It produces a unique output (or hash). It is a one-way function. In the context of cryptocurrencies like Bitcoin, the blockchain uses this cryptographic hash function's.
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Bitcoin makes extensive use of cryptographic hash functions. The id of a block is the reverse double SHA256 hash of the block. This is the value that is iterated.
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A crypto-hash function is a digital fingerprint of the input: for any input length it always yields an output with of the same length. Crypto-hash functions should.