How Does a Cryptographic Hash Function like SHA-256 Differ from an Encryption Algorithm?
A cryptographic hash function is a one-way function; it is easy to compute the output (hash) from the input data but computationally infeasible to reverse the process and get the original data back. Encryption, conversely, is a two-way process; data is scrambled (encrypted) using a key and can be unscrambled (decrypted) back into its original form using the corresponding key.
Hashing ensures data integrity and proof-of-work, while encryption ensures confidentiality.
Glossar
Cryptographic Hash Function
Computation ⎊ The core function of a cryptographic hash function demands significant computational effort, particularly within Proof-of-Work systems.
Encryption
Cryptography ⎊ Encryption is the mathematical process of encoding information, known as plaintext, into an unreadable format, or ciphertext, using an algorithm and a cryptographic key.
Cryptographic Hash
Function ⎊ A cryptographic hash is a mathematical algorithm that transforms an input of arbitrary size into a fixed-size string of characters, known as a hash value or digest.
Asymmetric Encryption
Cryptography ⎊ Asymmetric encryption, fundamental to secure communication within cryptocurrency ecosystems and financial derivatives trading, employs a key pair ⎊ a public key for encryption and a private key for decryption.