What exactly is a “Merkle tree,” often mentioned in exchange proof-of-reserves reports?
A Merkle tree’s advantage is that a single, short root hash can “lock in” a large number of transactions, and any change to even one transaction will be detected.
To prove that a transaction is included in a block, you only need a handful of hashes along the path from that transaction to the Merkle root. The number grows logarithmically with the number of transactions.
You only understand after paying the price: read the instructions first.
Markets are always full of surprises, so think ahead about what to do if your judgment turns out to be wrong.
$BTC 81646 (-0.84%)
A Merkle tree’s advantage is that a single, short root hash can “lock in” a large number of transactions, and any change to even one transaction will be detected.
To prove that a transaction is included in a block, you only need a handful of hashes along the path from that transaction to the Merkle root. The number grows logarithmically with the number of transactions.
You only understand after paying the price: read the instructions first.
Markets are always full of surprises, so think ahead about what to do if your judgment turns out to be wrong.
$BTC 81646 (-0.84%)