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scheme of the blockchain. 2.2.2.2 History Much like Bitcoin, the blockchain can be used to find the state of the system at any point in time. This can be done by replaying each transaction from the very first block up to the point in question. However, in contrast to Bitcoin, most nodes do not keep a full copy of the data for every point in time. Ethereum allows for old data to be pruned from the blockchain. The blockchain remains consistent as long as the blocks are valid, and data is stored outside of the blocks, so technically it is not required to verify the proof-of-work chain. In contrast to Bitcoin, where to find the balance of an account a node must replay all transactions leading up to that point, Ethereum stores state by keeping the root hash of the Merkle Patricia Tree in each block. As long as the data for the last block (or any past blocks) is available, future operations can be performed in the Ethereum network. In other words, it is not necessary for the network to replay old transactions, since their result is already available. This would be akin to storing the balance of each account in each block in the Bitcoin network. Figure 2.5: Partial historical state in the blockchain 35PDF Image | Intro to Ethereum and Smart Contracts
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