What is a Merkle tree, and why do blocks use one? Many people can’t explain it clearly!
Ethereum uses an improved Merkle Patricia Trie to record account states, transactions, and receipts, with the corresponding root hash stored in the block header.
The beauty of a Merkle tree is that a single short root hash can “lock in” thousands of transactions, and any change to even one of them will be detected.
Size your position according to your risk tolerance, and leave yourself a way out.
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