Incremental hashing of a cryptographic transcript supplies successive encoded message bytes to one continuing cryptographic hash function state. Finalizing after the selected messages gives the same transcript hash as hashing their full concatenation in one call. TLS explicitly permits implementing the handshake computation using a running hash.[ref]
For an original SHA-256 example, updating with ASCII ab and then c gives the same result as one update with abc:
ba7816bf8f01cfea414140de5dae2223b00361a396177a9cb410ff61f20015ad.
A chunk boundary is an input-delivery detail. It does not insert a separator byte or end a message. A continuing implementation must preserve the processed bit count and any incomplete block as well as its chaining state; final padding encodes the complete input length. SHA-256's specification processes 512-bit blocks and pads the complete message before its final compression operations.[ref]
In particular, and specify different inputs. The latter inserts a completed digest, with its already finalized hashing boundary, where the original bytes belonged. It is not an incremental implementation of the former.
The protocol must still define which bytes enter the state. TLS includes handshake headers in the transcript hash and specifies a special first-message substitution after a retry. A running hash implements that prescribed input, rather than defining the transcript by itself.[ref] An unkeyed digest also supplies no sender authentication by itself; the protocol must bind it through its specified digital signature or message authentication code.

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