Digital signature and hash algorithms used in Bitcoin and Ethereum

Abstract

Digital signature and hash algorithms are essential components of the blockchain. Bitcoin and Ethereum use the same digital signature scheme Elliptic Curve Digital Signature Algorithm (ECDSA). However, they use the different hash algorithms. Bitcoin chooses to use Secure Hash Algorithm (SHA), and Ethereum uses Keccak-256. This paper studies the digital signature ECDSA by looking into its design, implementation and security. ECDSA is a variant of Digital Signature Algorithm (DSA). It requires a shorter key length than Rivest–Shamir–Adleman (RSA), so it was preferred to use in the blockchain. Furthermore, this paper will also explore the design and implementation of SHA-256 and Keccak- 256. Bitcoin chose to use SHA-256 since it came out earlier than Keccak-256 with adequate security. Conversely, Keccak-256 is preferred by Ethereum since it has better performance and security compared to SHA-256. The role of SHA-256 and Keccak-256 in Bitcoin and Ethereum are also explored. SHA-256 and Keccak-256 are used in the blockchains’ proof-of-work (or proof-of-stake) and merkle tree structure. The paper will also look into their security by analyzing the result of possible attacks against them. In addition, the paper will provide some thoughts on the security of ECDSA, SHA-256 and Keccak-256 by analyzing their designs and possible attacks.