What is Crypto Hashing and is Crypto Mining Environmentally Friendly?

Crypto Hashing

Hashing is the process of generating a value or a group of values from a text by using some mathematical function. It is one of the ways to make the network secure while you are transmitting a message to a specific recipient. Generally, a complex formula generates the hash function that protects transmission security against tempering. You may find learning this term a little difficult. But, no worries, in this guide, we will define the terms crypto hashing for a newbie and how it works for your better understanding. In the second portion, we will have some words on the environmental impact of crypto mining.

What is Crypto Hashing?

Converting the input string of any length to the output of a specific length, for ultimate security, in the context of cryptocurrencies is called crypto hashing.

How does Crypto Hash Function Works?

Simply stating, hashing takes an input value of a specific size and produces an output value of a defined size. While dealing with cryptocurrencies such as bitcoin, the instructions are taken as input and scanned through a Secure Hashing Algorithm (SHA-256). It produces an output of a defined size. (256 Alphanumeric Characters).

I love bitcoin5defb2ac8bab467a73a7afd26969312d5729e33742b2d5fc83ba10792aa5215f

No matter the length of your input, the function will convert it to 256 alphanumeric characters. This is important while dealing with the bulk of transactions. Despite memorizing the input, which may be lethargic, you can record the hash. Before proceeding, it is must to examine the aspects of hashing functions and how they are implemented on the blockchain.

Why is Hash used in Cryptography?

Cryptographic hash functions augment with security characteristics, making it more difficult to determine the text of a message or information about both parties. It is worth useful in cryptography.

Crypto hash functions have three properties making them strong to use:

They are hidden, making it impossible to guess the value input for a hash function from its output.

They are puzzle-friendly, which indicates that choosing an input that produces a predefined result is challenging. As a result, the input should be drawn from as broad a distribution as feasible.

They are collision-free, which implies that no two input hashed map the same output hash.

Properties of Crypto Hash Function?

Here are some important properties of a Crypto Hash Function you must need to be aware of:


This means that the result will always be the same, no matter how many times you parse a certain input using a hash function. This is essential since it will be difficult to keep track of the input if you get different hashes each time.

Quick to Respond

The hash function can swiftly return the hash of the input. If the procedure is not quick enough, the system will be inefficient.

Pre-Image Resistance

Pre-image resistance shows that it is difficult to distinguish between A and H(I). Here, “I” is the input hash, and “H(I)” is the output hash in the case of pre-image resistance. Notice the word “infeasible” rather than “impossible” in the sentence. We are aware that deducing the original input from its hash value is not difficult to do.

Is Crypto Mining Environment Friendly?

To make standing on this, one must know exactly how crypto mining works. Cryptocurrency mining needs machines equipped with specialized software to solve complex cryptographic mathematical problems. During the early stages of the technology, cryptocurrencies such as Bitcoin could be mined using a basic CPU chip on a home computer. However, due to most cryptocurrencies’ rising difficulty levels, CPU chips have proven unsuitable for mining.

The mining of cryptocurrencies nowadays requires either a GPU or an ASIC mining device. The mining rig’s GPUs or the ASIC must always be linked to a stable internet connection. Additionally, each crypto miner must be a member of an online crypto mining pool.

Since mining, any cryptocurrency needs an unbreakable connection to power, and it does have environmental concerns. But if done right, it might be possible to channel all that energy into something good for the planet.

Using Fossil Fuels and Natural Gas as Power for Crypto Mining

Since the rise of cryptocurrency, especially bitcoin, the world’s major economies have dived into mining those currencies for future prospects. That did not work in one way as the projects were carried out on a larger scale, the emissions got hype and adversely affected the climate.

Even bitcoin transactions use a significant amount of energy, with the typical transaction taking over 1,700 kWh of power, about double the amount consumed monthly by the average US home.

Some economies are also using natural gas as the source to generate electricity. If that goes on, they will short out of resources one day, and they have to use an alternative way of mining.

Is Renewable Energy the Best Way Out

In the long run, this could help cut down on the carbon emissions caused by mining itself by putting operations next to resources that don’t emit carbon, like nuclear, hydro, wind, and solar power. Also, co-location could generate more money because they could sell electricity to miners instead of the grid when prices are low. This type of hybrid power plant could even make projects that aren’t very profitable feasible.

What are the Most-Environment Friendly Cryptocurrencies?

While cryptocurrencies, in general, have a negative effect on the environment, certain varieties of digital currencies are recognized to have a lower energy consumption. 

A research was conducted by TRG Datacenters. Consumption was measured in KWH per transaction. Following are the results they came up with:

IOTA: 0.00011KWH

XRP: 0.0079 KWH

Dogecoin: 0.12KWH

Cardano: 0.5479KWH 

Litecoin: 18.522KWH 

Ethereum: 62.56KWH 

Bitcoin: 707KWH


Since the crypto economy has been taking charge steadily, it is impossible to shut the miners instantly due to environmental concerns. However, governments must take steps to transform the energy sources used in crypto mining. Prudent panning with technological advancement in renewable energy resources could address the issue.

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