Overview of the SHA-256 encryption algorithm

History of the creation of the algorithm SHA-256

What is SHA-256 for?

SHA-256 - Reduction from Secure Hashing Algorithm. Is a popular cryptographic hash algorithm developed by NSA, the US National Security Agency. The task of SHA-256 is to make certain values with a fixed length from a random data set, which will serve as an identifier for this data.

The obtained value is compared with the duplicates of the original data, which can not be extracted. The main scope of the algorithm is the use in various applications or services related to the protection of information, where the function is widely used. It is also used as a technology for mining crypto currency.

This algorithm belongs to the group of encryption algorithms SHA-2 which in turn are developed on the basis of the SHA-1 algorithm, first created in 1995 for civilian use. SHA-2 itself was developed by the US National Security Agency in the spring of 2002. Within three years the NSA issued a patent for the use of SHA technology in civilian projects.

In 2012 the National Institute of Standards and Technologies created an updated version of the algorithm: SHA-3. Over time the new algorithm will displace both the current basic SHA-2 algorithm and the already outdated but still used SHA-1.

The hash sum is not a technology of data encryption in the classical sense, this is due to the inability to decrypt the data in the opposite direction. This is one-way encryption for any amount of data. All SHA algorithms are based on the Merkla-Damgard method: the data is divided into uniform groups, each of which passes through a one-way compression function. As a result, the data length is reduced.

This method has two significant advantages:

Fast encryption speed and almost impossible decryption without keys
Minimum risk of collisions (identical images).

Where else is the SHA-256 algorithm used

Every day every user of the Internet, knowing or not, uses SHA-256: the SSL security certificate, which is protected by each website, includes the SHA-256 algorithm. This is necessary to establish and authenticate a secure connection to the site.

Pros of SHA-256

SHA-256 is the most common cryptocurrency mining algorithm among all the others. It has established itself as being resistant to hacking (with rare exceptions) and an effective algorithm for mining tasks and for other purposes.

Cons of SHA-256

The main drawback of SHA-256 is its control from the miners: the owners of the largest computing powers receive the most part of the crypto currency, that excludes decentralization as one of the basic principles of almost all cryptocurrencies.

Use in cryptocurrencies

Mining on SHA-256

Mining on SHA-256, like any other algorithm, is the process of solving any complex cryptographic problem that the mining program generates based on data from previous blocks.

Using the function SHA-256, you can mining in three ways:

CPU (central processing unit)
GPU (graphics processing unit)
ASIC (dedicated processor or integrated circuit).

In the mining the hashsum is used as an identifier for the existing blocks and creating new ones based on the previous ones. The process of mining is displayed in the interface in the form of "accepted f33ae3bc9...". Where f33ae3bc9... is a hashsum, a piece of data intended for decryption. The main block consists of a huge number of similar hashsums.

I.e. mining with the SHA-256 algorithm is a non-stop selection of the correct value of the hashsum and a search of numbers to create a new block. Than more your computing power, the more chances to get the right block: the speed of enumeration of different hashsums depends on the capacities of your computing source.

In view of the fact that Bitcoin is built on the SHA-256 algorithm, for competitive mining extremely competitive computing capacity is required. This is due to the fact that for the mining of bitcoin, the production of ASICs - an application specific integrated circuit, i.e. an integrated circuit for a special purpose has long been established. ASICs allow you to mining the bitcoins and other crypto currency on the SHA-256 algorithm much faster, more efficiently and cheaper.

What kind of the crypto-currencies using the SHA-256 algorithm?

SHA-256 is a classic algorithm for cryptocurrency: Bitcoin, a main cryptocurrency, built on SHA-256. Accordingly in the forks of bitcoin this algorithm also used: in Bitcoin Cash, Gold, Diamond and others.

In addition to these cryptocurrencies, SHA-256 is also used in:

Steemit
DigiByte
PeerCoin
NameCoin
TeckCoin
Ocoin
Zetacoin
EmerCoin and some others.

Also, the SHA-256 algorithm is used as a subroutine in the Litecoin cryptocurrency, and the main algorithm for mining there is Scrypt.

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