SHA-256
A standardised cryptographic hash function that calculates a 256-bit fingerprint from any data. Bitcoin uses it for mining and identifiers – and even hashes the block header twice in a row.
AlsoSHA256Secure Hash Algorithm 256SHA-256ddouble SHA-256
On the learning path: Stage 1 · Step 3 – How does Bitcoin work?
SHA-256 (‘Secure Hash Algorithm’, 256 bits) is specified by the US standards body NIST in FIPS 180-4. According to the standard, it should be computationally infeasible to find data that matches a given hashGlossaryHash (hash value)A fixed-length digital fingerprint that a hash function calculates from any data. Even the tiniest change produces a completely different value, and the original data can’t be worked out from the hash.On the learning path: Stage 1 · Step 3 – How does Bitcoin work? →In the glossary →, or two inputs with the same hash.[1] The result is usually written as 64 characters from 0–9 and a–f. There are 2²⁵⁶ possible values, a number with 78 digits.
Where Bitcoin uses SHA-256
- Mining: The 80-byte block header is hashed twice – SHA-256 applied to the result of SHA-256, or SHA-256d for short. The hash must be less than or equal to the target.[2]
- Linking: Every block header contains this double hash of the previous block header. Anyone who changes an old block therefore has to change all the block headers that follow as well.[2]
- Identifiers and addresses: Transaction IDs are double SHA-256 hashes too. Many address formats are derived from the public key using SHA-256 and RIPEMD-160.[3]
What this means for you
You never apply SHA-256 yourself; your wallet and the nodesGlossaryNodeA computer that runs Bitcoin software and exchanges transactions and blocks with other nodes. Together, the nodes form the Bitcoin network; full nodes check every rule themselves.On the learning path: Stage 1 · Step 3 – How does Bitcoin work? →In the glossary → do that. What matters is the asymmetry: all miners together find a matching block header only about once every ten minutes on average – at a current rate of around 969 EH/s (EH/s: quintillions of hashes per second). Any node can check that it matches with a single double hash in a fraction of a second. That’s why falsifying the blockchain after the fact is so expensive.
Related terms
These terms are closely connected.
- This termSHA-256
- Hash (hash value)A fixed-length digital fingerprint that a hash function calculates from any data. Even the tiniest change produces a completely different value, and the original data can’t be worked out from the hash.
- Proof of workThe method by which miners prove that they have done real computing work for a new block. It lets the network agree on the valid chain without a central authority, and makes rewriting old blocks extremely expensive.
- MiningThe process in which specialised computers create new blocks using proof of work. In doing so, miners confirm transactions and are rewarded with newly created bitcoin plus the fees of the transactions in the block.
- NonceA 4-byte number in the block header that miners change over and over during proof of work until the hash of the block header is less than or equal to the target. Each new value is a new attempt.
Explained in depth
These articles go into more detail:
- Deep dive · Stage 1Mining & proof of workHow Bitcoin mining works: the hash puzzle, difficulty adjustment, rewards, pools and energy – and why mining at home doesn’t pay in Germany.
- Stage 1 · Step 3How does Bitcoin work?Blockchain, transactions, nodes, miners and consensus: how Bitcoin’s building blocks fit together – with a payment’s journey, step by step.
- Deep dive · Stage 1Whitepaper explainedSatoshi Nakamoto’s nine pages from 2008 in plain words: all twelve sections explained clearly, with links to the original and to translations.
More from „Technology“
Sources3 sources · 2 publishers
The superscript numbers in the text refer to these sources.
- FIPS 180-4: Secure Hash Standard (SHS) – National Institute of Standards and Technology (NIST), August 2015 (accessed 28/09/2026)
- Developer Reference: Block Chain (Block Headers) – bitcoin.org Developer Documentation (accessed 28/09/2026)
- Developer Reference: Transactions (TXID, address conversion) – bitcoin.org Developer Documentation (accessed 28/09/2026)
This entry is for education only and is not investment, tax or legal advice.