What is a Merkle tree used for, and why do blocks depend on it?
If any transaction in a block is modified, its hash changes, affecting the hashes all the way up to the Merkle root. The block hash changes too.
To prove that a transaction is included in a particular 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 managing your funds, remember this above all: on platforms that provide proof of reserves, follow the official instructions and verify your own balance using the Merkle path.
$BTC 70988.99 (-3.72%)
Markets change in an instant, so don't rush to conclusions.
If any transaction in a block is modified, its hash changes, affecting the hashes all the way up to the Merkle root. The block hash changes too.
To prove that a transaction is included in a particular 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 managing your funds, remember this above all: on platforms that provide proof of reserves, follow the official instructions and verify your own balance using the Merkle path.
$BTC 70988.99 (-3.72%)
Markets change in an instant, so don't rush to conclusions.
