What are the algorithms commonly used in digital currency development? Like SHA256.

Blockchain Enthusiast (qq:53016353)
The first time you see the word digital currency used in a Bitcoin wallet, it is easy to interpret it as a hardware (Hardware) wallet, which is actually the abbreviated digital currency wallets of a layered deterministic (hierarchical deterministic) wallet.


The word "layered certainty" at first glance looks very "tall", all kinds of documents also describe it "foggy", in fact the principle itself is very simple, two words can say clearly:


First, a random number is used to generate the primary (root) private key, which is no different from any Bitcoin wallet generating any private key;


Then, a deterministic, irreversible algorithm is used to generate any number of sub-private keys based on the primary private key;


See, No. It's simple.


So why use "deterministic, irreversible" algorithms. Because "OK" guarantees that all child private keys can be generated from a primary private key, "irreversible" is to ensure that the primary private key cannot be pushed back through the child private key.


For example, SHA256 can be seen as a "deterministic, irreversible" algorithm, and we can easily design a digital currency model using SHA256: SHA256 (seed + N)


In this model, seed is the primary private key, n= (...) The calculated results correspond to the first (...) The child private key.


This is actually the type 1 deterministic wallet (Type1 digital currency wallets), of course, we can also be based on more "deterministic, irreversible" algorithms to design other digital currency models, such as BIP32, such as the Class 2 deterministic wallet (Type2 digital currency wallets). The algorithm can be complex, but the principle is the same, very simple, and, as long as the SHA256 is safe, the digital currency model is safe.


The digital currency model has a very "good" feature in mathematics: You can generate any number of sub-public keys with just the primary public key. That is, without private key intervention (the primary and child private keys), you can generate new (public key) addresses based on the primary public key, which can actually be controlled by the master private key.


This feature makes the digital currency model more and more used in corporate and personal Bitcoin wallet solutions over the past year, but the advantages are often accompanied by costs, and in some cases, even "deadly".