Merkle Trees: An Efficient Summary Structure for Blockchain Data
A Merkle tree combines the hash values of transaction data layer by layer to ultimately form a Merkle root. It can check whether a transaction has been included in a block with relatively little data and computational resources, and helps detect data tampering.
How a Merkle Tree Is Formed
A Merkle tree first hashes each transaction in a block, then pairs the resulting hash values and hashes them again. This process is repeated layer by layer until only one final value remains: the Merkle root. It serves as a compact summary of all relevant transaction data and is written into the block header.
How It Helps Check Data
A Merkle tree allows validators to verify whether a transaction is included in a block without transmitting and checking the complete ledger item by item. If an underlying transaction or related data changes, its hash change propagates upward through the tree, ultimately producing a different Merkle root and exposing possible data modification.
Efficiency and Use Cases
Verification requires only a small amount of hash information related to the target transaction, so less data is transmitted between nodes and computational and storage demands are also lower. In addition to verifying block transactions, Merkle trees can be used for Proof of Reserves by organizing account-balance snapshots into a data structure that can be checked through an audit.
Original Tutorial
https://www.binance.com/zh-CN/academy/glossary/merkle-tree
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