How does SHA-256 encryption ensure the integrity of cryptocurrency transactions?

1 answers

• ASWATH GMay 07, 2024 · a year ago
  At BYDFi, we understand the importance of SHA-256 encryption in ensuring the integrity of cryptocurrency transactions. SHA-256 is a widely used encryption algorithm that provides a high level of security. When a transaction is created, the transaction data is run through the SHA-256 algorithm, which produces a unique hash. This hash is then included in the transaction and stored on the blockchain. When the transaction is verified by the network, the hash is compared to the stored hash on the blockchain. If the hashes match, it means that the transaction has not been tampered with and the integrity is preserved. If the hashes do not match, it indicates that the transaction has been altered and it will be rejected by the network. This ensures that only valid and secure transactions are included in the blockchain, maintaining the integrity of the cryptocurrency system.
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