Unlocking Blockchain: How SHA-256 Powers Cryptocurrency Security πŸ”

Discover the secrets behind blockchain technology! Learn how SHA-256 encrypts data, secures transactions, and keeps cryptocurrencies like Bitcoin safe and transparent.

Unlocking Blockchain: How SHA-256 Powers Cryptocurrency Security πŸ”
TheCODTech
34 views β€’ Aug 26, 2025
Unlocking Blockchain: How SHA-256 Powers Cryptocurrency Security πŸ”

About this video

1. SHA-256

Cryptographic hash function.
Converts any data into a fixed 256-bit output.
Used for block hashing & mining puzzles in Bitcoin.
Ensures data integrity & immutability.

2. ECDSA (Elliptic Curve Digital Signature Algorithm)

Provides digital signatures using public/private keys.
Private key β†’ signs transactions.
Public key β†’ verifies authenticity.
Ensures ownership & security of transactions.

3. Merkle Tree

Tree structure of transaction hashes.
Final hash = Merkle Root (stored in block header).
Makes transaction verification fast & efficient.

4. Proof of Work (PoW)

Miners solve cryptographic puzzles (via SHA-256).
First solver adds block + earns reward.
Pros: Very secure.
Cons: Slow & energy-hungry.

5. Proof of Stake (PoS)

Validators chosen based on their staked coins.
More eco-friendly & faster than PoW.
Pros: Energy efficient.
Cons: Can favor rich validators.


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Video Information

Views

34

Duration

0:21

Published

Aug 26, 2025

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