This is continuation of the part 1 I wrote.
Hash Pointer
Remember that hash function is:
If H(x) = H(y), then x = y
Hash pointer is simply something that point to x from function H( ). It is a chain property makes blockchain happens!
Do you wonder why there are many online ledgers automatically post?
All hash (string of numbers and letters) above are generating from hash function H( ) and Hash Pointer is information that link to Hash and its function. It can lead back to its original data set.
Why we need Hash Pointer? Because this property helps us to build data structure of cryptocurrencies (in this case Bitcoin) and create a hash tree called Merkle Tree!
Merkle Tree
Why we want to grow a tree? Because it creates a blockchain system that automatically track its transaction and user can verify payment without owning entire transaction ledgers.
Merkle Tree is a binary hash tree because it runs with factor 2.
In Bitcoin case, you need two sets of key, private and public. You use public key to receive payment and private key to validate transaction.
If and only if your private key matches your public key, your transaction is validate and it will go through Merkle Tree to make sure there is not discrepancy between the cryptocurrency you sent (or hash function you used).
That is it for Part 2!
If you unfamiliar with hash function, you can reference back to my Part 1 article.
Thanks for reading and I hope you learn something today!
