Blockchain Fundamentals

Merkle Tree

A Merkle tree is a data structure used in blockchain to efficiently and securely verify large sets of transactions. It works by hashing individual transactions and then pairing them into a binary tree until a single root hash is formed. This Merkle root is stored in the block header, allowing quick validation without needing the full dataset. Merkle trees enhance scalability, reduce data storage needs, and strengthen data integrity. They’re crucial for light clients and SPV (Simplified Payment Verification) systems, making them a core component of blockchain architecture.

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