Blockchain & Cryptocurrency Glossary

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Source of Truth Verification

1 min read
Pronunciation
[sawrs uhv trooth ver-ih-fi-kay-shuhn]
Analogy
Like checking a document against the official government archive rather than relying on copies that may have errors.
Definition
The practice of validating data against an authoritative, cryptographically-secured origin to ensure integrity and authenticity.
Key Points Intro
Source of truth verification ensures on-chain data reliability by anchoring to trusted references.
Key Points

Anchoring: commits data hashes to a blockchain or trusted ledger

Proofs: uses Merkle proofs or digital signatures to verify inclusion

Decentralization: multiple anchors reduce single-point trust

Auditing: enables third-party validation of historical records

Example
A supply-chain dApp records shipment manifests’ Merkle root on Ethereum; auditors verify individual manifests via Merkle proofs against the published root.
Technical Deep Dive
Data providers generate Merkle trees over batches of records and submit root hashes in transactions. Verifier contracts expose `verifyProof` functions to check leaf-to-root paths. Off-chain services fetch on-chain commitments and deliver proofs via REST or oracle calls. Threshold-sig schemes distribute trust among multiple signers.
Security Warning
If the anchor chain is compromised or forks, verification assumptions may break.
Caveat
Anchoring frequency balances update latency with transaction costs.

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