Editors Note: This article comes fromchain news, reproduced with permission.
Editors Note: This article comes from
chain news
, reproduced with permission.Original Author: Kiaresh Narimani Compiler: AjinaToday, most of the security of the blockchain community relies on the outdated hash algorithm standard (SHA-2),
hash function
This standard is not well suited to the needs of demanding financial markets
. Existing blockchains will eventually need to be upgraded to SHA-3, which our team has identified as the best cryptographic hash function, and new blockchains should deploy this algorithm standard now. It is early days for securities to be issued on the blockchain. As leaders in capital markets crypto-securities and blockchain technology, we must consider how we facilitate asset transfers; we must ensure that we operate in a way that lays the foundation for long-term security while also setting the standard for industry best practice. This is accomplished by implementing a state-of-the-art cryptographic hash function, the Secure Hash Algorithm 3 (SHA-3).
hash function
Hash Function Blockchain technology is disrupting the data management industry.
P2P networks facilitate the use of cryptography, creating a growing demand for data security and transparency solutions. A cryptographic hash function is a method of creating small digital fingerprints from any kind of data. This function scrambles the data and recreates a fingerprint called a hash value, which is usually a short string of random letters and numbers of a certain length.
This makes it very simple to compare the authenticity of the data with the original data: instead of having to read the two data in detail, we can simply compare the digital fingerprint generated by the hash function which is much smaller than the data file. In P2P networks, hash functions protect transaction data by generating a unique digital fingerprint for each transaction. Transaction hashes are organized into a Merkle tree (hash tree) to help verify the authenticity and interrelationship of each transaction stored on the blockchain.
The SHA-3 hash function is also used at the block level, which can generate proof-of-work challenges that target miners to find the next block on the blockchain. This proof-of-work challenge is an important part of how the network achieves its integrity and decentralized consensus.Those miners who successfully compute a SHA-3 hash that meets the SHA-3 specified in the proof-of-work challenge will be rewarded with a certain amount of cryptocurrency. While blockchain technology is a clear path forward for early adopters in the industry, there are still some concerns around enterprise and enterprise applications in traditional finance. How these needs are met to bring blockchain solutions into the mainstream will depend on how well the architecture of the blockchain protects client data from network interference or manipulation. As an important part of the architecture, a suitable hash function can determine the operability at the enterprise level.。
Securing Capital Markets with SHA-3
Use SHA-3 to ensure the security of the capital market SHA-3 as a hash standard, it provides certified security for the users private key and hardware-based high-speed encryption, soSHA-3 is the most suitable for future capital market needsReasonable properties of SHA-3 can instill confidence in rights and governance of P2P networks that do not rely on central intermediaries. Unlike Bitcoin, which is based on SHA 256, and hash functions for other blockchains, SHA-3 was developed by the community in collaboration with the National Institute of Standards and Technology (NIST), enabling different perspectives and problems to be addressed. This means that a hash function must be subject to public scrutiny and thorough testing before it can be considered a hash standard.
In 2015, NIST released SHA-3 as a standard for ensuring the integrity of electronic messages. A subset of Keccak, SHA-3 cryptography is built on a sponge, a special method of accepting data and then outputting it. Unlike other cryptographic hash functions, the sponge construction allows any amount of data to be input and output, which extends the output function and makes it more flexible in terms of usage. One obsolescence issue when weighing SHA-3 is that its hash speed is lower than the previous two generations. This doubt is no problem, but it is only limited to the software. exist
In terms of hardware, SHA-3 easily surpasses SHA-1 and SHA-2
, and more hashing in hardware components. As the third version in the series, SHA-3 is very different from its first and second iterations, sharing the same mathematical and cryptographic structure (MD5).Build a better blockchain
We have the opportunity today to take lessons from the most famous blockchains and create an iteration of the technology that will ultimately be used to meet our business needs in the capital markets.
BUIDL > HODL
BUIDL >Build a new, purpose-built, cryptographically secure blockchain that allows us to customize and have great transparency
, so as to better meet future needs. As Keccaks team points out, SHA-3 is the most suitable for industry use according to Federal Information Processing Standards (FIPS), and its hash rate is an order of magnitude higher than that of SHA-2.
After our recent survey of hash algorithm candidates, including Equihash, Cuckoo Cycle, and Ethash, we concluded that SHA-3 indeed best meets the needs of the capital markets. The survey looked at aspects such as method of operation, work independence, ASIC optimization or resistance, difficulty control, algorithms, security and speed. Of these candidates, SHA-3 proved to be the best, providing authenticated securities while also supporting the establishment of trust in the global network of issuance, trading, clearing and settlement of securities.HODL Although the expansion of the blockchain industry is still in its infancy, the industry as a whole is gradually showing signs of maturity.The constant volatility in the value of cryptocurrencies is too much for those looking for quick profits. But the price of the token won’t confuse those who “hodl” in hopes of building better tools and networks for a better future. While this volatility has gone some way to reducing some of the jitters surrounding the cryptocurrency industry, there is a growing desire for greater maturity from industry players.buidl is a direct nod to hodl, a movement focused on the development of cryptocurrencies
