Definition:
Secure Hash Algorithm 256, also known as SHA-256, is a one-way function designed to secure digital information. The function uses a complex mathematical process that converts text of any length into 256 bit (64-character long) string of letters and numbers. SHA-256 is called a one-way function since it is not possible (or very difficult) to determine the original input based on the output.
Explanation:
SHA-256 was originally designed by the United States National Security Agency (NSA). However, it is used in several security applications, including securing and verifying Bitcoin transactions. As mentioned before, the cryptographic function converts digital input into a specific sequence of letters and numbers. The output hash ensures that the original transaction data is secure and confidential.
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