Merkle Tree and Verkle Tree are tools in crypto world that are used for the synchronization and verification of the data. In Bitcoin and many other cryptocurrencies, Merkle trees are deployed so that they can safely and securely encrypt the data over the blockchain. On the other hand, Verkle trees are usually used for proofs that are smaller in size. It carries a prime importance in the scaling upgrades of Ethereum. This article will comprehensively explain the difference between Merkle trees and Verkle trees and their working and benefits separately.
What are Merkle Trees?
A Merkle tree is also called as a “Hash Tree”. It is a binary tree that utilizes the cryptographic hash algorithms. It is a tree data structure that is used for the verification of the data. It functions in a way that every non-leaf node is a hash of its child nodes. It is used to keep intact the coherence of the data. For this purpose, it uses the hash functions.
Who Invented Merkle Trees?
For the purpose of constructing stronger and more powerful digital marks, Ralph Merkle gave the idea of Merkle trees in 1988. The Merkle trees are used to encrypt and verify the data more efficiently by decreasing the requirements of the memory. One of the most dominant benefits of Merkle tree is that it requires little amount of disc space as compared to many other data structures which makes it feasible to use.
What are Hash Functions?
Before understanding the concept of Merkle tree, one has to understand the function and working of a hash. The hash function actually plots an input for the output given, the output that is mentioned is termed as hash.
Hash is basically used to find out the data that exists in large amount.
What is the Structure of a Merkle Tree?
The blockchain in the crypto world consists of thousands of blocks where millions of transactions are occurring at the same time. This creates the problem of computing power and memory for the users. The best way for encrypting the data is by using minimum amount of data. In this way, one can save the computing power of the CPU and the data can be secured to a larger extent. This is the main function that is provided by a Merkle Tree.
The Merkle tree, forms the pairs of the transactions that are happening at a moment. Then it calculates the hash for each pair separately and store the information in the parent node. Then these steps are repeated again with the parent node, where the pairs are formed for the parent nodes and the hash is calculated for these pairs. The calculated value of the hash is then stored in the upper level of the parent node in the tree. This process is repeated again and again, until the root of the tree is reached.
There are different kinds of nodes present in the Merkle tree. These are
- Root Node
The root of the Merkle tree is also called as the “Merkle Root”. The information of the Merkle root is added and secured in the header of the block.
- Leaf Node
The hash values of each transaction occurring are stored in the leaf nodes. The data of every transaction that occurs on the block of blockchain is hashed. The hash value calculated is also known as transaction ID. This value is then secured safely on the leaf nodes.
- Non-Leaf Node
The hash values of the particular children are present on the non-leaf nodes. The non-leaf nodes possess the intermediate hash values of the transaction; therefore, they are called as intermediate nodes. This hash process goes on till the root of the tree.
The hash function, SHA 256 is used by Bitcoin that is used further to hash the data continuously, till one obtains the Merkle root. As the Merkle tree is binary in nature, it requires even number of leaf nodes to finally reach to the root and for the proper construction of Merkle tree. In case the leaf nodes are odd in number, the last remaining hash is then duplicated by the tree and in this way, it creates even number of leaf nodes in order to construct a proper Merkle tree.
How Does a Merkle Tree Work?
The Merkle tree contains a cryptographic hash of the data block that has the labelled leaf nodes. Moreover, it also contains the child nodes that are marked as the non-leaf nodes of the data block.
A digest is generated by the nodes, that depends on all the qualities of the subtree that it belongs to. Sometimes, some additional characteristics are also assigned to the leaves. In the Merkle tree, the hash of the attributes is calculated by the leaves themselves. On the other hand, progressing from left to right, the children’s digest is computed by the parents.
Merkle tree is actually constructed on bottom to up type. The hash values are calculated in the ascending order means from lower point to the highest point. By analyzing the data on the Merkle tree, it can be seen that Merkle tree is basically constructed in inverted direction.
Is Ethereum Blockchain a Merkle Tree?
A Merkle tree known as “Merkle Patricia Trie” is used by the Ethereum blockchain that is cryptographically authentic and is used to store all the keys and values by offering a data structure.
Also read:In the Ethereum execution layer, the Merkle Patricia Tree is used by all the Merkle trees on the blockchain. As there exists only one worldwide state tree, the state trie updates itself with the course of time. The storage tree is used to keep all the contract data safe. Every block over the blockchain, possesses a separate transaction tree that stores the bindings such as value and key pairs. There are separate receipts tree for every pair. Over the time, these receipts tree are not updated.
Applications of Merkle Trees
- In the distributed systems, where the data has to be stored separately, the Merkle trees are beneficial in such situations. They help to store the data at different places.
- Merkle trees are used in the blockchain network and Bitcoin.
- Merkle trees are used to keep an eye on the anomalous and inconsistent behavior.
- Merkle trees are also being used to find out any uncertain situation among the duplicates of the complete database.
What is the Importance of Merkle Tree in Blockchain?
The Merkle trees find their application in the cryptocurrencies such a Bitcoin and many others where they can encrypt and secure the data over the blockchain more efficiently. The major issue is to identify the Merkle tree in the blockchain. This can be done so by identifying the three fundamental parts of the Merkle tree associated with the blockchain. These parts are Leaf Nodes, Merkle Root, and Non-leaf Nodes.
In the leaf nodes, the transaction IDs (TXIDs) or the transaction hashes are kept safe and secured and the block explorer could be used to view them. Then just next to the leaf nodes, there is present a non-leaf nodes layer that exists in pairs and is hashed simultaneously. The hash of the two leaf nodes is contained in the two non-leaf nodes above them.
As the tree decreases in the width while moving on the top, the non-leaf nodes are continuously hashed together in the form of pairs. This results in the creation of nodes that are half in number in each layer. The final layer of non-leaf node will contain the two nodes that will ultimately them make the Merkle root. The Merkle root is the place where the leaf nodes are verified and the last hash process of the Merkle tree occurs.
The Merkle root that is stored in the header can be compared with the Merkle root that is kept in the block’s data. This can help to identify any illicit or false activity happened. Any manipulation can be detected by the miners. The hashing value that has to be recovered to get the Merkle root and the values that needs to be proved are combined by the Merkle proof.
Moreover, the Merkle trees are supported by the Simple Payment Verification (SPV). This method is feasible and easy to use as it allows to verify and encrypt any transaction without the need to download the whole blockchain. Therefore, a crypto wallet or any light node can be used to carry out the transactions.
What are Verkle Trees?
Verkle trees are also used to encrypt and give a structure to a sufficient data amount. It does so by creating a spectator that may provide the proof about the items present in the data and the different pieces of data present over the blockchain. This witness has to give the testimony about the data products, and this can only be done by having an access directly to the roots of the tree.
Who Invented Verkle Trees?
Verkle Trees are not as old as the Merkle trees. John Kuszmaul invented the Verkle trees in 2018. The Verkle trees are not yet as common and are still unknown to many people as many other cryptographic structures. The structure of a Verkle tree resembles the structure of a Merkle Patricia tree possessed by Ethereum.
The node of the Verkle tree has one of the following properties mentioned below.
- It can be a leaf node that possesses a value and a key.
- It is empty.
- It can be an intermediate node that contains a described number of children.
Features of a Verkle Tree
Being efficient in size-proofing is one of the most dominant features of a Verkle tree. In order to construct a proof for a tree that may contain almost more than a billion data points, a Verkle tree would require less than 150 bytes. On the other hand, a normal Merkle tree would require 1 kilobyte to do the same job. To define the data, a Verkle tree has to use a system that proves it called as the “Polynomial Commitments”. This system relies upon the polynomial functions to do so.
What is the Structure of a Verkle Tree?
The Verkle tree itself consists of two nodes
- The Extension Node
The extension node is capable of representing multiple values at the same time. As calculated by the sources, the extension node can keep about 256 different values that may have the stem but carry distinct suffixes.
- The Inner Node
The inner node also has multiple extensions further. It can have 256 children too that can be some other extension node or the other node.
In order to calculate the hash value of the intermediate node, it uses the hash value of the children of the nodes. One of the main disadvantages of Verkle trees is that the cost of the Verkle trees is more than the cost of Merkle Patricia trees. This creates a major difference among the structural components of both the trees.
There exists the only restriction in the structural construction of the Verkle trees that if the width is kept very large, the proofs will need a longer time span to be produced. This will result in decrease in the length of the proofs, and they will continuously become short as there occurs an increase in the width.
Applications of a Verkle Tree
- Verkle trees are capable of decreasing the proof size that ultimately results in decrease in the bandwidth.
- Verkle trees can be used in public key directories and consensus protocols
- Verkle trees can find their application in cryptocurrencies such as Bitcoin
- Verkle trees can be used to secure the data. For this purpose, they can be used in secured file systems and encrypted web applications.
All the above-mentioned applications are using Merkle trees at the present, but Verkle trees can be deployed in all the given systems too.
What is the Importance of Verkle Trees in Blockchain?
For a very large amount of data, the Verkle trees allow the decreased data sizes. The network quality and communication are affected by the length of the proof that is normally algorithmic in size. The Verkle proof is actually the witness of the data stored in a huge quantity. This data can be compared and encrypted by anyone that has the access to the root of the tree.
In order to proof the data, the prover has to show at least one evidence that contains the demonstration of the children to parents’ links, leading to leaf nodes and then to the root of the tree. The size of the proof in Verkle tree can be decreased almost by six to eight times as compared to the Merkle tree. And if compared with the Ethereum Patricia tree, the size could decrease by almost twenty to thirty times.
Merkle Trees vs. Verkle Trees
A lot of differences can be detected among the properties and functions of Merkle trees and Verkle trees. One of the most dominant one is the difference between Merkle proof and the Verkle proof.
In a Merkle tree, the witness of the value is provided by the complete bunch of the sister nodes that may also include the Merkle Patricia trees. There must be all the nodes of the tree included in the proof. It is mandatory that the node that is being proved should have at least a common node with the parent. On the contrary, the sister nodes are not required in the Verkle tree. One has to just provide a small amount extra along with the path to the proof.
The function and usage of the Merkle tree is same as the Verkle tree. The actual idea behind the Verkle tree construction is to construct a Merkle tree by the substitution of vector commitments that are normally required for the hash functions in cryptography. The Verkle trees, however, are more efficient due to their smaller size in bytes that makes them more effective and easier to use.
As the Merkle trees are shaped as normal trees and easier to be analyzed, they can be easily updated in smaller portions. On the other hand, the Verkle trees are a little complicated and contain the polynomial commitments that are complex and require the complete alteration of the whole curve simultaneously. This could be a difficult process as to calculate all the evidences together.
As the Merkle roots are formed in the Merkle tree, the people all over the world can easily and funds and receive them in any part of the world via their crypto wallets by using their electronic devices such as smart phone or desktop computers. This has made transactions easier globally. On the other hand, in the Verkle tree, the vector commitments could be substituted among the hashes in the Merkle tree. This increases the efficiency and effectiveness of the wider factors of the branches.
Conclusion
Merkle trees as discovered before were being efficiently used in the crypto world to encrypt and verify the data safely however, for smaller data sizes, the miners have found Verkle trees more useful and effective.
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