There’s been a lot of buzz about Blockchains lately. With cryptocurrencies like Bitcoin and Ethereum rising in value, and the promise of new blockchain-based technologies like Ethereum’s decentralized network and decentralized apps (dApps) built upon it, many are wondering what the fundamental building blocks of this emerging technology are.

So what exactly keeps the blockchain secure and safe from cybercriminals? Well? One of the most important parts of any blockchain’s integrity is something called one-way hashing. But how does it work, and more importantly, how does it keep you safe?

One-way hashing is a cryptographic technique used to protect data from theft and manipulation. In the context of blockchain technology, hashing is what preserves the integrity and immutability of each block in the chain. One-way hashing involves a three-step process: input (e.g. a password), a hash function (the algorithm used to hash the input), and then the result of the hashing, known as the hash value.

The hash function, simply put, scrambles the input to create a set of outputs. The same input will always create the same output, so someone can verify the validity of something like a password without ever knowing the actual password. In this way, a hash value can be stored on a server and used to verify login credentials and other credentials without storing the actual, real data, eliminating the risk of exposure to cybercriminals — even in the event of a data breach!