Why Hashing Matters? Understand the Concept and Its Benefits
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The Importance of Hashing in Modern Information Security

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The Importance of Hashing in Modern Information Security


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Data is very important in the digital world, so security also needs to get more attention.

If it is not properly secured, the data will be vulnerable to illegal access to crimes such as hacking and others.

Many terms are important for investors to understand regarding the digital world and crypto assets.

One of the important terms you need to know is hashing. Hashing is a type `of cryptography that needs to be understood.

In the cryptography world, hashing has a very important role because it is an integral part of many cryptographic protocols and algorithms used in computer and network security.

So, to better understand what hashing is and the importance of this process in protecting the integrity, authenticity, and confidentiality of data, see the following review.

What Is Hashing?

apa itu hashing

Before getting into the definition of hashing, you should understand hash. Hash is a code used to create messages, words, or data.

Meanwhile, hashing is a process that aims to change large data (Big Data) into smaller and unique values.

This is often called a “hash value” or “digest.” In addition, hashing can also be interpreted as producing an output of the same size via input of variable size.

The basic concept of hashing is taking any input data, both in large numbers and in smaller sizes, then calculating the hash value as a fixed numeric representation of that data.

The hash value is generated by applying a certain hash function designed to produce a unique value that is unlikely to be predicted in reverse.

Furthermore, the hash function is an algorithm used to convert input data into a hash value.

This function will take input data and produce a consistent and unique output representing that data.

In this case, the hash function must produce the same result for the same input data and produce different values for different input data.

On the other hand, the hash value is the output of the hash function, which is a fixed numeric representation of the input data.

It should also be understood that the hash value must have a fixed size regardless of the input data size.

How Hashing Works and Its Functions

Now that you know what hashing is, it’s time to understand how hashing works and what it does.

This understanding is important because it will directly impact the use and application of cryptography, data security, and information management in general.

With this understanding, more in-depth information will be obtained regarding security mechanisms and data management in the context of cryptography and information security.

The way hashing works on the blockchain is by taking the number of bits with no limit (limit).

Then, the next process, after taking the number of bits, is to calculate and produce a fixed number of bits.

Then, the process will produce output. The resulting output will always be corrected so that the last data that has been transformed will be referred to as a hash.

Usually, the hashing algorithms are very different at this time because there are also differences in how the information is processed.

Furthermore, it is also important to note that a cryptographic hash function is specifically designed for use in security and cryptographic contexts.

This function has special characteristics make it much more secure and reliable for producing unique and unpredictable hash values.

For information, this cryptographic hash function is used in several security protocols, including authentication, data integrity verification, password management, and digital signatures.

The Importance of Hashing Process in Cryptography

After understanding what hashing is and how it works, it is time to know how important it is in cryptography.

The hashing process in crypto is indeed important. Following are some of the reasons behind the importance of the hashing process in cryptography, including:

  • Hashing provides a more secure and customizable data retrieval method than other data structures.
  • Hashing can prevent transaction fraud.
  • Hashing is capable of storing passwords. In this case, the hashed password cannot be modified or stolen because it cannot be applied elsewhere.
  • Hashing can prevent double spending on the blockchain network.
  • Hashing is used to verify the originality of documents, so there is no need to Open both documents one by one. In this case, hashing will perform word-by-word comparisons, and the calculated hash value will immediately provide information regarding whether there are differences between the two documents.

Types of Hash Functions

jenis hashing

After understanding how important hashes are in cryptography, now is the time to discuss the types of hash functions.

This understanding is basically important because each type has different characteristics and functions in various contexts.

By understanding the types of hash functions, it is hoped that in the future, you will be able to make better decisions regarding the selection of functions that suit your needs in the use of hash functions in the applications and systems used.

The following are the types of hash functions that you need to know, including:

1. SHA-1

Designed back in 1995, SHA-1 was originally used to fix the flaws of SHA-0.

However, ten years later, a method was found to uncover collisions in the SHA-1 algorithm, so its long-term feasibility began to be doubted.

Even so, SHA-1 plays an important role in maintaining security if a user accesses a website using a password.

Later, the function of this algorithm is to align the password with other passwords that have been entered, and if it matches, the user will get access to enter.

2. SHA-2 and SHA-3

The SHA-2 and SHA-3 are the next type of SHA as a hash function that is much stronger, although it still follows the design of SHA-1.

Launched in 2001, SHA-2 consists of 6 hash functions with various digest sizes, including SHA-224, SHA-256, SHA-384, SHA-512, SHA-512/224, and SHA-512/ 256.

SHA-256 is the most popular hash function among other cryptographic hash functions. The reason is this function is widely used in blockchain technology.

In 2001, the hashing algorithm was developed by the National Security Agency (NSA). Then, in 2012, the Keccak algorithm became the new SHA-3 standard.

3. Ripemd – 160

RIPEMD-160 stands for Race Integrity Primitive Evaluation Message Digest-160. This algorithm is the most common and is developed from MD4. The following hash function can generate a 160-bit message digest.

As a result, this algorithm, with a high level of security, can make Bitcoin addresses accumulated according to the public key.

In addition, it can also minimize pending data which is the reason behind transaction delays.

Hashing vs. Encryption Difference

Please note that understanding the difference between hashing and encryption is important.

The reason is both have different goals and functions in information security. Understanding the differences will help select and implement the right one according to the desired security goals.

With this understanding, users can use hashing and encryption appropriately in various security contexts and maintain confidentiality, integrity, and data authentication.

These two processes, both hashing, and encryption, are useful and necessary to maintain data confidentiality.

However, even though the two have similarities, basically hashing and encryption also have differences.

In this case, hashing will be enabled to validate data integrity by detecting all modifications and changes in the hash output. Therefore, hashing itself is a one-way function.

Meanwhile, encryption (encryption) will provide a password to the data to maintain data security and confidentiality and is a two-way function, namely encryption and description.

Challenges and Security in Hashing

After knowing the difference between hashing and encryption, now is the time to understand the challenges and security of hashing.

Understanding the challenges and security in hashing is very important because hashing is a cryptographic component needed in many security applications.

Therefore, understanding this will help users implement proper and effective use of hash functions in various security applications and protect sensitive data.

The following are some of the challenges and security in hashing that you need to know, including:

1. Possible hash collisions and avoidance attempts

It should be noted that the possibility of a hash collision occurs when two different input data produce the same hash value.

Although, in theory, it is said that a good hash function should have a very low probability of collision, in practice, it is impossible to avoid hash collisions due to the unlimited scatter space. However, avoiding hash collisions is very important in the context of cryptographic hash functions.

However, while it is important to avoid hash collisions, in essence, no hash function is completely collision-free.

2. Selection of safe and reliable hashing algorithms

Another challenge and security in hashing that needs to be known is the selection of a safe and reliable hashing algorithm.

This is very important to maintain the security of user data. Therefore, several considerations are needed in choosing a safe and reliable hashing algorithm, including security and reliability.

In addition, it is also necessary to look at the speed and efficiency factors of the hashing algorithm and its compatibility with the systems and applications that will use it.


In conclusion, hashing is a process that aims to transform large data into smaller and unique values.

This is often called a “hash value” or “digest”. In addition, hashing can also be interpreted as producing an output of the same size via variable-size input.

Hashing has an important role in cryptography, namely as a tool used to secure data and verify the integrity of information.

Apart from that, hashing also plays an important role in cryptography because of its function, which protects against threats that may be present in the crypto world.

Start Investing in Crypto Now on INDODAX

So, now you understand what hashing is and the importance of this process in protecting the integrity, authenticity, and confidentiality of user data in the digital world.

You need to know that user data is very secure in the digital world of crypto assets, so investing in crypto assets can be one of the best financial investment instruments.

For information, you can also invest in crypto assets on INDODAX. Previously, you could also download the best crypto trading application on this one before starting to invest.

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