Blockchain Component: Merkle TreeiFour Team - 15 Mar 2019
As explained (Blockchain council, 2017) , Merkle tree is very important concept in cryptography that helps in data verification of large data securely and efficiently. In view of Blockchain consulting companies, A Merkle tree is the summary of all transactions in a block and is a digital fingerprint of the entire set of transactions. Thus, any user can verify whether a transaction is included in a Block or not.
Merkle tree is created by repeatedly hashing pairs of nodes until there is only one hash left. This last hash is called the Root Hash or the Merkle Hash. Merkle tree is constructed from the bottom up from hashes of individual transactions. (Hackernoon, 2017)
Uses of Merkle tree:
Merkle tree separates the validation of the data from data itself hence by significantly reducing the amount of data that a trusted authority has to maintain for verification Purposes. It can reside locally, on a distributed system.
Merkle tree has many so other benefits too:
- They require little disk space or little memory as the proof which are computationally easy and fast.
- Their ability to prove that a log is complete and consistent is essential to blockchain technology and have general ledger concept.
- Merkle tree benefits miners and users of the blockchain by receiving transactions from peers.
- They provide a way to validate and verify the data.
Merkle trees are the crux component of Blockchains and effectively allow them to function with immutability and transaction integrity. The role that they play in distributed networks is crucial to grasp within cryptocurrencies, as they are more complex systems as viewed by many blockchain companies.