Key Insights:
Ethereum is about to implement Verkle Trees in the upcoming Pectra Upgrade.
Verkle Trees are not quantum resistant, unlike other algorithms such as older SHA256 (used in the proof of stake) and newer ones like STARK.
Ethereum chose Verkle Trees because it can support decentralization, a core aspect of two major upgrades, Sharding and Pectra.
This has been done despite the arrival of quantum computers.
Vitalik Buterin and Ethereum's governance members have deliberately missed the bus to make Ethereum a more quantum-resistant blockchain.
The upcoming Verge series of upgrades, starting with the Pectra Upgrade, will implement new cryptographic algorithms, including Verkle Trees, to verify blockchain state. These trees will replace the currently used Merkle Patricia Trees.
The choice has been made because of the ability Verkle Trees provide. This cryptographic algorithm offers a lighter yet secure way to verify the state of the blockchain, which is critical to securing Layer-2s and creating new blocks.
Ethereum co-founder Vitalik Buterin has advocated for Verkle Trees because they are light and highly secure, and other algorithms that provide similar benefits with quantum proofing have not been tested.
Ethereum cannot change its cryptographic algorithm to SHA-256 because doing so would require rolling back the Merge Upgrade and returning to being a Proof of Work blockchain.
And it cannot risk its security with the newer but untested STARK (Poseidon) algorithm which is both fast and supposedly secure.
Ethereum chose Verkle Trees over other algorithms to secure the blockchain mainly because it provided a faster, lighter, and, therefore, efficient way to verify its state.
The state of the blockchain refers to the latest record of all the data on the blockchain. It contains all the token balances in various addresses, information on bridged tokens, NFTs, ENS domains, and other data. Ethereum uses this state from time to time to ensure that its blockchain has not been manipulated.
Currently, only validator nodes are required to access this state because they are the ones adding new data to this chain. Currently, Ethereum adds around 30 GB of data to its blockchain every year. Going by this rate it would make the blockchain very bulky. Further, only a limited number of people will be able to operate a node on its blockchain which is the opposite of decentralization.
Ethereum seeks to solve these problems through two upgrades: Sharding and Pectra. Sharding will ensure that Ethereum's network is fast and reliable, while Pectra will ensure that the nodes are more decentralized and, hence, must become lighter.
The blockchain will also reduce the required ETH to become a validator from 32 to 1.
Overall, the final goal is to make Ethereum nodes so light that they can run on a laptop or even a high-end mobile phone.
Among all these, Ethereum has been neglecting a core threat posed by Quantum Computing, which can easily guess and decode Bitcoin's mining algorithm in seconds and could add more data per second than any other Ethereum node.
Quantum chips are more advanced than classical chips in specific ways because they harness the unique principles of quantum mechanics, primarily superposition and entanglement.
Nodes using quantum computers can break cryptographic algorithms much faster than other nodes, posing a security threat and manipulation risk to the blockchain.
Scientists at Tsing Hua University in Taiwan have already built a quantum computer that is thousands of times more capable of processing data than our most sophisticated chip, the NVIDIA Blackwell.
This leaves us with the question of whether Ethereum made the right choice now and whether it can correct its course on time to make itself quantum-resistant.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.