My question isn't about making Collision but can collision (process whereby hashing of two or more different keys gives the same hashing value or result) be totally eradicated with this method of Merkle tree
It is impossible to entirely eradicate the potential for a collusion when using a hashing algorithm. Otherwise, you would just be dealing with raw data.
Given the limited number of blocks, and the algorithm currently being used, the chances of a collusion is effectively zero under the status quo.
1. Would Merkle tree solves the problem of Collision sometimes encountered with SHA256?
What do you mean? There's never been a collision with SHA-256.
There are 2
256 possible outcomes when hashing a piece of data using SHA-256. There is an infinite number of data that can potentially be hashed, therefore, there is an infinite number of data points that will produce collisions when hashing each of the data points using SHA-256.
With that being said, actually finding any of those collisions is a different story, and it is unlikely that someone will ever encounter a SHA-256 collusion without breaking SHA-256.