prices accurately reflect the underlying asset's true value, appropriately adjusted for time, volatility, and interest rate factors.
Integrity of Blockchain Rewards
Assurance ⎊ The Integrity of Blockchain Rewards refers to the cryptographic and protocol-level assurance that the block subsidy and collected transaction fees are accurately and immutably distributed to the successful miner.
Maintaining Crypto Market Integrity
Surveillance ⎊ Maintaining crypto market integrity requires continuous, sophisticated surveillance to detect and prevent market abuse, including manipulative trading practices like wash trading and spoofing across both spot and derivatives venues.
Cryptographic Attestation
Verification ⎊ Cryptographic attestation, within cryptocurrency and financial derivatives, establishes the authenticity of computational processes and data origins, crucial for trustless systems.