Merkle Tree

Written by Aidan Mott

Introduction

A Merkle Tree also know as a Binary hash tree is a “tree” that is constructed of the unconnected hashes of Bitcoin transactions in a Bitcoin block at the base of the tree. The base is then connected by branches (hash of two hashes at the base) to the top the tree up to the point of a single hash is left known as the Merkle root cointaining the value of the condensed hashes of all transactions in a Bitcoin block.

Merkle trees in Bitcoin are formed by the hash of transactions in each Bitcoin block. Merkle trees are important in Bitcoin because they allow for transactions to be verified in a batch of the transactions that share their same block rather than have to parse through the individual hashes of transactions. This means that Merkle root provides a single value that allows for the verification of any transaction inside the Merkle tree, this principle is what makes it possible to continuously verify the entire bitcoin blockchain without extreme computing measures.

Merkle trees provide two characteristics that provide the backbone for the security and usability of the Bitcoin Network. Merkle trees add to the ability for transactions to be tamper proof in the network because all transactions are calculated together into the Merkle root meaning that if any transactions inside the Merkle tree is changed the Merkle root value will change reflecting any tampering that occured. The second characteristic is that the fact that the hash of all transactions are condensed into Merkle roots meaning that it is exponentially easier to verify the entire history of the blockchain via the hash of the Merkle root rather than having to verify each individual hash of all transactions in the history of the blockchain.

Suggested Reading

Merkle Trees by Shaan Ray

Merkle Tree and Merkle Root Explained by Bisola Asolo

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