Overview
In a Merkle tree, every 'leaf' node is a hash of a data block (like a transaction), and every non-leaf node is a hash of its children. The single hash at the top is called the Merkle Root.
Benefits in Blockchain
- Efficiency: Allows nodes to verify if a transaction is in a block without downloading the entire block.
- Integrity: Any change to a single transaction will change the Merkle Root, making tampering easy to detect.
- Scalability: Essential for light nodes and Layer 2 solutions.