The Merkle tree, explained in a few sentences:
To prove that a transaction is included in a block, you only need a small number of hashes along the path from that transaction to the Merkle root. The number grows logarithmically with the number of transactions.
When a block contains thousands of transactions, proving that one transaction is included takes only a dozen or so hashes. You don’t need to download every transaction, which is crucial for mobile wallets.
On platforms that provide proof of reserves, you can follow the official instructions and use the Merkle path to verify your own balance.
$BTC 80488.6 (+0.33%)
To prove that a transaction is included in a block, you only need a small number of hashes along the path from that transaction to the Merkle root. The number grows logarithmically with the number of transactions.
When a block contains thousands of transactions, proving that one transaction is included takes only a dozen or so hashes. You don’t need to download every transaction, which is crucial for mobile wallets.
On platforms that provide proof of reserves, you can follow the official instructions and use the Merkle path to verify your own balance.
$BTC 80488.6 (+0.33%)