Understanding a Merkle Root
A blockchain is composed of various blocks that are linked with one another (hence the name blockchain). A hash tree, or the Merkle tree, encodes the transaction data in an efficient and secure manner. It enables the quick verification of blockchain data, as well as the quick movement of large amounts of data from one computer node to the other on a peer-to-peer blockchain network.
Every transaction occurring on the blockchain network is hashed. However, these hashes are not stored in sequential order on the block but in the form of an upside-down tree structure such that each hash is hashed with another hash until all hashes have been turned into one hash.
This one remaining hash is called the Merkle root.