What:

How:

  • Imagine you have a block of thousands of transactions.
  • You hash them recursively in a tree manner, until you get a single hash for the root.
  • If someone claims a hash belongs to that tree, they send it (and a few siblings) and you can compute their hashes. If the roots agree, then it does belong. (Proof Of Inclusion - without needing to download the entire tree).

Benefits: