By using hash functions to compress and efficiently store data, blockchain networks can reduce the costs associated with data management in several ways:

1. *Storage costs*: Reduced storage requirements lead to lower costs for data storage solutions.

2. *Bandwidth costs*: Faster data transfer and smaller data sizes reduce bandwidth costs.

3. *Computational costs*: Efficient data retrieval and verification reduce computational resources and energy consumption.

4. *Labor costs*: Automated data management processes reduce the need for manual intervention and labor costs.

5. *Infrastructure costs*: Scalable data management solutions reduce the need for expensive infrastructure upgrades.

By reducing these costs, hash functions enable blockchain networks to:

1. *Improve scalability*

2. *Enhance efficiency*

3. *Increase adoption*

4. *Support more complex applications*

5. *Reduce barriers to entry*

Overall, the cost savings enabled by hash functions contribute to the overall efficiency, scalability, and viability of blockchain networks.