$BTC WHAT YOU NEED TO KNOW ABOUT THE ALGORITHMS USED IN BITCOIN.

The main algorithm in Bitcoin is SHA-256, which is used for the hash function and the mining process, and ECDSA for digital signatures. SHA-256 is a cryptographic algorithm that generates a unique fixed-length hash for any input data, ensuring the integrity of the blockchain. ECDSA, or Elliptic Curve Digital Signature Algorithm, is used to verify ownership of bitcoins through digital signatures that accompany transactions.

SHA-256:

Hash Function:

SHA-256 is a one-way hashing algorithm, meaning it is easy to compute the hash of data but impossible to obtain the original data from its hash.

Mining:

Miners use SHA-256 to find a valid hash for a new block, a process that requires significant computational power.

Security:

The fixed length of the hash (256 bits) and the difficulty of generating hashes with certain characteristics (for example, with a specific number of leading zeros) are fundamental to the security of the Bitcoin network.

Proof of Work:

SHA-256 is the basis of the "Proof of Work" (PoW) consensus algorithm in Bitcoin.

ECDSA:

Digital Signatures:

ECDSA is used to create digital signatures that verify ownership of coins and authorize transactions.

Private and Public Keys:

Each user has a private key (secret) and a public key (which can be shared). The public key is derived from the private key using ECDSA.

Verification:

The digital signature, created using the sender's private key, can be verified by any node in the network using the sender's public key, ensuring that the transaction is valid and has not been altered.

In summary, SHA-256 and ECDSA are two essential cryptographic algorithms for the secure and decentralized functioning of Bitcoin.