What is a hash function in a Blockchain transaction?

Knowing about Blockchain technology is going to help you stand ahead of the competition. The growing demand for Blockchain professionals indicates that there is going to be growing use cases of Blockchain; the use of Blockchain spreads to different areas like food, real estate, marketing, advertising, finance and more. It is going to grow in the times to come. And so is the demand for Blockchain experts. As a blockchain professional, you should know the several functions of this system, and in this blog, we will highlight the hash function.

Hash function

It is a function that converts the input data into an encrypted output of a fixed length. Hash is created using an algorithm and is important for Blockchain management. The hash function comes from the French word “hacker”, which means cutting into smaller pieces showing how the hash function of Blockchain chops the data into smaller pieces.

As we have mentioned, Blockchain hash chops the data to a fixed length. This fixed length can vary from 32-bit or 64-bit, or 128-bit to 256-bit. This length is decided based on the function. This fixed-length output is called a hash. It is also a cryptographic by-product of the hash algorithm.

What are the key features of the hash function?

When we talk about cryptographic function, then it should perform the computational function efficiently. In simple words, it should be quick to create the hash value.

The next important feature of a hash is that it should be deterministic. In simple words, every time an input is added, it has to produce the same output every time, and at the same time, the output should not reveal any information about the input.

A hash function has to be collision-resistant. It ensures that the two different inputs should not be able to produce the same output.

These are the three most important features of the hash function in Bitcoin mining. Let’s focus on the node from where hashing begins and must have a certain number of zeros. It is the function of the node to check if it meets the parameter of complexity. If the node is able to meet, then it gets floated to the entire network. The first miner who validates the hash gets the reward.

In case the hash doesn’t meet the criteria of complexity, then another nonce is selected and added. Miners have to generate many nonces till the time one nonce matches the complexity. This is an energy-consuming process that is actually used in the Bitcoin mining process. Hash function forms the core of Proof of Work.


Blockchain forms the core of many business operations. It makes sure that the entire business process is free from any data breach attempts. If you are looking forward to learning more about Blockchain technology, then it is the right time to enrol for the Blockchain certification program. The Blockchain Council offers the best Blockchain training course and certification program. To enrol for this certification program, connect with the Blockchain Council today.



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Sophia Casey

Sophia Casey

I’m a Blockchain Expert | I’ll help you to make a good understanding of Advance Technology —Blockchain.