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What is Keccak256? Exploring the Cryptographic Hash Function and Its Use in Cryptocurrencies

Keccak256 is a versatile cryptographic hash function that has gained prominence due to its use in various cryptocurrencies, most notably Ethereum.


Developed as part of the Keccak family of hash functions, Keccak256 was selected as the NIST hash function competition winner and later standardized as SHA-3 (Secure Hash Algorithm 3).

A Brief History of Keccak256

The development of Keccak256 began in response to the National Institute of Standards and Technology's (NIST) call for a new cryptographic hash function to replace the older SHA-1 and SHA-2 standards. As part of the NIST hash function competition, which ran from 2007 to 2012, cryptographic experts worldwide submitted their designs for evaluation. Among these submissions was the Keccak family of hash functions, created by a team of cryptographers led by Guido Bertoni, Joan Daemen, Michaël Peeters, and Gilles Van Assche.

Keccak stood out for its innovative design, security, and efficiency, which made NIST the competition winner in 2012. Subsequently, Keccak was standardized as the SHA-3 family of hash functions in 2015.

Understanding Cryptographic Hash Functions

Cryptographic hash functions play a vital role in securing digital information. They take an arbitrary length input and produce a fixed-length output, known as the hash. Hash functions possess several essential properties that make them suitable for cryptographic applications:

  • Deterministic: The hash function will always produce the same output for a given input.
  • Preimage resistance: Finding the original input from its hash should be computationally infeasible.
  • Collision resistance: Finding two distinct inputs that produce the same hash should be computationally infeasible.
  • Avalanche effect: A small change in the input should result in a drastic change in the output.

How Keccak256 Works

Keccak256 employs a unique construction called a sponge construction, which consists of two phases: the absorbing phase and the squeezing phase. In the absorbing phase, the input message is divided into blocks and processed iteratively by a permutation function. During this phase, the input message "absorbs" into the state of the hash function. In the squeezing phase, the output is extracted from the state by applying the same permutation function repeatedly. This process continues until the desired output length is reached.

Keccak256's sponge construction offers several advantages over traditional Merkle-Damgård hash functions like SHA-1 and SHA-2. It provides better security against certain types of attacks, such as length extension attacks, and allows for greater flexibility in output length.

Keccak256 in Cryptocurrencies

Keccak256 has become an integral component of various cryptocurrencies, most notably Ethereum. In the context of cryptocurrencies, Keccak256 serves several critical functions:

  • Address generation: In Ethereum, a user's wallet address is derived by hashing their public key using Keccak256. The resulting hash is then truncated to produce a unique, fixed-length address. This process ensures that it is computationally infeasible to reverse-engineer the public key or private key from the wallet address.
  • Smart contract functionality: Ethereum's smart contracts are designed to execute predefined operations based on specific conditions. Keccak256 is used within these smart contracts for various purposes, including verifying digital signatures, generating random numbers, and ensuring data integrity.
  • Mining and consensus: Keccak256 is employed in Ethereum's previous Proof of Work (PoW) mining algorithm, called Ethash. Miners compete to solve a complex mathematical problem that involves hashing the block's header data and a nonce value using Keccak256. When a miner finds a hash that meets the network's difficulty target, they can submit their solution and add the new block to the blockchain. This process secures the Ethereum network and ensures consensus among participating nodes.
  • Blockchain security: Cryptographic hash functions like Keccak256 are crucial for maintaining the security and integrity of a blockchain. Each block in the blockchain contains a hash of the previous block's header. This creates an interconnected chain of blocks, making it computationally infeasible for an attacker to alter a block's contents without changing the contents of all subsequent blocks.
  • Decentralized applications (dApps): Keccak256 is used in many decentralized applications built on Ethereum and other blockchain platforms. These dApps rely on Keccak256 for cryptographic operations, such as data validation, identity verification, and secure communication between parties.


Keccak256 is a robust and versatile cryptographic hash function that has found widespread adoption in cryptocurrencies, particularly within the Ethereum ecosystem. Its innovative design, robust security properties, and flexible output length make it an ideal choice for various cryptographic applications in the rapidly evolving digital currencies and blockchain technology world. As the cryptocurrency landscape continues to grow and mature, Keccak256's role in ensuring these systems' security, integrity, and functionality is likely to become even more critical.