merkle-segments

Merkle Segments

Overview

Merkle Segments play a critical role in the Haircomb system by enabling the routing of COMB (Haircomb’s cryptocurrency) to one of 2^16 predetermined destinations. The destination is selected through a decision made by a Decider, which acts similarly to a key in cryptographic systems. Merkle Segments utilize the Merkle tree structure to ensure data integrity and facilitate efficient transaction routing. This system not only enhances scalability but also introduces flexibility for a variety of use cases like trading and decentralized decision-making.

Structure and Routing

Merkle Segment Structure

  • Definition: A Merkle Segment is a unit in the Haircomb system that facilitates the movement of COMB to a specific address within a predetermined set of destinations. Each Merkle Segment is defined by the hash of the Short Decider (public key) and the Merkle Root (which encodes the set of possible destinations).
  • Merkle Tree Overview: Merkle Segments leverage the Merkle tree structure, a binary tree where each node is the hash of its child nodes, enabling secure and efficient verification of large datasets. In this context, the leaf nodes represent possible destinations for COMB, while the root hash uniquely identifies the segment.
  • Components: The key components of a Merkle Segment include:
      • Short Decider: The public key used to define the segment.
      • Merkle Root: The root of the Merkle Tree, which encodes the set of possible destinations.
      • Long Decider: The signature used to finalize the decision on which destination will receive the COMB.

Routing

  • Routing Mechanism: The routing process in Haircomb is governed by the Decider’s choice. Each Merkle Segment routes COMB to one of 2^16 possible addresses, which are organized in a Merkle tree. The Decider selects the destination by signing a specific leaf in the tree, and the proof of this selection is verified against the Merkle root.
  • Data Retrieval: Data retrieval in Merkle Segments is achieved through Merkle proofs. A Merkle proof is a sequence of hashes that link a specific leaf node (destination) to the Merkle root. This proof enables any party to verify that a given destination is indeed part of the original set without needing access to the entire dataset.
  • Efficiency: By using Merkle trees, the system benefits from logarithmic scalability. The proof size grows logarithmically with the number of destinations, making it possible to handle large sets of data efficiently. The use of Merkle Segments also ensures that the verification process remains lightweight, enhancing overall performance.

Use Cases and Examples

Use Case 1: Data Integrity Verification

  • Description: One of the primary uses of Merkle Segments is to verify data integrity in a decentralized manner. By leveraging Merkle proofs, Haircomb ensures that any change in the data (e.g., the destinations for COMB) will result in a completely different Merkle root, making tampering easy to detect.
  • Process: The process begins with the creation of a Merkle Segment, where the possible destinations are hashed into a Merkle tree. When a decision is made, a Merkle proof is used to show that the selected destination is valid within the tree. This proof is then verified against the Merkle root and the Long Decider.
  • Outcome: This system ensures robust data integrity, as any unauthorized modifications to the data will invalidate the Merkle proof, making it impossible to reroute COMB to an unintended destination.

Use Case 2: Blockchain Data Management

  • Description: Merkle Segments are also used to manage blockchain data, allowing for more efficient transaction processing and off-chain data storage. By keeping transaction-related data off-chain and using Merkle proofs to verify outcomes, Haircomb can drastically reduce the size of on-chain data.
  • Process: In this use case, a trusted third party creates a Merkle tree with possible destinations (e.g., buyer’s and seller’s addresses). A Merkle Segment is then funded by the seller, and a Decider is used to determine whether the funds should be routed to the buyer or returned to the seller based on conditions agreed upon beforehand.
  • Outcome: This process allows Haircomb to handle transactions off-chain, reducing the load on the blockchain while maintaining the same level of security and integrity. It also supports complex conditional transactions, improving flexibility in decentralized trading environments.

Summary

Merkle Segments form the backbone of Haircomb’s transaction and data routing system. By combining the cryptographic power of Deciders with the scalability of Merkle trees, Haircomb achieves a secure, efficient, and flexible method for routing transactions and verifying data integrity. These segments enable powerful use cases, including decentralized trading, data integrity checks, and blockchain data management, making them integral to the broader Haircomb ecosystem.