Ethereum: Why is P2PKH used instead of the simpler P2PK?

Ethereum: Why is P2PKH used instead of the simpler P2PK?

Ethereum’s public key scheme, known as Public Key Hierarchical Hashing (P2PKH), has been a subject of debate among developers and researchers. In this article, we will explore why P2PKH was chosen over its simpler counterpart, P2PK.

The Security of Elliptic Curve Cryptography

Elliptic curve cryptography is considered secure enough that you can provide a public key without fear that someone can calculate the corresponding private key from it. This is because ECC uses a mathematical concept called discrete logarithms, which are theoretically unbreakable. However, this security comes at a cost.

Limitations of P2PK

P2PK (Public Key Hierarchical Hashing) is a simpler public key scheme that only uses the difficulty of the hash function to secure transactions. The problem with P2PK is that it requires more computational resources and energy to mine new blocks, which can be expensive and lead to centralization of the network.

Why P2PKH was chosen

In 2017, Vitalik Buterin, co-founder of Ethereum, proposed P2PKH as an alternative to P2PK. He argued that P2PK is too energy-intensive to support a large-scale blockchain like Ethereum. By using a separate hash function for the public key, Ethereum can reduce computational requirements and make it more energy-efficient.

Additional Benefits of P2PKH

In addition to security, P2PKH also offers some additional benefits:

• Increased Energy Efficiency: As mentioned above, P2PK requires more computational resources and energy to mine new blocks. By using a separate hash function for the public key, Ethereum can reduce its energy consumption.

• Better Network Resilience: P2PKH offers better network resilience by allowing transactions to be processed in batches rather than one at a time.

• Better Scalability Support: P2PKH is designed to support scalability and high transaction volumes.

Conclusion

In conclusion, the choice of P2PKH over P2PK was motivated by the need to balance security and energy efficiency. While P2PK is still used in certain scenarios, P2PKH provides a more scalable, resilient, and secure alternative to Ethereum’s public key scheme. As the network continues to grow and evolve, it will be interesting to see how these two schemes integrate and whether one will eventually replace the other.

Additional Resources

• [Ethereum Whitepaper](

• [Vitalik Buterin’s Blog](

• [Wikipedia article on Elliptic Curve Cryptography (ECC)](

Note: This article is based on information available as of 2021 and may not reflect the latest developments in the Ethereum ecosystem.

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