This is a method of data structure in computing and cryptography, which takes the form of an upside down tree, where the input data represents the leaves and the output data represents the Merkle Root. This is a secure and efficient method of verifying the integrity of a large amount of data. On the network Ethereum, many transactions are streamed. These transactions are drawn from the Memory Pool and are condensed into blocks. Let’s assume that our block is composed of 8 transactions, ranging from T1 to T8. These transactions are the leaves of our Merkle tree. Making the Merkle tree of these transactions would produce the hash H1 (from T1 and T2), then the h3 hash (T3 and T4), the h4 hash (T5 and T6) and the H4 hash (T7 and T8). From this, we derive the hash K1 from H1 and h3, then K2 from h4 and H4. We continue according to the same scheme until we obtain the Merkle Root. The Merkle Root represents the final hash condensing the hashes of all the TXIDs of the block (the leaves). In the previous example, the Merkle Root is the hash of K1 and K2.