Bitcoin is a one-way hash function

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Understanding that Bitcoin is a one-way hash function should make sense because a hash function cannot be reversed. Once you figure this out, it’s hard to think otherwise. The Secure Hash Algorithm or SHA-256 puts Bitcoin in a different lane, where you can share your bitcoin address without risking the safety of your funds. But there is so much more.

A one-way hash function is a mathematical function that generates a fingerprint of the input, but there is no way to generate the original information twice. The genius around a secure hash function is something I’ll cover, but Bitcoin and all of its creation is akin to scrambling an egg. It is a one-way function; Once the egg is cracked, the yolk cannot be put back into the egg and sealed. Once the yolk is cooked in a hot pan, the scrambled egg cannot be put back into the yolk. The Bitcoin algorithm is no different. The base code is essentially set in stone in cyberspace and still works without an administrator at the head of its creation.

In the past, the process of trading and money was complicated and fraught with ethical dilemmas. Africans regarded cowries and glass beads as revered silver, so Europeans flooded the market with these beads. The implications were vast. The increase in counterfeit pearls degraded the value, making it easier to handle for trade. The Romans cut pieces from existing coins in circulation, then used the remaining denominations to mint new coins.

The coins were getting smaller and smaller. Yet the empire continued to expand. Prices rose while the purchasing power of money fell. Which ultimately, over time, caused the Roman economic system to collapse. America is doing the same on a larger scale by increasing the money supply through the bill printer, although the dollar was not pegged to a gold-backed currency after the Nixon shock. This encourages an ever weaker currency where printing worthless paper banknotes is just as damaging.

The first century of the Enlightenment was born from the separation of Church and State. The second century of the Enlightenment will emerge as a result of the separation of money and state. History has shown that any monetary currency cut, suppressed, manipulated or modified will always be exploited by human hands. Bitcoin removes these motives that have corrupted emperors, politicians, investors, and bankers, thus easing the road to serfdom. The hash function of SHA-256 and RIPEMD-160 helps to completely remove exposure and input levels via public and private keys.

RIPEMD-160

Every part of the hash function plays a vital role, from managing Bitcoin addresses to strengthening the proof of work process. RIPEMD-160, short for RACE Integrity Primitives Evaluation Message Digest, is used to help transform public keys into bitcoin addresses. There are five Ripe Message-Digest functions, but 160 are used in the Bitcoin network because they are highly secure and functional. RIPEMD-160 is used in the Bitcoin standard, which creates an alternative to long public addresses. This is a more robust version of the RIPEMD-128 algorithm, which produces 128-bit output. The process of building the hash function is difficult, especially since it must accept strings of arbitrary length as input.

How it all works under the hood is a 65-bit private key is formulated, which generates an uncompressed public key. This public key is basically your Bitcoin address, but it’s a long string of digits after it’s first created. The padding is implemented to reinforce and prevent length extension attacks. For ease of use, the key is shortened or compressed with RIPEMD-160 up to 20 bits. This is where a compressed function comes in. The protocol uses a checksum to check for errors through SHA-256, which hashes twice to validate that the address is secure and correct.

Using RIPEMD-160 when creating Bitcoin addresses reduces address space. This means that instead of having to enter very long addresses, they are reduced to a more manageable length. This process is a one-way function. Each public and private key is mathematically unique and cannot be duplicated, only shortened and compressed.

“SHA-256 will not be broken by Moore’s Law computer improvements in our lifetimes. If it should break, it will be by a revolutionary cracking method. -Satoshi Nakamoto

SHA-256

Bitcoin uses the SHA-256 hash function in its proof of work process. Proof of work is considered to be the original consensus mechanism of the cryptocurrency. Bitcoin is the original and best example of this mechanism. At one point, the difficulty adjustment was so small that mining could be performed on computers with low hashing power, such as a personal computer. Over time, as the demand for more Bitcoin mined increased, adjusting the difficulty to earn one increased.

The difficulty in acquiring Bitcoin has gone beyond what home computing power can accomplish. Mining computer hardware equipped with ASIC chips is the best choice for mining bitcoin. Currently there is a lot of hash rate competition which makes mining almost unprofitable unless you have a high end mining rig powered by cheap renewables. By comparison, if you are planning to get into bitcoin mining, remember that you will be competing against large, high-end mining companies like Final Hash, Marathon Digital, and Riot Blockchain, Inc.

The cool part of SHA-256 is the security and the ability to encrypt sensitive information on the blockchain that could otherwise be used to the detriment of the user. This security is immutable and runs on a consistent schedule. Secure hashing algorithms help compile and sort astronomical mathematical equations to earn bitcoin by mining computers. Human intervention in the process is unnecessary and would be downright impossible to achieve even with the best calculators one can buy. A private key is a 256-bit number. A “bit” has a value of 0 or 1 and is the smallest unit of measurement for computer data.

Digital signatures are secured with private keys, which means you can transact with Bitcoin monetarily under that key’s unique bit number. If you don’t have the right private key, you can’t spend bitcoin or access funds in the blockchain keys database. Therefore, these private keys must be properly generated and then stored in a safe and secure place. Remember the saying coined by Isaiah Jackson, “No keys, no cheese.”

The possibility of data being revealed from the hash value is so low that it is considered impossible. Combinations of numbers and data remove brute force attacks or network hijacking due to its complexity. In addition, it is also very unlikely that two data values ​​(called a collision) have the same hash. After reading this essay, learning about hash functions when in doubt about Bitcoin’s security and possible exposure to corrupted public or private keys should be a snap.

These feelings of doubt should be dispelled once you understand how well thought out and secure the encryption process is thanks to the genius of Satoshi. The Bitcoin network is designed to withdraw money from the hands of centralized control and in a decentralized world without authorization. The SHA-256 and RIPEMD-160 hash functions make this possible, in a secure, one-way function.

This is a guest article by Dawdu Amantanah. The opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.

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