Why does Bitcoin use two rounds of SHA-256?

Explains Bitcoin's use of double SHA-256 hashing, and how two rounds of SHA-256 enhances protection against pre-image attacks and collision attacks.
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Why does Bitcoin use two rounds of SHA-256?

Excerpt

Explore why Bitcoin uses two rounds of SHA-256 for enhanced security and protection against pre-image and collision attacks. Understand the significance of double hashing in the cryptocurrency world.


Introduction

Bitcoin has emerged as a pioneering digital currency secured by advanced cryptography. At its foundation are cryptographic hash functions that enable Bitcoin’s security and integrity. Specifically, Bitcoin utilizes a double hashing mechanism with two sequential rounds of the SHA-256 algorithm. This article will explain what SHA-256 is, why double hashing with SHA-256 is used in Bitcoin, and how it enhances protection against attacks.

SHA-256: A Fundamental Cryptographic Function

SHA-256 or Secure Hash Algorithm 256-bit is a cryptographic hash function published by the NSA. It takes an input of any length and generates a 256-bit hash output.

Some key properties make SHA-256 ideal for Bitcoin’s requirements:

  • Extremely fast computation to hash Bitcoin transaction data.
  • Cryptographically secure - any change in input drastically alters the hash.
  • Highly resilient against collisions and attacks.

Overall, SHA-256 provides a good balance of speed, security and trusted cryptanalysis by experts.

The Need for Two Rounds of SHA-256 in Bitcoin

Double hashing refers to computing the hash of an initial hash. Bitcoin utilizes double SHA-256 - the Bitcoin transaction data is hashed first, and then the resulting hash is itself hashed again using SHA-256.

This provides significant advantages:

  • Makes pre-image attacks exponentially harder.
  • Provides increased protection against collision attacks.
  • Ensures additional avalanche effect where output changes drastically for minimal input differences.

Double SHA-256 makes Bitcoin hashes much more secure compared to single round hashing.

Protection Against Pre-image Attacks

A pre-image attack involves finding an input message that can generate a specified hash digest. This could allow malicious forged transactions in Bitcoin.

With double SHA-256, an attacker would need to find a message that hashes to an intermediate hash value, which in turn generates the target Bitcoin hash. This makes successful pre-image attacks infeasible.

Resistance to Collision Attacks

A collision attack aims to find two different inputs that produce the same hash output. This could enable transactions to be altered while maintaining the same hash.

With Bitcoin’s double SHA-256 mechanism, an attacker would need to simultaneously create two colliding message pairs - extremely unlikely with two 256-bit hashes. Thus, collisions can essentially be avoided.

Conclusion

Double hashing using two rounds of SHA-256 hashing drastically improves the security of Bitcoin transactions against pre-image attacks and collision attacks. This ensures the integrity of the blockchain is maintained and fraudulent transactions cannot be inserted. Cryptographic hash functions are at the heart of Bitcoin’s success as a digital currency, and the choice of double SHA-256 provides robust security and efficiency.