SHA-256
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What Is the SHA-256 Algorithm?
SHA-256 (Secure Hash Algorithm 256-bit) is one of the most widely used cryptographic hash functions in the world of blockchain and cryptocurrency. It generates a fixed 256-bit output from any input, ensuring data integrity, security, and immutability.
As a core member of the SHA-2 family, developed by the U.S. National Security Agency (NSA), SHA-256 plays a vital role in securing blockchain networks and is the backbone of Bitcoin mining.
How SHA-256 Powers Blockchain Mining?
In proof-of-work systems, miners use ASIC (Application-Specific Integrated Circuit) hardware to solve complex mathematical problems. These computations involve finding a hash value that meets a network-defined difficulty target. When successful, miners:
โ Validate transactions
โ Secure the blockchain
โ Add new blocks to the chain
โ Receive cryptocurrency rewards
This process makes SHA-256 not just a hashing algorithm but a fundamental pillar of trustless, decentralized networks.
Cryptocurrencies That Use SHA-256
๐ Bitcoin (BTC)
The original and most valuable cryptocurrency, Bitcoin relies exclusively on SHA-256 to maintain its security, decentralization, and consensus.
๐ก Bitcoin Cash (BCH) & Bitcoin SV (BSV)
Both forks of Bitcoin, these coins also utilize SHA-256, offering similar mining ecosystems and compatibility with existing ASIC miners.
๐ข Peercoin (PPC) & Terra (LUNA – legacy chain)
These lesser-known cryptocurrencies also implement SHA-256 for mining, benefiting from its proven security features.
