Merkle Tree

Merkle trees are a type of data structure commonly utilized in various technologies. Merkle trees are used to encapsulate blockchain data more effectively and securely. In the blockchain, this mechanism helps to structure the transactional data in a simplified way.

Blockchain operates through hashing, and hashing functions are constantly repeated after pairing and grouping data in a sequential manner. For example, AB and AC are hashed together in a single block to give the output ABC.

These outputs are hashed until a common or root hash is obtained, which contains the summary of all transactions in the block and is put as the block header.

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