diff --git a/fragment/Merkle Tree.go b/fragment/Merkle Tree.go
new file mode 100644
index 0000000..2c1e4c2
--- /dev/null
+++ b/fragment/Merkle Tree.go	
@@ -0,0 +1,148 @@
+/*
+File Name:  Merkle Tree.go
+Copyright:  2021 Peernet s.r.o.
+Author:     Peter Kleissner
+
+Generates the merkle tree based on input data.
+In case of uneven number of fragments, the last fragment will be hashed against the top hash of all the left tree to create the merkle root hash.
+*/
+
+package fragment
+
+import (
+	"errors"
+	"io"
+
+	"lukechampine.com/blake3"
+)
+
+// MerkleTree represents an entire merkle tree
+type MerkleTree struct {
+	// information about the original file
+	fileSize      uint64
+	fragmentSize  uint64
+	fragmentCount uint64
+
+	// list of hashes
+	fragmentHashes [][]byte   // List of hashes for each fragment
+	rootHash       []byte     // Root hash.
+	middleHashes   [][][]byte // All hashes in the middle, bottom up.
+}
+
+// NewMerkleTree creates a new merkle tree from the input
+func NewMerkleTree(fileSize, fragmentSize uint64, reader io.Reader) (tree *MerkleTree, err error) {
+	if fragmentSize == 0 {
+		return nil, errors.New("invalid fragment size")
+	}
+
+	tree = &MerkleTree{
+		fileSize:      fileSize,
+		fragmentSize:  fragmentSize,
+		fragmentCount: fileSizeToFragmentCount(fileSize, fragmentSize),
+	}
+
+	// Special case: No fragments, in case of empty data.
+	if tree.fragmentCount == 0 {
+		hash := blake3.Sum256(nil)
+		tree.rootHash = hash[:]
+
+		return tree, nil
+	} else if tree.fragmentCount == 1 {
+		// Special case: Single fragment.
+		data := make([]byte, fileSize)
+		if _, err := io.ReadAtLeast(reader, data, int(fileSize)); err != nil {
+			return nil, err
+		}
+
+		hash := blake3.Sum256(data)
+		tree.rootHash = hash[:]
+
+		return tree, nil
+	}
+
+	// calculate the hash per fragment
+	data := make([]byte, fragmentSize)
+	remaining := fileSize
+
+	for n := uint64(0); n < tree.fragmentCount; n++ {
+		if fragmentSize > remaining {
+			fragmentSize = remaining
+		}
+
+		if _, err := io.ReadAtLeast(reader, data, int(fragmentSize)); err != nil {
+			return nil, err
+		}
+
+		// hash the fragment
+		hash := blake3.Sum256(data[:fragmentSize])
+
+		tree.fragmentHashes = append(tree.fragmentHashes, hash[:])
+
+		remaining -= fragmentSize
+	}
+
+	// calculate the intermediate hashes
+	tree.calculateMiddleHashes(0)
+
+	return tree, nil
+}
+
+func fileSizeToFragmentCount(fileSize, fragmentSize uint64) (count uint64) {
+	return (fileSize + fragmentSize - 1) / fragmentSize
+}
+
+func (tree *MerkleTree) calculateMiddleHashes(level uint64) {
+	if len(tree.fragmentHashes) == 0 {
+		return
+	}
+
+	var newHashes, inputHashes [][]byte
+
+	if level == 0 {
+		inputHashes = tree.fragmentHashes
+	} else {
+		inputHashes = tree.middleHashes[level-1]
+	}
+
+	for n := 0; n+1 <= len(inputHashes)-1; n += 2 {
+		newHashes = append(newHashes, calculateMiddleHash(inputHashes[n], inputHashes[n+1]))
+	}
+
+	// Uneven leafs? in this case the new hash is just a copy of the uneven one. No point in artifically recalcualting it with itself like Bitcoin does.
+	// For other possible implementations see https://medium.com/coinmonks/merkle-trees-concepts-and-use-cases-5da873702318.
+	if len(inputHashes)%2 != 0 {
+		newHashes = append(newHashes, inputHashes[len(inputHashes)-1])
+	}
+
+	if len(newHashes) == 1 {
+		// Only one hash generated.
+		tree.rootHash = newHashes[0]
+	} else if len(newHashes) > 1 {
+		tree.middleHashes = append(tree.middleHashes, newHashes)
+
+		tree.calculateMiddleHashes(level + 1)
+	}
+}
+
+func calculateMiddleHash(hash1 []byte, hash2 []byte) (newHash []byte) {
+	var data []byte
+	data = append(data, hash1...)
+	data = append(data, hash2...)
+
+	hash := blake3.Sum256(data)
+
+	return hash[:]
+}
+
+// Export/Import of the merkle tree structure:
+// TODO
+
+// Export stores the tree as blob
+func (tree *MerkleTree) Export() (data []byte) {
+	return nil
+}
+
+// Import reads the tree from the input data
+func (tree *MerkleTree) Import(data []byte) {
+
+}
diff --git a/fragment/Test_test.go b/fragment/Test_test.go
new file mode 100644
index 0000000..4fe3695
--- /dev/null
+++ b/fragment/Test_test.go
@@ -0,0 +1,48 @@
+package fragment
+
+import (
+	"bytes"
+	"crypto/rand"
+	"encoding/hex"
+	"fmt"
+	"io"
+	"testing"
+)
+
+func TestFragment0(t *testing.T) {
+	dataSize := uint64(11*1024*1024 + 100)
+
+	data := make([]byte, dataSize)
+
+	if _, err := io.ReadFull(rand.Reader, data); err != nil {
+		return
+	}
+
+	fragmentSize := CalculateFragmentSize(dataSize)
+
+	tree, err := NewMerkleTree(dataSize, fragmentSize, bytes.NewBuffer(data))
+
+	if err != nil {
+		fmt.Printf("Error creating merkle tree: %v\n", err)
+		return
+	}
+
+	printMerkleTree(tree)
+}
+
+func printMerkleTree(tree *MerkleTree) {
+	fmt.Printf("File size: %d\n", tree.fileSize)
+	fmt.Printf("Fragment size: %d\n", tree.fragmentSize)
+	fmt.Printf("Fragment count: %d\n", tree.fragmentCount)
+
+	fmt.Printf("Merkle root hash: %s\n", hex.EncodeToString(tree.rootHash))
+
+	for n := 0; n < len(tree.fragmentHashes); n++ {
+		fmt.Printf("Fragment %d: %s\n", n, hex.EncodeToString(tree.fragmentHashes[n]))
+	}
+	for n := 0; n < len(tree.middleHashes); n++ {
+		for m := 0; m < len(tree.middleHashes[n]); m++ {
+			fmt.Printf("Middle hash [level %d] %d: %s\n", n, m, hex.EncodeToString(tree.middleHashes[n][m]))
+		}
+	}
+}