Ethereum Developers Submitted An Improvement Proposal EIP-5988

Key Points:

• Ethereum developers have submitted an improvement proposal, EIP-5988.
• The proposal introduces a new pre-compiled solution, which aims to improve the efficiency of running zero-knowledge proofs on the network and reduce the cost of reserve proofs, such as Merkle-based proofs on the chain.

The eips.ethereum page shows that Ethereum developers have submitted an improvement proposal, EIP-5988. It is understood that the proposal introduces a new pre-compiled solution, which aims to improve the efficiency of running zero-knowledge proofs on the network and reduce the cost of reserve proofs, such as Merkle-based proofs on the chain.

The Poseidon arithmetic hash function was created with Zero-Knowledge Proof Systems in mind. In order to interface with the EVM in the best possible way, Ethereum must incorporate facilities for L2s because its roadmap is rollup-centric.

Particularly efficient cryptographic hash functions that provide evidence verification are required for ZK-Rollups.

For the aim of creating effective ZK/Validity rollups on Ethereum, the Poseidon hash function is especially well-suited because it is a collection of permutations over a prime field.

One of the most effective hashing algorithms that may be applied in this situation is Poseidon. Additionally, it works with all popular proof techniques (SNARKs, STARKs, Bulletproofs, etc.). As a result, it would make a decent precompile that could be applied to numerous ZK-Rollups.

It’s crucial to keep in mind that ZK-Rollups employing Poseidon have selected various sets of settings, making it more challenging to create a single precompile for all of them.

Proof-of-Reserve is often used to verify that a user’s crypto assets are fully retained with an exchange or crypto firm. However, Dankrad Feist, a researcher at the Ethereum Foundation, believes that although there are not many zero-knowledge proof-friendly hash functions on the blockchain, the introduction of EIP-5988 may have unknown consequences on the security of the chain, because any type of inclusion of any hash function in the Ethereum protocol requires caution.

It is unclear whether EIP-5988 will be deployed in the next “Shanghai” upgrade. In addition, Tim Beiko, the core developer of Ethereum, said that abdel.stark, the head of the StarkWare browser, core developer of Ethereum, demonstrated the proposal.

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