CryptoURANUS Economics: Merkle Tree: Defined in CryptoCurrency


Tuesday, August 7, 2018

Merkle Tree: Defined in CryptoCurrency

Merkle Tree: Defined in CryptoCurrency


A Merkle tree is defined as a way to organize lots of data in a small, efficient and secure package.

In 1979 Ralph Merkle, a computer scientist, created a patent for Merkle trees. A Merkle tree uses computer technology known as “hashing” to take information and turns it into letters and numbers of a certain length.

Merkle Tree

For example, “I like bitcoin” can be hashed and will equal:


If I were to capitalize the “b” in bitcoin, so it says, “I like Bitcoin” the hash will be completely different:

Hashes cannot be reversed to get the original text. But you can verify the above hashes are correct simply by going to this website and typing in the same text as above:

A Merkle tree works like this:

  1. Two units of information are individually hashed. These are known as Merkle leaves.
  2. Those two hashes are then hashed together. These are known as Merkle branches.
  3. Multiple branches are hashed together finally getting one single hash. This is known as a Merkle root.

A Merkle tree is useful because it allows computers to verify information at the bottom of the tree, the leaves, without having to store the entire set of information.

No comments: