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What Is Hashing? [Step-by-Step Guide-Under Hood Of Bitcoin mining sha 256 and get +16+16

So, what really is hashing?

TLDR:

Hashing is generating a value or values from a string of text using a mathematical function. Hashing is one way to enable security during the process of message transmission when the message is intended for a particular recipient only. A formula generates the hash, which helps to protect the security of the transmission against tampering.

It is important to know how blockchain Hashing works. In order to do that, however, we need to first understand one of the core bitcoib that go into blockchain creation. Blockchain technology is one of the most innovative and era-defining discoveries of the past century. Seeing the influence it has had over the last few years and the impact that it will have in the future, it surely isn’t an exaggeration to say that. In order to understand how various cryptocurrencies like Ethereum and Bitcoin function.

So what is hashing?

In simple terms, hashing means taking an input string of any length and giving out an output of Bitcoin mining sha 256 fixed length. In the bitoin of cryptocurrencies like Bitcoin, the transactions Bitcoin mining sha 256 taken as input and run through a hashing algorithm (Bitcoin uses SHA-256) which gives an output of a fixed length.

Let’s see how the hashing process works. We are going put in certain inputs. For this exercise, we are going to use the SHA-256 (Secure Hashing Algorithm 256).

As you can see, in the case of SHA-256, no matter how big or small your input is, the output will always have a fixed 256-bits length. This becomes critical when you are dealing with a huge amount of data and transactions. So basically, instead of remembering the sya data which could be huge, you can just remember the hash and keep track. Before we go any further we need to first see the various properties of hashing functions and how they get implemented in the blockchain.

Cryptographic hash functions

A cryptographic hash function is a special class of hash functions that has various properties making it Bitcoin mining sha 256 for cryptography. There are certain properties that a cryptographic hash function needs to have in order to be considered secure. Let’s run through them one by one.

Property 1: Deterministic

This means that no matter how many times you parse through Bitcoin mining sha 256 particular input through a hash function you will always get the same result. This is critical because if you get different hashes every single time it Bitcoin mining sha 256 be impossible to keep track of the input.

Property 2: Quick Computation

The hash function bifcoin be capable of returning the hash of input quickly. If the process isn’t fast enough then the system simply won’t be efficient.

Property 3: Pre-Image Resistance

What pre-image resistance states are that given H(A) it is infeasible to determine A, where A is the input and H(A) is the output hash. Bitcoin mining sha 256 the use of the word “infeasible” instead of “impossible”. We already know that it is not impossible to determine the original input from its hash value. Let’s take an example.

Suppose you are rolling a dice and the output is the hash of the number that comes up from the dice. How will you be able to determine what the original number was? It’s simple all that you have to do is to find out the hashes of all numbers from 1-6 botcoin compare. Since hash functions are deterministic, the hash of a particular input will always be the Bitcoin mining sha 256, so you can simply compare the hashes and find out the original input.

But this only works when the given amount of data is very less. What happens when you have a huge amount of data? Suppose you are dealing with a 128-bit hash. The only method that you have to find the original input is by using the “brute-force method”. The brute-force method basically means that you have to pick up a random miining, hash it and then compare the output with the target hash and repeat until wha find a match.

So, what will happen if you use this method?

Best case scenario: You get your answer on the first try itself. You will seriously have to be the luckiest person in the world for this to happen. The odds of this happening are astronomical.Worst case scenario: You get your answer after 2^128 – 1 times. Basically, it means that you will find your answer at the end of all the data.Average scenario: You will find it somewhere in the middle so basically after 2^128/2 = 2^127 times. To put that into perspective, 2^127 = 1.7 X 10^38. In other words, it is a huge number.

So, while it is possible to break pre-image resistance via the brute force method, it takes so long that it doesn’t matter.

Property 4: Small Changes In The Input Changes the Hash.

Even if you make a small change in your input, the changes that will be reflected Bitcoin mining sha 256 the hash will be huge. Let’s test it out using SHA-256:

Bitcoin mining sha 256 you see that? Even though you just changed the case of the first alphabet of the input, look at how much that has affected the output hash. This is a critical function because this property of hashing leads to one of the greatest qualities of the blockchain, Bitcoin mining sha 256 immutability (more on that later.)

Property 5: Collision Resistant

Given two different inputs A and Bitcoin mining sha 256 where H(A) and Bitcoin mining sha 256 mibing their respective hashes, it is infeasible for H(A) to be equal to H(B). What that means is that for the most part, each input will have its own unique hash. Why did we say “for the most part”? Let’s talk about minign interesting concept called “The Birthday Paradox”.

What is the Birthday Paradox?

If you meet any random stranger out on the streets the chances are very low for both of you to have the same birthday. In fact, assuming that all days of the year have the same likelihood of having a birthday, the chances of another person sharing your birthday is Bitcoin mining sha 256 which is 0.27%. In Bitcoin mining sha 256 words, it is really low.

However, having said that, if you gather up 20-30 people in one room, Bitcoin mining sha 256 odds of two people sharing the exact same birthday rises up astronomically. In fact, there is a 50-50 chance for 2 people sharing the same birthday in this scenario!

Image credit: (YouTube)

Why does that happen? It is because of a simple rule in probability which goes as follows. Suppose you have N different possibilities of an event happening, then you need square root of N random items for them to have a Bitcoin mining sha 256 chance of a collision.

So applying this bitcoij for birthdays, you have 365 different possibilities of birthdays, so you just need Sqrt(365), which is ~23~, randomly chosen people for 50% 526 of two people botcoin birthdays.

What is the application of bitxoin in hashing?

Suppose you have a 128-bit hash which has 2^128 different possibilities. By using the birthday paradox, you have a 50% chance to break the collision resistance at the sqrt(2^128) = 2^64th instance.

As you can see, Bitcoin mining sha 256 is much easier to break collision resistance than it is to break preimage resistance. No hash function is collision free, but it usually takes so long to find a collision. So, sa you are using a function like SHA-256, it is safe to assume that if H(A) = H(B) then A = B.

Property 6: Puzzle Friendly

Now, this is a fascinating property, and the application and impact that this one property has had on cryptocurrency are huge (more on that later when we cover mining and crypto puzzles). First let’s define the property, after that we will go over each term in detail.

For every output “Y”, if k is chosen from a bitcoinn with high min-entropy it is infeasible to find an mjning x such that H(k|x) = Biycoin probably went all over your head! But it’s ok, let’s now understand what that definition means.

What is the meaning of “high min-entropy”?

It means that the distribution from which the value is chosen is hugely distributed so much so that us choosing a random value has a negligible probability. Basically, if you were told to chose a number between 1 and 5, that’s a low min-entropy distribution. However, if you were to choose a number between 1 and a gazillion, that is a high min-entropy distribution.

What does “k|x” mean?

The “|” denotes concatenation. Concatenation means adding two strings together. Eg. If I were to concatenate “BLUE” and “SKY” together, then the result will be “BLUESKY”.

So now let’s revisit the definition.

Suppose you have an output value “Y”. If you choose a random value “k” from a wide distribution, it is infeasible to find a value X such that the hash Bitcoin mining sha 256 the concatenation of k and x will give the output Y.

Once again, notice the word “infeasible”, it is not impossible because people do this all the time. In fact, the whole process of mining works upon this (more on that later).

Examples of cryptographic hash functions

MD 5: It produces a 128-bit hash. Collision resistance was broken after ~2^21 hashes. SHA 1: Produces a 160-bit hash. Collision resistance broke after ~2^61 hashes. SHA 256: Produces a 256-bit hash. This is currently being used by Bitcoin. Keccak-256: Produces a 256-bit hash and is currently used by Ethereum.

Hashing and data structures

A data structure is a specialized way of storing data. There are bjtcoin data structure properties that are critical if you want to understand how a blockchain works. They are:

Pointers. Linked Lists.

Pointers

Pointers are variables in programming which stores the address of another variable. Usually normal variables in any programming language store data.

Eg. int a = 10, means that there is a variable “a” which stores integer values. Bitcoin mining sha 256 this case, it is storing an integer value which is 10. This is a normal variable.

Pointers, however, instead of storing values will store 265 of other variables. Which is why they are called pointers, because they are literally pointing towards the location of other variables.

Linked Lists

A linked list is one of the most important items in data structures. This is what a linked list looks like:

It is a sequence of blocks, each containing data that is linked to the next block via a pointer. The pointer variable, in this case, contains the address of the next node in it and hence the connection is made. The last node, as you can see, has a null pointer which means that it has no value.

One important thing to note here, the pointer inside each block contains the address of the next block. That is how the pointing is achieved. Bitcoin mining sha 256 you might be asking what does that means for the first block in the list? Where does the pointer of the first block stay?

The first block is called the “genesis block” and its pointer lies out in the system itself. It sort Bitcoin mining sha 256 looks like this:

Image courtesy: Coursera

If you are wondering what the “hash pointer” means, we will get there in a bit.

As you may have Bitcoin mining sha 256 by now, this is what the structure of the blockchain is based Bitcoin mining sha 256. A blockchain is basically a linked list. Let’s see what the blockchain structure Bitcoin mining sha 256 like:

The blockchain is a linked list that contains data and a hash pointer that points minihg its previous block, hence creating the chain. What is a hash pointer? A hash pointer is similar to a pointer, but instead of just containing the address of the previous block it also contains the hash of the data inside the previous block. This one small tweak is what makes blockchains so amazingly reliable and trailblazing.

Imagine this for a second, a hacker attacks block 3 and tries to change the data. Because of the properties of hash functions, a slight change in data will change the hash drastically. This means that any slight changes made in block 3, will change the hash which is stored in block Bitcoin mining sha 256, now that in turn will change the data and the hash of block 2 which will result in changes in block 1 and so on and so forth. This will completely change the chain, which is impossible. This is exactly how blockchains attain immutability.

So what does a block header look like?

A block header contains:

Version: The block version number. Time: the current timestamp. The current difficulty target. (More on this later).Hash of the previous block. Nonce (more on this later).Hash of the Merkle Root.

Right now, let’s focus on the Hash of the Merkle Root. But before that, we need to understand what a Merkle Tree is.

What is a Merkle Tree?

Image Courtesy: Wikipedia

The above diagram shows what a Merkle tree looks like. In a Merkle tree, each non-leaf node is the hash jining the values of their child nodes.

Leaf Node: The leaf nodes are the nodes in the lowest tier of the tree. So wrt the diagram above, the leaf nodes will be L1, L2, L3 and L4.

Child Nodes: For a node, the nodes below its tier which are feeding into it Bitcoin mining sha 256 its child nodes. Wrt the diagram, the nodes labeled “Hash 0-0” and “Hash miining are the child nodes of the node labeled “Hash 0”.

Root Node: The single node on the highest tier labeled “Top Hash” is the root node.

So what does a Merkle Tree have to do with blockchains?

Each block contains Bitcoin mining sha 256 and thousands of transactions. It will be very time inefficient to store all the data inside each block as Bitcoin mining sha 256 series. Doing so will make finding any particular transaction mlning cumbersome and time-consuming. If you use a Merkle tree, however, you will greatly cut down the time required to find out whether a particular transaction belongs in that block or not.

Let’s see this in an example. Consider the following Merkle tree:

Image courtesy: Coursera

Now suppose I want to find out whether this particular data belongs in the block or not:

Instead of going through the cumbersome process of looking at each individual hash and seeing whether it belongs to the data or not, I can simply track it down by following the trail of hashes leading up to the data:

Doing this significantly reduces the time taken.

Hashing in mining: The crypto puzzles.

When we say “mining”, it basically means searching for a new block to be added in the blockchain. Miners minning around the world are constantly working to make Bitcoin mining sha 256 that the chain keeps on growing. Earlier it used to be easy for people to mine using just their laptops, but over time, Bitcoin mining sha 256 started bitocin mining pools to pool in their computer powers and mine more efficiently.

This, however, could have been a problem. There is a cap for each cryptocurrency, Bitcoin mining sha 256. for bitcoin, it is just 21 million. There are only 21 million bitcoins out there. If the miners are allowed to carry on, at this rate, they will fish out all the bitcoins in existence. On top of that, there needs to be a specific time Bitcoin mining sha 256 in between the creation of each blocks. For bitcoin, the time limit in Bitcoin mining sha 256 block creation is 10 mins. If the blocks were allowed to be created faster, it would result in:

More collisions: More hash functions will be generated which will inevitably cause more collisions. More orphaned blocks: If a Bitcoin mining sha 256 of miners are over mining they will come up with new blocks simultaneously. This will result in or more blocks not getting to be part of the main chain and becoming orphan blocks.

So, in order to restrict block creation, a specific difficulty level is set. Mining is like a game, you solve the puzzle and you get rewards. Setting difficulty makes that puzzle much harder sh solve and hence more time-consuming. WRT bitcoins the difficulty target is a 64-character string (which is the same as a SHA-256 output) which begins with a bunch of zeroes. A number of zeroes increases as the difficulty level increases. The difficulty level changes after every 2016th block.

The mining process

Note: We will primarily be talking about Bitcoin mining here.

When the Bitcoin mining software wants to add a new block Bitcoin mining sha 256 the blockchain, this is the procedure it Bitcoin mining sha 256. Whenever a new block arrives, all the contents of the blocks are first hashed. If the hash sh lesser than the difficulty target, then it is added to the blockchain and everyone in the community acknowledges the new block.

However, it is not as simple as that. You will have to Bitcoin mining sha 256 extremely lucky to get a new block just like that. This is where the nonce comes in. The nonce is an arbitrary string that is concatenated with the hash of the block. After that this concatenated string is hashed again and compared to the difficulty level. If it botcoin not less than the difficulty level, then the nonce is changed and this keeps on repeating a million times until finally, the Bitcoin mining sha 256 are met. When that happens the block is added to the blockchain.

So to recap:

The hash of the contents of the new block is taken. A nonce (random string) is appended to the hash. The new string is hashed again. The final hash is then compared to the difficulty level and seen whether it’s actually less than that or not. If not, then the nonce is changed and the process repeats again. If yes, then the block is added to the chain and the public ledger is updated and alerted of the addition. The miners responsible for this are rewarded with bitcoins.

Remember property number 6 of hash functions? The puzzle Bitcoin mining sha 256 every output “Y”, if k is chosen Bitcoin mining sha 256 a distribution with high mjning it is infeasible to find an input x such that H(k|x) = Y.

So, when it comes to bitcoin mining:

K = Noncex= the hash of the blockY = the difficulty target

The entire process is completely random, there is no thought process behind the selection of the nonces. It is Bitcoin mining sha 256 pure brute-force where the software keeps on randomly generating strings till they reach their goal. The entire process follows the Proof Of Work protocol which basically means:

The puzzle-solving should be difficult. Checking the Bitcoin mining sha 256 should, however, be easy for everyone. This is done to make sure that no underhanded methods were used to solve the problem.

What is hash rate?

Hash rate basically means how fast these hashing operations are taking place while mining. A high hash rate means more people and software machines are taking part in the mining process and as a result, the system is running smoothly. If the hash rate is too fast the difficulty level is increased. If the hash minlng becomes too slow then the difficulty level is decreased.

Conclusion - What Is Hashing?

Hashing has truly been fundamental in the creation of blockchain technology. If one wants to understand what bitconi blockchain is all about, they should definitely understand what hashing means.

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Bitcoin Mining Hardware Comparison

Best SHA256 Cloud Mining Companies

What is SHA256 algorithm?

SHA stands for Secure Hash Algorithm and the 256 refers to the algorithm output length in bits. A Secure Hash Algorithm’s input data can be anything and provide a unique encrypted string. The most famous application is bitcoin, but there are a lot of other usages of the SHA-2 hash function in Bitcoin mining sha 256 applications and protocols, including SSL.

With the proof of work (POW), the majority of the network must confirm that the generated hash is a valid one. This is done through the mining activity.

The algorithm was first Bitcoin mining sha 256 in 2001 by the National Security Agency, which is a national intelligence agency of the United States. The SHA256 algorithm as part Bitcoin mining sha 256 the Secure Hash Algorithm family is widely documented and supported.

Which coins are using SHA256?

The first and most famous cryptocurrency with applying SHA256 algorithm is bitcoin. Bitcoin’s hard forks, like Bitcoin Cash is using the same algorithms as well. But there are other cryptocurrencies employing SHA256 algorithm.

The second cryptocurrency which started using SHA256 algorithm was Namecoin in 2012, which acts as an alternative decentralized DNS.

Peercoin has been introduced in 2012, which is the first cryptocurrency to use POW and POS functions. In PoS-based cryptocurrencies the creator of the next block is chosen via various combinations of Bitcoin mining sha 256 selection and wealth or age (i. e. the stake). In contrast, the algorithm of proof-of-work (PoW) based cryptocurrencies (such as bitcoin) rewards participants who solve complicated cryptographical puzzles in order to validate transactions and create new blocks.

NXT coin launched in 2014, specifically designed as a flexible platform to build applications and financial services around its protocol.

Which hardware can you use for mining with SHA256 algorithm?

You can build a cryptocurrency mining rig using SHA256 algorithm based on CPUs, GPUs, and ASIC miners.

Due to the nature of the algorithms, Application-Specific Integrated Circuit chips (ASICs), the mining hardware which is created solely to solve the hashing function of this specific algorithms is the most cost-efficient way to run your mining equipment. These dedicated mining hardware equipment is specially designed to make the cryptocurrency mining profitable with the most efficient energy usage and computational chips. Because of this, the price of the ASIC miners are relatively high due to both the research and development part and also because of the increasing demand for these hardware. Nevertheless, the shops selling ASIC miners ofter run out of stock even just based on pre-orders as most people try to get their hands on new equipment until the difficulty increases to that level that the profitability is impacted. ASIC miner is powerful hardware which consume a lot of electricity when running the Bitcoin mining sha 256 equipment.

You Bitcoin mining sha 256 run the SHA256 algorithm with mining rigs based on your Bitcoin mining sha 256 PC and laptop. However CPUs and GPUs, due to the high difficulty rate it would take ages until you would find the first block running these machines.

Pro

Widely documented and supportedit is possible to use CPU, GPU, and ASIC

Cons

It is only profitable to mine with ASICsless energy efficient compared to other algorithms

Optimizing SHA256 in Bitcoin Mining | SpringerLink

Scrypt ASIC vs. SHA-256: Explaining the Options for 2018

If you want to mine cryptocurrencies in 2018, then the chances are you Bitcoin mining sha 256 need to consider investing in some mining hardware. A Scrypt ASIC or a SHA-256 ASIC will provide a range of options for mining different coins. Here, we look at some of the options for hardware and coin mining using either SHA-256 or Scrypt ASICs in 2018.

Why Mine with ASICs?

In 2018, mining of many major cryptocurrencies is carried out predominantly using ASICs. This is true for Bitcoin, Litecoin, Bitcoin Cash, and now Ethereum too. Therefore, anyone mining these coins today using a GPU or CPU is trying to compete against colossal mining pools. These pools all use ASIC hardware that is specifically customized to solve the cryptographic puzzles generated by mining algorithms. So, going up against them using a GPU is like turning up at a gunfight at the Bitcoin mining sha 256. Corral armed with a Bitcoin mining sha 256 pistol.

It is true that there are some exceptions here. Monero is one example of a coin that switches its mining algorithm on a regular basis in an attempt to remain resistant Bitcoin mining sha 256 ASICs. But if you want to mine Bitcoin, Litecoin or many other altcoins in 2018, then you are dependent on hardware such as a SHA-256 or Scrypt ASIC to get the job done.

Mining ain’t what it used to be, back in the day. (Image source: Pixabay)

What Is the Difference Between Mining with a Scrypt ASIC vs. SHA-256?

Bitcoin uses the SHA-256 algorithm to create hashes that represent the data held in blocks on the blockchain. SHA-256 is complex to run, which means it is highly accurate and secure but also slow. This is the reason that it takes ten minutes to generate each block on the Bitcoin blockchain.

Mining using SHA-256 requires a very high hash rate, within the gigahashes per second (gH/s) range. Because of the high hash rate, miners quickly realized that dedicated hardware offered a better solution for mining Bitcoin than a GPU, as it can mine at a far higher hash rate. By 2011, miners had started to switch to customizable hardware, called Field Programmable Gate Arrays (FPGAs), as a way of channeling more computing power into mining.

Once the first ASIC made its debut in 2013, mining became an industrial effort, and by 2014, it was clear that ASIC Bitcoin mining sha 256 would dominate the future of Bitcoin mining.

Resistance Is Futile

The Litecoin team initially introduced the Bitcoin mining sha 256 algorithm when it launched in 2011. At that time, it was thought to be resistant Bitcoin mining sha 256 the newer mining hardware being deployed for Bitcoin mining. Scrypt is a less complex algorithm and does not require such a high hash rate as SHA-256. The block time for Litecoin is only two and a half minutes.

However, Scrypt is more memory intensive than SHA-256. The hardware available at the time of Litecoin’s inception couldn’t mine Scrypt. Even once ASICs made an appearance in 2013, they were customized for SHA-256. So for a short while, GPU mining of Litecoin reigned supreme.

It was only a matter of time though. In 2014, ZeusMiner launched its first Scrypt ASIC. These days, the markets for SHA256 and Scrypt ASIC hardware alike are dominated by mining monolith Bitmain.

Mining Hardware

The Bitmain Antminer hardware has quickly risen to become some of the best on the market today. While there are other options, Bitmain is currently dominating the market, and smaller ASIC manufacturers are struggling Bitcoin mining sha 256 compete.

A selection of the SHA-256 Antminer hardware from Bitmain

Bitmain manufactures both SHA-256 and Scrypt ASIC hardware. Which model you want will depend on a number of factors, including your budget for the initial hardware investment, desired hash rate, and power consumption. To get an idea of the profitability and trade-offs, use a calculator.

Mining Coins Using a SHA-256 ASIC

Some options for mining coins with a SHA-256 ASIC are:

BitcoinBitcoin CashPeercoinNamecoinLitecoin CashUnobtanium

Mining Coins Using a Scrypt ASIC

Some possibilities for mining coins with a Scrypt ASIC are:

At the time Bitcoin mining sha 256 writing, all of the above coins are currently still very much alive. There are other coins to mine using both SHA-256 and Scrypt ASIC, however, they are among the more obscure altcoins. While mining is always a potentially risky endeavor, mining unknown altcoins, which could disappear tomorrow, creates a far higher risk level.

When choosing which coins you want to mine, you’ll have to consider many variables. Profitability Bitcoin mining sha 256 one, which you can determine using a calculator. However, different coins will need different software to run on, some of which may be more complex to operate than others.

You’ll need to decide whether to join a mining pool or if you want to mine the coin solo (which may only be a viable option for the very minor altcoins). Finally, you’ll also need to ensure you have a wallet set up for any of the coins you want to Bitcoin mining sha 256 considering venturing into mining for the first time in 2018 should do serious research before investing in any hardware such as a SHA-256 or Scrypt ASIC. Especially with the current market values, the profitability of mining is down, and it could be a long time Bitcoin mining sha 256 you see any return on investment.

It is also worth mentioning that manufacturers like Bitmain are always going to release upgraded versions of ASIC Bitcoin mining sha 256. This means that mining will likely require continual investment to remain competitive. If you are thinking of going into mining, make sure you’ve done all your homework and have your eyes wide open to the risks.