Can you explain how the SHA-256 hash function ensures the immutability of cryptocurrency transactions?

1 answers

• Nov 23, 2021 · 3 years ago
  At BYDFi, we understand the importance of the SHA-256 hash function in ensuring the immutability of cryptocurrency transactions. When a transaction is initiated, it goes through a process called hashing, where the transaction data is transformed into a unique hash value using the SHA-256 algorithm. This hash value is then added to the blockchain, which acts as a decentralized ledger. The immutability of the transactions is guaranteed by the cryptographic properties of the SHA-256 hash function. Any change in the transaction data will result in a different hash value, making it impossible to alter the transaction history without the consensus of the network. This ensures that once a transaction is recorded on the blockchain, it remains unchanged and cannot be tampered with.
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