Read about hash forecasts and the $50 million or more in liquidations that one tweet prompted. Learn what transpired around the Cobie tweet.

A SHA256 hash is an extended hash that you obtain by applying a fixed function to a certain input, to put it simply. Each input string's SHA256 hash is distinct. The ability to create hashes but not undo them (without brute forcing). They only work in one direction. This implies that you can demonstrate your knowledge of something at a particular time without actually disclosing what it is.

With SHA256 hash predictions, there are two main applications. To demonstrate your knowledge of something without alarming the market is the first use case. Without raising a commotion, you can make a forecast, expose the string after the outcome, and have cryptographic proof of your knowledge. The pursuit of clout is the second use case. You can release the string and appear to be an absolute genius if your SHA256 hash prediction you made online turns out to be accurate. Nobody will notice or care if you delete the tweet or otherwise ignore it if it doesn't come true.

Hash predictions do come with certain dangers, though. A quick computer can decipher a string if it is short or contains words from the common dictionary. It is more difficult for a computer to predict a string when it is longer or contains a "salt" of extra random characters.

Unsalted hash was posted by Cobie, and others immediately started cracking it. The string was immediately identified because it only contained five straightforward phrases, and a forecast regarding an Interpol Red Alert for CZ was made public. This led to numerous articles, tweets, and liquidations. Then, Cobie acknowledged that it was just a hearsay. If it were real, he would have joyfully published the input string to collect his internet points. If it weren't true, nobody would notice or care, thus there would be no consequences and it wouldn't be a huge concern.

People did, however, take note, and it became a big thing, which sparked a chain of occasions that had an impact on the market. It is significant to emphasize that hash forecasts carry dangers, including the possibility for market disruption, yet they can be useful in some settings. So, people should use caution and think about the possible effects of their actions when utilizing this instrument.

This news is republished from https://coinaquarium.io/