# The Differences Between Hashing and Encryption

Since **hash functions** are a type of **cryptographic primitive** (building blocks used in security systems), they are often confused with **encryption**. But the two serve **different purposes**.

Here are the three key differences:

***

#### 1. Data Preservation vs. Data Loss

* **Hashing:** Produces a **fixed-length output** in clear text. It acts as a **digital fingerprint** of the input, and **data loss is not a concern**.
* **Encryption:** Encodes and **preserves the entire message**, so it can later be **decrypted** back into its original form.

👉 **Key takeaway:** Hashing is about **verification**, encryption is about **confidentiality**.

***

#### 2. Reversibility

* **Hashing:** A **one-way function**. It is **not reversible** — and that’s what makes it secure.
* **Encryption:** Must be **reversible**. The intended recipient needs to **decrypt** the message to read it.

👉 **Key takeaway:** Hashes stay one-way, encrypted data must come back.

***

#### 3. Collision Risk

* **Hashing:** Because outputs are **fixed length**, two different inputs can, in theory, produce the **same hash** — this is called a **collision**.
  * In practice, BSV uses **SHA-256** and **RIPEMD-160**, which make collisions **extremely rare** (probabilistically insignificant).
* **Encryption:** Since it **preserves 100% of the input**, each encrypted message produces a **unique output** — meaning **no collision risk**.

👉 **Key takeaway:** Hashes can collide (though rarely), encrypted data cannot.


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