Dedaub’s Verkle tree proposal draws criticism from DeFi protocol Curve Finance

02/26/2023 04:45 • Metaverse Matters • 98 views

It is reported that the security company Dedaub sent a message on social media suggesting that Ethereum should use the more advantageous Verkle tree to reduce the gas cost. Unlike Merkle-Patricia, Verkle tree can enable encrypted secure light clients and can support “state witness” to minimize data transmission. If the state access cost is fully measured and corresponds to the size of “state witness”, the stateless client network will not be attacked by DoS. In this regard, Curve Finance, the DeFi protocol, believes that the proposal is “absolutely harmful” and will “kill DeFi on the main network”, and expresses the hope of further communication to explore other solutions.

The security company Dedaub proposed to use Verkle tree to reduce gas costs, which was opposed by Curve Finance

Analysis based on this information:

Dedaub, a security company, recently suggested that Ethereum should adopt the Verkle tree instead of the current Merkle-Patricia tree structure, to reduce gas costs. Verkle tree is said to provide advantages such as support for encrypted secure light clients and a “state witness” feature that reduces data transmission, ultimately minimizing the risk of stateless client networks being attacked by Denial of Service (DoS) attacks.

Curve Finance, a popular decentralized finance (DeFi) protocol, has, however, criticized the proposal, calling it “absolutely harmful” and potentially lethal to DeFi on the main Ethereum network.

The Merkle-Patricia tree structure is currently used by Ethereum to store transaction data, and it requires a significant amount of computational power, time and network resources to verify transactions. Verkle tree, on the other hand, separates the state data from the transaction data, thus allowing nodes to store only transaction data in a compact form. This would result in a reduction of gas costs, a crucial factor for DeFi protocols to remain profitable and sustainable in the long term.

Additionally, Verkle trees are said to enable the creation of secure light clients, which are lightweight versions of full Ethereum nodes, that can verify transactions without maintaining a full copy of the blockchain. This feature could further lower the costs of running and maintaining a decentralized application (dApp) and increase adoption.

However, Curve Finance believes that the adoption of Verkle tree is not the solution, as it poses a threat to DeFi on the main Ethereum network. Although Verkle tree is more cost-effective, it is not backward compatible with the existing Merkle-Patricia tree structure. Therefore, the adoption of Verkle tree would require a hard fork, which could result in a fragmentation of the Ethereum network, leading to the creation of two separate chains with different transaction histories. This situation could have adverse effects on the network’s security, reliability and user adoption.

In conclusion, Dedaub’s proposal to adopt Verkle tree instead of Merkle-Patricia tree has sparked controversy in the Ethereum community, with Curve Finance strongly opposing it. While Verkle tree offers many advantages, its adoption would require a hard fork and could lead to the fragmentation of the network, causing concern for the DeFi protocol on the main network. Therefore, the Ethereum community needs to find a solution that balances cost-effectiveness with compatibility and scalability, without negatively impacting the network’s security and reliability.

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