How Does a ‘Hash Collision’ Relate to Blockchain Security?
A hash collision occurs when two different inputs produce the exact same output hash value. In a blockchain, this would mean two different blocks or transactions could be represented by the same hash, potentially allowing an attacker to substitute a malicious block for a valid one.
While theoretically possible, modern cryptographic hash functions like SHA-256 are designed to make finding a collision computationally infeasible, ensuring the integrity and security of the chain.
Glossar
Cryptographic Hash Functions
Hash ⎊ Cryptographic hash functions, pivotal in cryptocurrency, options trading, and financial derivatives, provide a one-way transformation of data into a fixed-size string of characters, termed the hash value.
Hash Collision
Determinism ⎊ A hash collision, within cryptocurrency and financial derivatives, arises when distinct input data produce the same hash value, fundamentally challenging the deterministic nature of cryptographic functions.