Search our executive blockchain insights and services.
…Merkle trees in Bitcoin use a double SHA-256.Each leaf node is a hash of transactional data, and each non-leaf node is a hash of its previous hashes. Merkle trees are binary (two child nodes under each node) and therefore require an even number of leaf nodes. If the number of transactions is odd, the last hash will be duplicated once to create an even number of leaf nodes.In Proof of Reserves (PoR), a Merkle tree is an anonymised proof of client balances, allowing anyone to cryptographically ver…
Learn More
…It leverages the properties of Merkle trees (also known as hash trees), which are data structures with a digital fingerprint of the entire set of transactions in a blockchain, to organise and verify large amounts of data efficiently and securely.A Merkle tree is a binary tree where leaves of the tree represent individual pieces of data (like transactions). Each non-leaf node in the tree is a hash of its two child nodes, and the root of the tree, called the Merkle root, is a single hash that repr…
Learn More
…Verkle Tree A succinct definition of Verkle Tree Verkle TreeLevel UpNEWIndividualsBusinessesDevelopersDiscoverCompanyGLOSSARYVERKLE TREECopy linkShare on TwitterShare on FacebookShare on LinkedinVerkle TreeA Verkle tree is a data structure that combines the benefits of Merkle trees and vector commitments to enable more efficient proof generation and verification. Merkle trees are data structures commonly used in blockchains like Bitcoin and Ethereum to organise and verify large sets of data. The…
Learn More
…This can help reassure customers that the company is sufficiently liquid and solvent, and that the funds are accessible to the customers should they choose to withdraw. In light of recent developments in the crypto industry, PoR is crucial to: Provide transparency to customers on the availability and backing of funds.Enhance trust by allowing each customer to independently and cryptographically verify that their account balances are included in the PoR. How Is a PoR Conducted? PoR consists of …
Learn More
…Reviewing this usually provides how many bitcoins were transacted, which address received them, and from where. What Are Merkle Trees and Merkle Roots? Here’s a brief introduction to what a Merkle root is and how it relates to a Merkle tree. Merkle Trees In Bitcoin’s blockchain system, multiple transactions exist within a block. A Merkle tree summarises all the transactions in a block by producing a digital fingerprint of the entire set of transactions, thereby enabling users to verify whet…
Learn More
…Last but not least, this independent third-party utilises Merkle Trees allowing you to verify that your account balances were indeed included in the PoR.Which tokens are included in the verification?Mazars Group compared the assets held in on-chain addresses proven to be controlled by Crypto.com with customer balances through an auditor-overseen live query of a production database as of December 7, 2022, 00:00:00 UTC. The results of reserve ratio of verified assets were as follows:Does the verif…
Learn More
…Last but not least, this independent third-party utilises Merkle Trees allowing you to verify that your account balances were indeed included in the PoR.Which tokens are included in the verification?Mazars Group compared the assets held in on-chain addresses proven to be controlled by Crypto.com with customer balances through an auditor-overseen live query of a production database as of December 7, 2022, 00:00:00 UTC. The results of reserve ratio of verified assets were as follows:Does the verif…
Learn More
…Often, vapourware is never released or even officially cancelled.Full definitionVaultVaults are secure storage solutions for digital assets, designed with multiple layers of security for storing cryptocurrencies to protect against theft and hacking.Full definitionVerifiable Delay Functions (VDFs)A Verifiable Delay Function (VDF) is a mathematical puzzle that requires a certain amount of time and computational effort to solve; once solved, its correctness can be efficiently verified by anyone.Ful…
Learn More
…With sharding, validators no longer need to store the entire database, which helps to reduce costs of storage, as well as lower hardware requirements.The Verge is a technical upgrade that proposes to transition from Merkle trees to Verkle trees. Its purpose is to solve the problem of the Ethereum blockchain getting larger in size as time goes by. Switching to Verkle trees will only require block proposers to store state, and allow all other nodes to verify blocks statelessly. This would help to …
Learn More
…For instance: Public-key cryptography used in a transactionHashing for Bitcoin miningMerkle Trees for transaction positioning in blocks We can almost say that if you don’t understand cryptography, you don’t understand cryptocurrencies. To better learn, let’s dive deep into the world of cryptography. Symmetric and Asymmetric Encryption and Hash Functions Classification of cryptographic algorithms is based on the number of keys employed for encryption and decryption: symmetric encryption, as…
Learn More