fake transaction into the bottom of a Merkle tree, this change will cause a change in the
node above, and then a change in the node above that, finally changing the root of the
tree and therefore the hash of the block, causing the protocol to register it as a completely
different block (almost certainly with an invalid proof of work).
The Merkle tree protocol is arguably essential to long-term sustainability. A "full node" in
the Bitcoin network, one that stores and processes the entirety of every block, takes up
about 15 GB of disk space in the Bitcoin network as of April 2014, and is growing by over a
gigabyte per month. Currently, this is viable for some desktop computers and not phones,
and later on in the future only businesses and hobbyists will be able to participate. A
protocol known as "simplified payment verification" (SPV) allows for another class of
nodes to exist, called "light nodes", which download the block headers, verify the proof of
work on the block headers, and then download only the "branches" associated with
transactions that are relevant to them. This allows light nodes to determine with a strong
guarantee of security what the status of any Bitcoin transaction, and their current balance,
is while downloading only a very small portion of the entire blockchain.
Alternative Blockchain Applications
The idea of taking the underlying blockchain idea and applying it to other concepts also
has a long history. In 1998, Nick Szabo came out with the concept of secure property titles
with owner authority ↗ , a document describing how "new advances in replicated database
technology" will allow for a blockchain-based system for storing a registry of who owns
what land, creating an elaborate framework including concepts such as homesteading,
adverse possession and Georgian land tax. However, there was unfortunately no effective
replicated database system available at the time, and so the protocol was never
implemented in practice. After 2009, however, once Bitcoin's decentralized consensus
was developed a number of alternative applications rapidly began to emerge.
Namecoin - created in 2010, Namecoin ↗ is best described as a decentralized name
registration database. In decentralized protocols like Tor, Bitcoin and BitMessage, there
needs to be some way of identifying accounts so that other people can interact with
them, but in all existing solutions the only kind of identifier available is a pseudorandom
hash like 1LW79wp5ZBqaHW1jL5TCiBCrhQYtHagUWy . Ideally, one would like to be
able to have an account with a name like "george". However, the problem is that if one
person can create an account named "george" then someone else can use the same