What exactly is the “Merkle tree” often mentioned in exchange proof of reserves?
My understanding: Exchanges also use Merkle trees for proof of reserves. The platform publishes a root hash, and each user can verify whether their balance was included by obtaining their own Merkle path.
A Merkle tree is a tree-like structure that hashes large amounts of data in pairs and combines them layer by layer. The hash at the very top is called the Merkle root.
What I do: Data in a lightweight wallet comes from the node it connects to. For large incoming payments, I cross-check them using several block explorers.
The header of every $BTC block records a Merkle root that summarizes all the transactions in that block.
My understanding: Exchanges also use Merkle trees for proof of reserves. The platform publishes a root hash, and each user can verify whether their balance was included by obtaining their own Merkle path.
A Merkle tree is a tree-like structure that hashes large amounts of data in pairs and combines them layer by layer. The hash at the very top is called the Merkle root.
What I do: Data in a lightweight wallet comes from the node it connects to. For large incoming payments, I cross-check them using several block explorers.
The header of every $BTC block records a Merkle root that summarizes all the transactions in that block.
