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SHA-256
SHA-256 (Secure Hash Algorithm 256-bit) is a cryptographic hash function that generates a fixed-size 256-bit hash from any input. It is widely used in blockchain technology for data integrity, encryption, and securing transactions. Bitcoin uses SHA-256 in its Proof of Work (PoW) algorithm to secure the network and validate transactions. The algorithm takes an input, such as a block of transactions, and produces a unique hash. Even a small change in the input will produce a completely different hash, ensuring the immutability of data on the blockchain. Example: Miners in the Bitcoin network use SHA-256 to create new blocks by solving complex cryptographic puzzles.
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