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Merkle Tree

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Table of contents
    1. 0.2. How It Works
    2. 0.4. Why It Matters in Blockchain

A Merkle Tree is a data structure used in blockchain and cryptography that organizes and verifies large sets of data efficiently using hash functions.

How It Works

Each leaf in a Merkle Tree is a hashed piece of data (like a transaction), and each pair of leaf hashes is combined and hashed again, continuing up the tree until a single top hash—the Merkle Root—is formed. This root can represent and validate the integrity of all data beneath it.

Why It Matters in Blockchain

Merkle Trees help blockchains verify data quickly and securely without needing to download or check every single transaction. This structure also makes lightweight clients like SPV (Simplified Payment Verification) possible.