A method for reducing file size of a blockchain through hash truncation includes: receiving a plurality of blockchain transactions; generating a first Merkle root of a first Merkle tree comprised of a first hash of each of the plurality of blockchain transactions; generating a second Merkle root of a second Merkle tree comprised of a second hash of each of the plurality of blockchain transactions, where the second hash is a truncation of the first hash for the respective blockchain transaction; generating a new block comprised of a block header and the first hash of each of the plurality of blockchain transactions, the block header including at least a timestamp, the first Merkle root, the second Merkle root, and a block reference value associated with a prior block in a blockchain; and transmitting the generated new block to a plurality of additional nodes in the blockchain network.