Hashing Algorithm

A network’s algorithm defines how the hash of a block must be calculated. In practice, it establishes the mathematical rules that miners must follow during the mining process.

Each algorithm has different characteristics and may favor specific types of hardware, such as ASICs, GPUs, or CPUs.

For example, Bitcoin uses the SHA-256 algorithm. This algorithm produces a 256-bit hash, represented as a string of 64 hexadecimal characters (numbers from 0 to 9 and letters from a to f).

Even a minimal change in the input data generates a completely different hash, making the system secure and resistant to modifications.