Why Did Bitcoin Choose SHA-256?
SHA-256 was chosen because it is a well-established, highly secure cryptographic hash function standardized by the U.S. National Security Agency (NSA). Its widespread use and proven resilience against collision attacks made it a reliable choice for the integrity of the blockchain.
Furthermore, the algorithm was public, allowing for open-source verification and trust. It provides the necessary difficulty adjustment for the Proof-of-Work mining process.
Glossar
Bitcoin
Asset ⎊ Bitcoin, fundamentally, represents a decentralized digital asset leveraging cryptographic principles to secure transactions and control the creation of new units.
DID
Attestation ⎊ Decentralized identifiers (DIDs) within cryptocurrency and financial derivatives represent a verifiable digital identity, moving beyond centralized authorities to establish trust through cryptographic proofs.
Cryptographic Hash Function
Computation ⎊ The core function of a cryptographic hash function demands significant computational effort, particularly within Proof-of-Work systems.