Skip to content

GLOSSARY · BLOCKCHAIN & WEB3

Hash

A cryptographic function that transforms data of any size into a fixed string of characters, unique for each entry.

WHAT IS IT? · FOR DUMMIES

A Hash is like a digital fingerprint. Convert any type of information (a text, an image or a transaction) into a unique and fixed code. If you change even a comma in the content, the hash changes completely. It is used to ensure that nothing has been modified.

WHAT IS IT? · PRO

A Hash is the result of applying a cryptographic hash function, an algorithm that transforms an arbitrary data entry (of any size) into a fixed-length output (such as 256 bits in the case of SHA-256). This output acts as a unique identifier of the content, fulfilling three fundamental properties:

  1. Determinism: the same entry always generates the same hash.
  2. Uniqueness: it's practically impossible for two different entries to generate the same hash (collision).
  3. Irreversibility: You cannot infer the original entry from the hash.

In blockchain, hashes are used to:

  • Link blocks to each other, ensuring the integrity of the history (each block contains the hash of the previous block).
  • Verify the authenticity of transactions or smart contracts.
  • Digitally sign data, allowing us to validate that they have not been altered.
  • Building Merkle trees, which make it possible to verify large sets of data efficiently.
  • Generate unique identifiers for tokenized assets, NFTs, users or contracts.

Common hash functions include SHA-256 (Bitcoin), Keccak-256 (Ethereum), Blake 2, among others. A small change in the input generates a completely different hash, which guarantees immutability and resistance to manipulation.

In legal, cybersecurity and document verification applications, hashes allow prove the previous existence and the non-alteration of a content, making them especially useful for certifications, traceability and digital identity systems.

01 / Key points

  • Convert data into a unique, fixed-size identifier
  • Used to verify integrity, link blocks and digitally sign
  • It's irreversible: you can't recover the original content from the hash
  • Fundamental to the structure of blockchain and smart contracts
  • Minor differences in data generate completely different hashes

02 / Advantages

  • Guarantees data integrity and authenticity
  • Very computationally efficient, even for large volumes of information
  • Resistant to manipulation and attacks if used with good practices
  • Extensive support in cryptography, blockchain and cybersecurity
  • Base for structures such as Merkle trees, digital signatures and traceability

03 / Disadvantages

  • Possible theoretical collisions, although extremely unlikely with safe functions
  • It doesn't protect data on its own, only verifies its integrity
  • Can be vulnerable if obsolete or poorly implemented hash functions are used
  • It does not allow you to revert or recover the original content
  • Requires technical understanding to apply it correctly to critical projects