What is Hash?

A hash results from an encrypted chain of letters + numbers. It is a mathematical code that can translate some input into a sophisticated output. The hash is always "one-way-around", which means that it is almost not reversible. Hash is an important part of the blockchain and cryptocurrency because it manages the security feature of the blockchain.

Image source: https://networkencyclopedia.com/hashing-algorithm/

Why is Hash Important?

Hash is playing multiple roles in cryptocurrency. Each block on the blockchain contains the hash of the previous block, ensuring no damage occurs when the new block is added. Also, the creation of a new block requires a solution for the hash. Solving hash requires a lot of work, and in cryptocurrency, users doing these works are called "miners". As a reward for the fastest user to solve the hash, it will be rewarded with several cryptocurrencies.

Therefore, it is obvious to see that hash gives the blockchain and the entire decentralized system a security feature for asset saving. Hash makes it almost impossible for people to steal or hack assets under blockchain technology. To learn more about the possibility of malicious transactions (i.e., stealing or hacking assets) on the blockchain, read the article: 51% Attack.