Thomas Daniels

Published On: 26/02/2025
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Trump’s $1M Ethereum Holdings, NFT Earnings, and Bitcoin Reserve Plans
By Published On: 26/02/2025

To improve its zero-knowledge (zk) proof capabilities, Ethereum is testing the Poseidon hash function. Co-founder Vitalik Buterin is urging researchers to take part in a cryptographic analysis program.

As Ethereum evaluates the viability of implementing the Poseidon hash function, Buterin recently called on researchers to join the Poseidon cryptography analysis initiative in a post on X. The goal of the project is to improve Ethereum’s zk-proof infrastructure, namely its interoperability with zk-provers, which are programs that allow for the verification of private transactions. Ethereum has extended the grant application due until March 15 in order to assist this study.

EIP 5988 and the Poseidon Hash Function
It is not a novel concept to incorporate the Poseidon hash function into Ethereum. Ethereum Improvement Proposal (EIP) 5988, which was introduced in November 2022, calls for Poseidon to be implemented via a precompiled contract inside the Ethereum Virtual Machine (EVM). Enhancing compatibility between the EVM and zero-knowledge rollups—a key component of Ethereum’s scaling strategy—was the goal of the proposal. Although Ethereum seems to be reexamining the proposal with renewed interest, EIP 5988 has not seen much official movement despite its introduction.

Established Hash Functions vs. Poseidon
Compared to its frequently used counterparts, such as SHA-256 and Keccak, Poseidon is a relatively recent cryptographic hash function, having been introduced in 2019. Despite decades of rigorous testing, SHA-256 and Keccak were not created with zero-knowledge proofs in mind. However, Poseidon was designed specifically for zk-proofs, which makes it a desirable choice for Ethereum’s developing infrastructure. Poseidon is already in use in Ethereum’s layer-2 solutions and other blockchain ecosystems, despite not having received the same amount of attention as conventional hash functions.

Upgrades to Pectra and Ethereum’s Scaling Initiatives
Ethereum’s investigation of Poseidon is a component of a larger plan to improve network efficiency. Launched on April 8, 2025, the eagerly awaited Pectra upgrade will bring major improvements like enhanced layer-2 efficiency, enhanced validator rewards, and better account abstraction. This comes after Dencun’s recent hard fork in March 2024, which significantly lowered layer-2 network transaction fees.

The possible implementation of the Poseidon hash function might be a major step in enhancing the network’s scalability and efficiency as Ethereum continues to improve its infrastructure, especially in the area of zk-proof applications.