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What is a Merkle tree and how does it work?

A Merkle tree, or hash tree, is a tree data structure in which every leaf node is labelled with a cryptographic hash of a data block, and non-leaf nodes are labelled with the cryptographic hash of their children. It allows for efficient and secure verification of large data structures. Named after Ralph Merkle who patented it in 1979, it serves as a generalization of hash lists and hash chains.

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