Merkle Tree as the name suggests is a diagram of data that looks like an inverted tree. The transactions which need to be summarized, verified and secured represent the leaves (top portion) of the tree. Each transaction is identified with a ‘hash’ which is a set of numbers and alphabets that make up a unique ID. A set of two ‘hashes’ are linked together to form an intermediate hash which then looks like a branch of the tree. When an entire set of transactions are combined and sorted with this mechanism, it will result in a single hash called the ‘Merkle root’ at the top of the tree. The advantages of Merkle Tree mechanism are: • Reduces CPU processing time • Ensured better security
Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Each investor must do his/her own research or seek independent advice if necessary before initiating any transactions in crypto products and NFTs. The views, thoughts, and opinions expressed in the article belong solely to the author, and not to ZebPay or the author’s employer or other groups or individuals. ZebPay shall not be held liable for any acts or omissions, or losses incurred by the investors. ZebPay has not received any compensation in cash or kind for the above article and the article is provided “as is”, with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information.
