What Is Simplified Payment Verification (SPV) and Its Role in Lightweight Wallets?
Simplified Payment Verification (SPV) is a method that allows lightweight wallets to verify the inclusion and validity of transactions without downloading the entire blockchain. SPV clients only download the block headers, which contain the Merkle Root.
They then request a Merkle Proof for a specific transaction. By using the proof to recompute the Merkle Root and matching it against the header's root, the wallet confirms the transaction's validity and inclusion.
This significantly reduces the storage and bandwidth requirements for users.