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+### Title
+
+    ECIP: 1046
+    Title: Precompiled contract for verification of Merkle Inclusion Proofs
+    Authors: Kostis Karantias <kkarantias@gmail.com>, Dionysis Zindros <dionyziz@gmail.com>
+    Status: Draft
+    Type: Standard
+    Created: 2018-08-02
+    
+# ECIP 1046 - Precompiled contract for Merkle Inclusion Proofs
+
+## Abstract 
+
+Verification of Merkle Inclusion Proofs is obviously possible in EVM bytecode.
+However, the gas cost for such an operation is very high.
+
+We propose adding this functionality to Ethereum Classic as a precompiled
+contract in order to combat this cost.
+
+## Motivation
+
+Interoperability is a very important goal for Ethereum Classic. We believe that
+having a way to efficiently tell whether a transaction is included in a
+Bitcoin/Bitcoin Cash block by utilizing only the block's Merkle Tree Root and a
+short proof is a great first step in that direction.
+
+Moreover, new efficient constructions which enable cross-chain asset transfers
+like [NIPoPoWs](https://nipopows.com/) heavily rely on Merkle Inclusion Proofs.
+
+## Specification
+
+If `block.number >= MERKLE_FORK_BLKNUM`, add a precompiled contract for Merkle
+Inclusion Proofs (`MERKLEVERIFY`).
+
+The proposal adds a new precompiled function `MERKLEVERIFY` with the following input and output.
+
+`MERKLEVERIFY` takes as **input at least 72 bytes**:
+
+1. **root hash**: the 256-bit merkle tree root hash
+2. **leaf**: the 256-bit leaf we want to prove is included in the merkle tree
+3. **leaf index**: the 64-bit index of the leaf
+4. **siblings**: an array of 256-bit values, arranged from the leaves to the root
+
+`MERKLEVERIFY` returns as **output 4 bytes**:
+
+* `0x00000000` if the proof is valid
+* any non-zero value indicates an invalid proof
+
+### Address
+
+The address of `MERKLEVERIFY` is **`0x9`.**
+
+### Gas costs
+
+Gas cost for `MERKLEVERIFY` is **????**.
+
+## Implementation
+
+The hash function used is `SHA256(SHA256(_))`, to be compatible with Bitcoin/Bitcoin Cash.
+
+The merkle tree construction assumed is described in detail in the [Bitcoin
+Developer Reference](https://bitcoin.org/en/developer-reference#merkle-trees).
+
+Here follows an example implementation of the verification in Solidity:
+
+```solidity
+function merkleVerify(bytes32 root, bytes32 leaf, bytes8 leafIndex, bytes32[] siblings)
+  pure
+  public
+  returns (bool verificationSucceeded)
+{
+  bytes32 h = leaf;
+  for (uint i = 0; i < siblings.length; ++i) {
+    bool siblingOnTheLeft = leafIndex & 0x1 == 1;
+    if (siblingOnTheLeft)
+      h = sha256(abi.encodePacked(sha256(abi.encodePacked(siblings[i], h))));
+    else
+      h = sha256(abi.encodePacked(sha256(abi.encodePacked(h, siblings[i]))));
+    leafIndex >>= 1;
+  }
+  return h == root;
+}
+```
+
+## References
+
+ - [NIPoPoWs](https://nipopows.com/)
+ - [Original Solidity implementation](https://github.com/dionyziz/popow/blob/c82349f870eece524fc027ec787a8b3f3295d566/experiment/contractNipopow.sol#L242-L255)
+ - [Bitcoin Developer Reference](https://bitcoin.org/en/developer-reference#merkle-trees)