A Merkle Tree is a data structure used in blockchain technology to help minimize the amount of data that must be verified by a node in the network. It works by taking a series of hashes of the transactions in a block and then arranging them in a tree-like structure.
Each non-leaf node in the Merkle Tree contains the hash of its child nodes, and the root node of the tree contains the hash of all transactions in the block. This allows a node in the network to verify only the root hash of the Merkle Tree, rather than the entire set of transactions in the block, thus reducing the amount of data that must be transmitted and verified.
Additionally, the Merkle Tree structure enables efficient verification of individual transactions within a block. A node can verify the presence of a specific transaction by comparing the hashes in the tree, starting from the root and moving towards the leaves. This process can be accomplished with a minimal amount of data transfer, making it an efficient method for verifying transactions in a blockchain network.
In conclusion, the use of a Merkle Tree in blockchain technology provides an efficient and secure method for verifying transactions and reducing the amount of data that must be transmitted and stored by nodes in the network.
Blockchain – Space Optimization using Merkle Tree
The use of Merkle Tree in the blockchain solves the issue of disk space in a node. The block header in the blockchain now only contains the hash of the previous block, a Nonce, and the Root Hash of all the transactions in the current block. The Root Hash includes the hashes of all the transactions within the block, thus allowing for pruning of the actual transactions to save disk space.
This strategy can result in significant savings in disk space and is commonly used by normal clients who only need to receive payments from others. However, miners need to store the full blockchain.
Verifying Payments without Full Blockchain Traceability
The question arises on how a receiver can verify a payment without having the ability to trace the received coin back to its origin, since they do not have the full blockchain stored.
