Many users prefer to store their digital assets with centralized exchanges for ease of use, but doing so exposes them to the risk of losing their assets due to external or internal theft.
Bitcoin users commonly do not realize that Merkle Tree, in the context of Bitcoin, is an inherent part of Simplified Payment Verification (SPV).
Bitcoin uses a binary tree structure to collapse a huge set of transactions into an easily searchable path, which is only necessary when millions or billions of transactions are included in a block.
In his presentation, the curriculum specialist of Bitcoin Association emphasized that it’s the transactions within a block that shape the ledger.
Hash power is the reward a node gets for having the best fitness, and the least wasted proof of work is the prize the hash operators get for choosing the node with the best array of costly signals.
The Merkle tree concept was integrated into Bitcoin when it was first designed by Satoshi Nakamoto and the idea was to make digital currency’s use as a fiat alternative.