What is Merkel Tree?
Posted: Fri Mar 28, 2025 9:48 am
What is Merkel Tree?
A Merkle Tree (also called a Hash Tree) is a cryptographic data structure used in blockchain to efficiently and securely verify data integrity.
How It Works:
Hashes Transactions – Each transaction in a block is hashed individually.Pairs of Hashes Are Combined – The hashed transactions are paired and combined, then hashed again.Continues Until a Single Root Hash (Merkle Root) is Formed – This final hash (Merkle Root) represents all transactions in the block.Stored in the Block Header – The Merkle Root is stored in the block header for quick verification.
Why Is It Important?
Efficient Verification – Instead of checking all transactions, a user can verify if a transaction exists by tracing its hash path.
Reduces Data Storage – Instead of storing every transaction, only the Merkle Root is needed.
Enhances Security – Any modification in a single transaction changes the entire Merkle Root, making fraud easily detectable.