Why use hashing instead of encryption?

Unlike encryption, hashing is a one-way process, meaning that it cannot be reversed to retrieve the original data. This characteristic makes hashing an effective tool for verifying the integrity of information, as any change to the original data will result in a different hash value.

On the other hand, encryption works in two directions, allowing for both the encoding and decoding of data. This process involves transforming the original data into a format that is unreadable to unauthorized parties, while maintaining the ability to decrypt it back to its original form.

Encryption is commonly used to secure sensitive information from the reach of third parties, ensuring that only authorized individuals can access and understand the data. It is a crucial component of data protection, particularly in the digital age where information is transmitted and stored electronically.

Hashing and encryption are two distinct processes used in data security, each serving a unique purpose. Hashing involves the permanent conversion of data into a fixed-length string, known as a message digest, which serves as a unique fingerprint for the original data.

BTCC, a leading cryptocurrency exchange, offers a range of services that leverage both hashing and encryption technologies. Among its offerings are spot trading, which allows users to buy and sell cryptocurrencies at current market prices, and futures trading, which enables investors to speculate on the future price movements of digital assets.