What do Merkle Trees Show in Cryptocurrency?

The Merkle trees associated with each cryptocurrency block present in the array constitute important data integrity features of the cryptography domain and IT in general.

To understand trees an example will be presented of a tree that will describe the relationship between its parts, from above downwards, from the leaf to the branch, and finally to the root.

Through these trees, for example of the tree, each node – leaf (leaf) contains a data set. Behind each such leaf, there is a parent node –
branch, which contains the data of the previous nodes in hashed form.

Usually in existing trees, nodes are allowed to have up to 2 children – leaves. At the beginning of the tree, there is the root, which includes all of the fragmented data that exists directly above it and summarizes the overall picture of the tree that follows.

In peer-to-peer networks, data verification is a fairly important process. This is because the data is distributed in many places creates difficulty. If a change is made to a data point of the network, it should then inform all the additional participants of the network.

Although the process of control is extremely important, it is time-consuming. For this reason, with the use of trees Merkle limits the amount of data sent over a network for control in the least. So instead of sending a whole set of files over the network, we simply send a hashed file to check the validity of the tree.

The protocol works between two computers – users with the steps:

  1. A sends B the file for review, hashed.
  2. B checks if this hash is consistent with the root of the tree.
  3. If there is an agreement, the process ends. In case of disagreement between the two, the process continues in the following.
  4. If there is a difference in a single hash, B asks for the roots of the two subtrees of the file.
  5. A performs the requested calculations of step 4 and returns them to B.
  6. Steps 4 and 5 are repeated continuously until the missing data(s) is found are consistent with network correctness.

In the case of Blockchain, Merkle trees are considered particularly important as make it possible to verify a transaction without having to download it off the entire network data. The reason the process is important is speed.

As the total data of a network can be particularly large in volume, the confirmation of the transaction can be carried out in a minimum time, without the need to wait to receive additional data.

The function performed by Merkle trees is to check the validity – the authenticity of data traded within a Blockchain.

The validation process can be carried out to check the correctness of the data it contains a blocked by the hashing process. By hashing from leaves – nodes must at the end match the hashed values ​​of parent nodes shown in the root.

At the end of this process and as long as no problems arise and some are rejected some node, it turns out that a leaf is a part of the tree.

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