“Nonce” is a portmanteau of the phrase “number used only once.” It is a four-bit number that is appended to a hashed—or encrypted—block in a blockchain that, when rehashed, complies with the limitations on difficulty level.
On authentication protocols and cryptographic hash functions, nonces are frequently employed. A nonce is a pseudo-random number that is used as a counter during the mining process in the context of blockchain technology.
Crypto miners have to make several efforts to calculate a block hash that satisfies specific criteria while attempting to estimate a legitimate nonce. The first miner to find a nonce that produces a valid block hash during a competition to mine a new block is given the opportunity to add the following block to the blockchain and is rewarded for doing so. Nonces are used in cryptocurrencies as the number in a hash to validate the transactions and other data in a block.