diff --git a/cmd/geth/main.go b/cmd/geth/main.go
index bc6a2639578e..ae18062f11f3 100644
--- a/cmd/geth/main.go
+++ b/cmd/geth/main.go
@@ -147,7 +147,6 @@ var (
 		utils.EWASMInterpreterFlag,
 		utils.EVMInterpreterFlag,
 		utils.StateDiffFlag,
-		utils.StateDiffPathsAndProofs,
 		utils.StateDiffIntermediateNodes,
 		utils.StateDiffStreamBlock,
 		utils.StateDiffWatchedAddresses,
diff --git a/cmd/geth/usage.go b/cmd/geth/usage.go
index 7c863f4eb03a..f90b8759cbeb 100644
--- a/cmd/geth/usage.go
+++ b/cmd/geth/usage.go
@@ -255,7 +255,6 @@ var AppHelpFlagGroups = []flagGroup{
 		Name: "STATE DIFF",
 		Flags: []cli.Flag{
 			utils.StateDiffFlag,
-			utils.StateDiffPathsAndProofs,
 			utils.StateDiffIntermediateNodes,
 			utils.StateDiffStreamBlock,
 			utils.StateDiffWatchedAddresses,
diff --git a/cmd/utils/flags.go b/cmd/utils/flags.go
index 35107feb29f6..6701041ed5ee 100644
--- a/cmd/utils/flags.go
+++ b/cmd/utils/flags.go
@@ -761,10 +761,6 @@ var (
 		Name:  "statediff",
 		Usage: "Enables the processing of state diffs between each block",
 	}
-	StateDiffPathsAndProofs = cli.BoolFlag{
-		Name:  "statediff.pathsandproofs",
-		Usage: "Set to true to generate paths and proof sets for diffed state and storage trie leaf nodes",
-	}
 	StateDiffIntermediateNodes = cli.BoolFlag{
 		Name:  "statediff.intermediatenodes",
 		Usage: "Set to include intermediate (branch and extension) nodes; default (false) processes leaf nodes only",
@@ -1651,7 +1647,6 @@ func RegisterGraphQLService(stack *node.Node, endpoint string, cors, vhosts []st
 // RegisterStateDiffService configures and registers a service to stream state diff data over RPC
 func RegisterStateDiffService(stack *node.Node, ctx *cli.Context) {
 	config := statediff.Config{
-		PathsAndProofs:    ctx.GlobalBool(StateDiffPathsAndProofs.Name),
 		IntermediateNodes: ctx.GlobalBool(StateDiffIntermediateNodes.Name),
 		StreamBlock:       ctx.GlobalBool(StateDiffStreamBlock.Name),
 		WatchedAddresses:  ctx.GlobalStringSlice(StateDiffWatchedAddresses.Name),
@@ -1659,9 +1654,8 @@ func RegisterStateDiffService(stack *node.Node, ctx *cli.Context) {
 	if err := stack.Register(func(ctx *node.ServiceContext) (node.Service, error) {
 		var ethServ *eth.Ethereum
 		ctx.Service(&ethServ)
-		chainDb := ethServ.ChainDb()
 		blockChain := ethServ.BlockChain()
-		return statediff.NewStateDiffService(chainDb, blockChain, config)
+		return statediff.NewStateDiffService(blockChain, config)
 	}); err != nil {
 		Fatalf("Failed to register State Diff Service", err)
 	}
diff --git a/statediff/builder.go b/statediff/builder.go
index bbd523a5f6f5..beb865093de4 100644
--- a/statediff/builder.go
+++ b/statediff/builder.go
@@ -28,7 +28,6 @@ import (
 	"github.com/ethereum/go-ethereum/core"
 	"github.com/ethereum/go-ethereum/core/state"
 	"github.com/ethereum/go-ethereum/crypto"
-	"github.com/ethereum/go-ethereum/ethdb"
 	"github.com/ethereum/go-ethereum/log"
 	"github.com/ethereum/go-ethereum/rlp"
 	"github.com/ethereum/go-ethereum/trie"
@@ -42,16 +41,14 @@ type Builder interface {
 }
 
 type builder struct {
-	chainDB    ethdb.Database
 	config     Config
 	blockChain *core.BlockChain
 	stateCache state.Database
 }
 
 // NewBuilder is used to create a statediff builder
-func NewBuilder(db ethdb.Database, blockChain *core.BlockChain, config Config) Builder {
+func NewBuilder(blockChain *core.BlockChain, config Config) Builder {
 	return &builder{
-		chainDB:    db,
 		config:     config,
 		blockChain: blockChain,
 	}
@@ -71,17 +68,13 @@ func (sdb *builder) BuildStateDiff(oldStateRoot, newStateRoot common.Hash, block
 	}
 
 	// Find created accounts
-	oldIt := oldTrie.NodeIterator([]byte{})
-	newIt := newTrie.NodeIterator([]byte{})
-	creations, err := sdb.collectDiffNodes(oldIt, newIt)
+	creations, err := sdb.collectDiffNodes(oldTrie.NodeIterator([]byte{}), newTrie.NodeIterator([]byte{}))
 	if err != nil {
 		return StateDiff{}, fmt.Errorf("error collecting creation diff nodes: %v", err)
 	}
 
 	// Find deleted accounts
-	oldIt = oldTrie.NodeIterator([]byte{})
-	newIt = newTrie.NodeIterator([]byte{})
-	deletions, err := sdb.collectDiffNodes(newIt, oldIt)
+	deletions, err := sdb.collectDiffNodes(newTrie.NodeIterator([]byte{}), oldTrie.NodeIterator([]byte{}))
 	if err != nil {
 		return StateDiff{}, fmt.Errorf("error collecting deletion diff nodes: %v", err)
 	}
@@ -131,58 +124,62 @@ func (sdb *builder) isWatchedAddress(hashKey []byte) bool {
 }
 
 func (sdb *builder) collectDiffNodes(a, b trie.NodeIterator) (AccountsMap, error) {
-	var diffAccounts = make(AccountsMap)
+	diffAccounts := make(AccountsMap)
 	it, _ := trie.NewDifferenceIterator(a, b)
-	for {
-		log.Debug("Current Path and Hash", "path", pathToStr(it), "old hash", it.Hash())
-		if it.Leaf() && sdb.isWatchedAddress(it.LeafKey()) {
-			leafKey := make([]byte, len(it.LeafKey()))
-			copy(leafKey, it.LeafKey())
-			leafKeyHash := common.BytesToHash(leafKey)
-			leafValue := make([]byte, len(it.LeafBlob()))
-			copy(leafValue, it.LeafBlob())
-			// lookup account state
+	for it.Next(true) {
+		// skip value nodes
+		if it.Leaf() {
+			continue
+		}
+		if bytes.Equal(nullNode, it.Hash().Bytes()) {
+			continue
+		}
+		nodePath := make([]byte, len(it.Path()))
+		copy(nodePath, it.Path())
+		node, err := sdb.stateCache.TrieDB().Node(it.Hash())
+		if err != nil {
+			return nil, err
+		}
+		var nodeElements []interface{}
+		if err := rlp.DecodeBytes(node, &nodeElements); err != nil {
+			return nil, err
+		}
+		ty, err := CheckKeyType(nodeElements)
+		if err != nil {
+			return nil, err
+		}
+		switch ty {
+		case Leaf:
 			var account state.Account
-			if err := rlp.DecodeBytes(leafValue, &account); err != nil {
-				return nil, fmt.Errorf("error looking up account via address %s\r\nerror: %v", leafKeyHash.Hex(), err)
-			}
-			aw := accountWrapper{
-				Leaf:     true,
-				Account:  &account,
-				RawKey:   leafKey,
-				RawValue: leafValue,
+			if err := rlp.DecodeBytes(nodeElements[1].([]byte), &account); err != nil {
+				return nil, fmt.Errorf("error decoding account for leaf node at path %x\r\nerror: %v\r\n", nodePath, err)
 			}
-			if sdb.config.PathsAndProofs {
-				leafProof := make([][]byte, len(it.LeafProof()))
-				copy(leafProof, it.LeafProof())
-				leafPath := make([]byte, len(it.Path()))
-				copy(leafPath, it.Path())
-				aw.Proof = leafProof
-				aw.Path = leafPath
+			partialPath := trie.CompactToHex(nodeElements[0].([]byte))
+			valueNodePath := append(nodePath, partialPath...)
+			encodedPath := trie.HexToCompact(valueNodePath)
+			leafKey := encodedPath[1:]
+			if sdb.isWatchedAddress(leafKey) {
+				aw := accountWrapper{
+					NodeType:  ty,
+					Path:      nodePath,
+					NodeValue: node,
+					LeafKey:   leafKey,
+					Account:   &account,
+				}
+				diffAccounts[common.BytesToHash(encodedPath)] = aw
 			}
-			// record account to diffs (creation if we are looking at new - old; deletion if old - new)
-			log.Debug("Account lookup successful", "address", leafKeyHash, "account", account)
-			diffAccounts[leafKeyHash] = aw
-		} else if sdb.config.IntermediateNodes && !bytes.Equal(nullNode, it.Hash().Bytes()) {
-			nodeKey := it.Hash()
-			node, err := sdb.stateCache.TrieDB().Node(nodeKey)
-			if err != nil {
-				return nil, fmt.Errorf("error looking up intermediate state trie node %s\r\nerror: %v", nodeKey.Hex(), err)
+		case Extension, Branch:
+			if sdb.config.IntermediateNodes {
+				diffAccounts[common.BytesToHash(nodePath)] = accountWrapper{
+					NodeType:  ty,
+					Path:      nodePath,
+					NodeValue: node,
+				}
 			}
-			aw := accountWrapper{
-				Leaf:     false,
-				RawKey:   nodeKey.Bytes(),
-				RawValue: node,
-			}
-			log.Debug("intermediate state trie node lookup successful", "key", nodeKey.Hex(), "value", node)
-			diffAccounts[nodeKey] = aw
-		}
-		cont := it.Next(true)
-		if !cont {
-			break
+		default:
+			return nil, fmt.Errorf("unexpected node type %s", ty)
 		}
 	}
-
 	return diffAccounts, nil
 }
 
@@ -195,16 +192,15 @@ func (sdb *builder) buildDiffEventual(accounts AccountsMap) ([]AccountDiff, erro
 		if val.Account != nil {
 			storageDiffs, err = sdb.buildStorageDiffsEventual(val.Account.Root)
 			if err != nil {
-				return nil, fmt.Errorf("failed building eventual storage diffs for %s\r\nerror: %v", common.BytesToHash(val.RawKey), err)
+				return nil, fmt.Errorf("failed building eventual storage diffs for node %x\r\nerror: %v", val.Path, err)
 			}
 		}
 		accountDiffs = append(accountDiffs, AccountDiff{
-			Leaf:    val.Leaf,
-			Key:     val.RawKey,
-			Value:   val.RawValue,
-			Proof:   val.Proof,
-			Path:    val.Path,
-			Storage: storageDiffs,
+			NodeType:  val.NodeType,
+			Path:      val.Path,
+			LeafKey:   val.LeafKey,
+			NodeValue: val.NodeValue,
+			Storage:   storageDiffs,
 		})
 	}
 
@@ -228,12 +224,11 @@ func (sdb *builder) buildDiffIncremental(creations AccountsMap, deletions Accoun
 			}
 		}
 		updatedAccounts = append(updatedAccounts, AccountDiff{
-			Leaf:    createdAcc.Leaf,
-			Key:     createdAcc.RawKey,
-			Value:   createdAcc.RawValue,
-			Proof:   createdAcc.Proof,
-			Path:    createdAcc.Path,
-			Storage: storageDiffs,
+			NodeType:  createdAcc.NodeType,
+			Path:      createdAcc.Path,
+			NodeValue: createdAcc.NodeValue,
+			LeafKey:   createdAcc.LeafKey,
+			Storage:   storageDiffs,
 		})
 		delete(creations, common.HexToHash(val))
 		delete(deletions, common.HexToHash(val))
@@ -275,46 +270,52 @@ func (sdb *builder) buildStorageDiffsIncremental(oldSR common.Hash, newSR common
 
 func (sdb *builder) buildStorageDiffsFromTrie(it trie.NodeIterator) ([]StorageDiff, error) {
 	storageDiffs := make([]StorageDiff, 0)
-	for {
-		log.Debug("Iterating over state at path ", "path", pathToStr(it))
+	for it.Next(true) {
+		// skip value nodes
 		if it.Leaf() {
-			log.Debug("Found leaf in storage", "path", pathToStr(it))
-			leafKey := make([]byte, len(it.LeafKey()))
-			copy(leafKey, it.LeafKey())
-			leafValue := make([]byte, len(it.LeafBlob()))
-			copy(leafValue, it.LeafBlob())
+			continue
+		}
+		if bytes.Equal(nullNode, it.Hash().Bytes()) {
+			continue
+		}
+		nodePath := make([]byte, len(it.Path()))
+		copy(nodePath, it.Path())
+		node, err := sdb.stateCache.TrieDB().Node(it.Hash())
+		if err != nil {
+			return nil, err
+		}
+		var nodeElements []interface{}
+		if err := rlp.DecodeBytes(node, &nodeElements); err != nil {
+			return nil, err
+		}
+		ty, err := CheckKeyType(nodeElements)
+		if err != nil {
+			return nil, err
+		}
+		switch ty {
+		case Leaf:
+			partialPath := trie.CompactToHex(nodeElements[0].([]byte))
+			valueNodePath := append(nodePath, partialPath...)
+			encodedPath := trie.HexToCompact(valueNodePath)
+			leafKey := encodedPath[1:]
 			sd := StorageDiff{
-				Leaf:  true,
-				Key:   leafKey,
-				Value: leafValue,
-			}
-			if sdb.config.PathsAndProofs {
-				leafProof := make([][]byte, len(it.LeafProof()))
-				copy(leafProof, it.LeafProof())
-				leafPath := make([]byte, len(it.Path()))
-				copy(leafPath, it.Path())
-				sd.Proof = leafProof
-				sd.Path = leafPath
+				NodeType:  ty,
+				Path:      nodePath,
+				NodeValue: node,
+				LeafKey:   leafKey,
 			}
 			storageDiffs = append(storageDiffs, sd)
-		} else if sdb.config.IntermediateNodes && !bytes.Equal(nullNode, it.Hash().Bytes()) {
-			nodeKey := it.Hash()
-			node, err := sdb.stateCache.TrieDB().Node(nodeKey)
-			if err != nil {
-				return nil, fmt.Errorf("error looking up intermediate storage trie node %s\r\nerror: %v", nodeKey.Hex(), err)
+		case Extension, Branch:
+			if sdb.config.IntermediateNodes {
+				storageDiffs = append(storageDiffs, StorageDiff{
+					NodeType:  ty,
+					Path:      nodePath,
+					NodeValue: node,
+				})
 			}
-			storageDiffs = append(storageDiffs, StorageDiff{
-				Leaf:  false,
-				Key:   nodeKey.Bytes(),
-				Value: node,
-			})
-			log.Debug("intermediate storage trie node lookup successful", "key", nodeKey.Hex(), "value", node)
-		}
-		cont := it.Next(true)
-		if !cont {
-			break
+		default:
+			return nil, fmt.Errorf("unexpected node type %s", ty)
 		}
 	}
-
 	return storageDiffs, nil
 }
diff --git a/statediff/builder_test.go b/statediff/builder_test.go
index 1cd5cdf38d88..24ab3e0a1f49 100644
--- a/statediff/builder_test.go
+++ b/statediff/builder_test.go
@@ -31,101 +31,153 @@ import (
 	"github.com/ethereum/go-ethereum/statediff/testhelpers"
 )
 
+// TODO: add test that filters on address
 var (
-	contractLeafKey                common.Hash
+	contractLeafKey                []byte
 	emptyAccountDiffEventualMap    = make([]statediff.AccountDiff, 0)
 	emptyAccountDiffIncrementalMap = make([]statediff.AccountDiff, 0)
 	block0, block1, block2, block3 *types.Block
 	builder                        statediff.Builder
 	miningReward                   = int64(2000000000000000000)
-	burnAddress                    = common.HexToAddress("0x0")
-	burnLeafKey                    = testhelpers.AddressToLeafKey(burnAddress)
+	minerAddress                   = common.HexToAddress("0x0")
+	minerLeafKey                   = testhelpers.AddressToEncodedPath(minerAddress)
 
-	balanceChange10000      = int64(10000)
-	balanceChange1000       = int64(1000)
-	block1BankBalance       = int64(99990000)
-	block1Account1Balance   = int64(10000)
-	block2Account2Balance   = int64(1000)
-	nonce0                  = uint64(0)
-	nonce1                  = uint64(1)
-	nonce2                  = uint64(2)
-	nonce3                  = uint64(3)
-	originalContractRoot    = "0x56e81f171bcc55a6ff8345e692c0f86e5b48e01b996cadc001622fb5e363b421"
-	contractContractRoot    = "0x821e2556a290c86405f8160a2d662042a431ba456b9db265c79bb837c04be5f0"
-	newContractRoot         = "0x71e0d14b2b93e5c7f9748e69e1fe5f17498a1c3ac3cec29f96af13d7f8a4e070"
-	originalStorageLocation = common.HexToHash("0")
-	originalStorageKey      = crypto.Keccak256Hash(originalStorageLocation[:]).Bytes()
-	updatedStorageLocation  = common.HexToHash("2")
-	updatedStorageKey       = crypto.Keccak256Hash(updatedStorageLocation[:]).Bytes()
-	originalStorageValue    = common.Hex2Bytes("01")
-	updatedStorageValue     = common.Hex2Bytes("03")
-
-	account1, _ = rlp.EncodeToBytes(state.Account{
+	balanceChange10000         = int64(10000)
+	balanceChange1000          = int64(1000)
+	block1BankBalance          = int64(99990000)
+	block1Account1Balance      = int64(10000)
+	block2Account2Balance      = int64(1000)
+	nonce0                     = uint64(0)
+	nonce1                     = uint64(1)
+	nonce2                     = uint64(2)
+	nonce3                     = uint64(3)
+	originalContractRoot       = "0x56e81f171bcc55a6ff8345e692c0f86e5b48e01b996cadc001622fb5e363b421"
+	contractContractRoot       = "0x821e2556a290c86405f8160a2d662042a431ba456b9db265c79bb837c04be5f0"
+	newContractRoot            = "0x71e0d14b2b93e5c7f9748e69e1fe5f17498a1c3ac3cec29f96af13d7f8a4e070"
+	originalStorageLocation    = common.HexToHash("0")
+	originalStorageKey         = append(testhelpers.EvenLeafFlag, crypto.Keccak256Hash(originalStorageLocation[:]).Bytes()...)
+	updatedStorageLocation     = common.HexToHash("2")
+	updatedStorageKey          = append(testhelpers.EvenLeafFlag, crypto.Keccak256Hash(updatedStorageLocation[:]).Bytes()...)
+	originalStorageValue       = common.Hex2Bytes("01")
+	originalStorageLeafNode, _ = rlp.EncodeToBytes([]interface{}{
+		common.Hex2Bytes("20290decd9548b62a8d60345a988386fc84ba6bc95484008f6362f93160ef3e563"),
+		originalStorageValue,
+	})
+	updatedStorageValue       = common.Hex2Bytes("03")
+	updatedStorageLeafNode, _ = rlp.EncodeToBytes([]interface{}{
+		common.Hex2Bytes("305787fa12a823e0f2b7631cc41b3ba8828b3321ca811111fa75cd3aa3bb5ace"),
+		updatedStorageValue,
+	})
+	account1AtBlock1, _ = rlp.EncodeToBytes(state.Account{
 		Nonce:    nonce0,
 		Balance:  big.NewInt(balanceChange10000),
 		CodeHash: common.HexToHash("0xc5d2460186f7233c927e7db2dcc703c0e500b653ca82273b7bfad8045d85a470").Bytes(),
 		Root:     common.HexToHash(originalContractRoot),
 	})
-	burnAccount1, _ = rlp.EncodeToBytes(state.Account{
+	account1AtBlock1LeafNode, _ = rlp.EncodeToBytes([]interface{}{
+		common.Hex2Bytes("3926db69aaced518e9b9f0f434a473e7174109c943548bb8f23be41ca76d9ad2"),
+		account1AtBlock1,
+	})
+	minerAccountAtBlock1, _ = rlp.EncodeToBytes(state.Account{
 		Nonce:    nonce0,
 		Balance:  big.NewInt(miningReward),
 		CodeHash: common.HexToHash("0xc5d2460186f7233c927e7db2dcc703c0e500b653ca82273b7bfad8045d85a470").Bytes(),
 		Root:     common.HexToHash(originalContractRoot),
 	})
-	bankAccount1, _ = rlp.EncodeToBytes(state.Account{
+	minerAccountAtBlock1LeafNode, _ = rlp.EncodeToBytes([]interface{}{
+		common.Hex2Bytes("3380c7b7ae81a58eb98d9c78de4a1fd7fd9535fc953ed2be602daaa41767312a"),
+		minerAccountAtBlock1,
+	})
+	bankAccountAtBlock1, _ = rlp.EncodeToBytes(state.Account{
 		Nonce:    nonce1,
 		Balance:  big.NewInt(testhelpers.TestBankFunds.Int64() - balanceChange10000),
 		CodeHash: common.HexToHash("0xc5d2460186f7233c927e7db2dcc703c0e500b653ca82273b7bfad8045d85a470").Bytes(),
 		Root:     common.HexToHash(originalContractRoot),
 	})
-	account2, _ = rlp.EncodeToBytes(state.Account{
+	bankAccountAtBlock1LeafNode, _ = rlp.EncodeToBytes([]interface{}{
+		common.Hex2Bytes("30bf49f440a1cd0527e4d06e2765654c0f56452257516d793a9b8d604dcfdf2a"),
+		bankAccountAtBlock1,
+	})
+	account2AtBlock2, _ = rlp.EncodeToBytes(state.Account{
 		Nonce:    nonce0,
 		Balance:  big.NewInt(balanceChange1000),
 		CodeHash: common.HexToHash("0xc5d2460186f7233c927e7db2dcc703c0e500b653ca82273b7bfad8045d85a470").Bytes(),
 		Root:     common.HexToHash(originalContractRoot),
 	})
-	contractAccount, _ = rlp.EncodeToBytes(state.Account{
+	account2AtBlock2LeafNode, _ = rlp.EncodeToBytes([]interface{}{
+		common.Hex2Bytes("3957f3e2f04a0764c3a0491b175f69926da61efbcc8f61fa1455fd2d2b4cdd45"),
+		account2AtBlock2,
+	})
+	contractAccountAtBlock2, _ = rlp.EncodeToBytes(state.Account{
 		Nonce:    nonce1,
 		Balance:  big.NewInt(0),
 		CodeHash: common.HexToHash("0x753f98a8d4328b15636e46f66f2cb4bc860100aa17967cc145fcd17d1d4710ea").Bytes(),
 		Root:     common.HexToHash(contractContractRoot),
 	})
-	bankAccount2, _ = rlp.EncodeToBytes(state.Account{
+	contractAccountAtBlock2LeafNode, _ = rlp.EncodeToBytes([]interface{}{
+		common.Hex2Bytes("3114658a74d9cc9f7acf2c5cd696c3494d7c344d78bfec3add0d91ec4e8d1c45"),
+		contractAccountAtBlock2,
+	})
+	bankAccountAtBlock2, _ = rlp.EncodeToBytes(state.Account{
 		Nonce:    nonce2,
 		Balance:  big.NewInt(block1BankBalance - balanceChange1000),
 		CodeHash: common.HexToHash("0xc5d2460186f7233c927e7db2dcc703c0e500b653ca82273b7bfad8045d85a470").Bytes(),
 		Root:     common.HexToHash(originalContractRoot),
 	})
-	account3, _ = rlp.EncodeToBytes(state.Account{
+	bankAccountAtBlock2LeafNode, _ = rlp.EncodeToBytes([]interface{}{
+		common.Hex2Bytes("30bf49f440a1cd0527e4d06e2765654c0f56452257516d793a9b8d604dcfdf2a"),
+		bankAccountAtBlock2,
+	})
+	account1AtBlock2, _ = rlp.EncodeToBytes(state.Account{
 		Nonce:    nonce2,
 		Balance:  big.NewInt(block1Account1Balance - balanceChange1000 + balanceChange1000),
 		CodeHash: common.HexToHash("0xc5d2460186f7233c927e7db2dcc703c0e500b653ca82273b7bfad8045d85a470").Bytes(),
 		Root:     common.HexToHash(originalContractRoot),
 	})
-	burnAccount2, _ = rlp.EncodeToBytes(state.Account{
+	account1AtBlock2LeafNode, _ = rlp.EncodeToBytes([]interface{}{
+		common.Hex2Bytes("3926db69aaced518e9b9f0f434a473e7174109c943548bb8f23be41ca76d9ad2"),
+		account1AtBlock2,
+	})
+	minerAccountAtBlock2, _ = rlp.EncodeToBytes(state.Account{
 		Nonce:    nonce0,
 		Balance:  big.NewInt(miningReward + miningReward),
 		CodeHash: common.HexToHash("0xc5d2460186f7233c927e7db2dcc703c0e500b653ca82273b7bfad8045d85a470").Bytes(),
 		Root:     common.HexToHash(originalContractRoot),
 	})
-	account4, _ = rlp.EncodeToBytes(state.Account{
+	minerAccountAtBlock2LeafNode, _ = rlp.EncodeToBytes([]interface{}{
+		common.Hex2Bytes("3380c7b7ae81a58eb98d9c78de4a1fd7fd9535fc953ed2be602daaa41767312a"),
+		minerAccountAtBlock2,
+	})
+	account2AtBlock3, _ = rlp.EncodeToBytes(state.Account{
 		Nonce:    nonce0,
 		Balance:  big.NewInt(block2Account2Balance + miningReward),
 		CodeHash: common.HexToHash("0xc5d2460186f7233c927e7db2dcc703c0e500b653ca82273b7bfad8045d85a470").Bytes(),
 		Root:     common.HexToHash(originalContractRoot),
 	})
-	contractAccount2, _ = rlp.EncodeToBytes(state.Account{
+	account2AtBlock3LeafNode, _ = rlp.EncodeToBytes([]interface{}{
+		common.Hex2Bytes("3957f3e2f04a0764c3a0491b175f69926da61efbcc8f61fa1455fd2d2b4cdd45"),
+		account2AtBlock3,
+	})
+	contractAccountAtBlock3, _ = rlp.EncodeToBytes(state.Account{
 		Nonce:    nonce1,
 		Balance:  big.NewInt(0),
 		CodeHash: common.HexToHash("0x753f98a8d4328b15636e46f66f2cb4bc860100aa17967cc145fcd17d1d4710ea").Bytes(),
 		Root:     common.HexToHash(newContractRoot),
 	})
-	bankAccount3, _ = rlp.EncodeToBytes(state.Account{
+	contractAccountAtBlock3LeafNode, _ = rlp.EncodeToBytes([]interface{}{
+		common.Hex2Bytes("3114658a74d9cc9f7acf2c5cd696c3494d7c344d78bfec3add0d91ec4e8d1c45"),
+		contractAccountAtBlock3,
+	})
+	bankAccountAtBlock3, _ = rlp.EncodeToBytes(state.Account{
 		Nonce:    nonce3,
 		Balance:  big.NewInt(99989000),
 		CodeHash: common.HexToHash("0xc5d2460186f7233c927e7db2dcc703c0e500b653ca82273b7bfad8045d85a470").Bytes(),
 		Root:     common.HexToHash(originalContractRoot),
 	})
+	bankAccountAtBlock3LeafNode, _ = rlp.EncodeToBytes([]interface{}{
+		common.Hex2Bytes("30bf49f440a1cd0527e4d06e2765654c0f56452257516d793a9b8d604dcfdf2a"),
+		bankAccountAtBlock3,
+	})
 )
 
 type arguments struct {
@@ -137,17 +189,17 @@ type arguments struct {
 
 func TestBuilder(t *testing.T) {
 	blockHashes, blockMap, chain := testhelpers.MakeChain(3, testhelpers.Genesis)
-	contractLeafKey = testhelpers.AddressToLeafKey(testhelpers.ContractAddr)
+	contractLeafKey = testhelpers.AddressToEncodedPath(testhelpers.ContractAddr)
 	defer chain.Stop()
 	block0 = blockMap[blockHashes[3]]
 	block1 = blockMap[blockHashes[2]]
 	block2 = blockMap[blockHashes[1]]
 	block3 = blockMap[blockHashes[0]]
 	config := statediff.Config{
-		PathsAndProofs:    true,
+		LeafProofs:        true,
 		IntermediateNodes: false,
 	}
-	builder = statediff.NewBuilder(testhelpers.Testdb, chain, config)
+	builder = statediff.NewBuilder(chain, config)
 
 	var tests = []struct {
 		name              string
@@ -185,33 +237,30 @@ func TestBuilder(t *testing.T) {
 				BlockHash:   block1.Hash(),
 				CreatedAccounts: []statediff.AccountDiff{
 					{
-						Leaf:  true,
-						Key:   burnLeafKey.Bytes(),
-						Value: burnAccount1,
+						NodeType:    statediff.Leaf,
+						EncodedPath: minerLeafKey,
+						NodeValue:   minerAccountAtBlock1LeafNode,
 						Proof: [][]byte{{248, 113, 160, 87, 118, 82, 182, 37, 183, 123, 219, 91, 247, 123, 196, 63, 49, 37, 202, 215, 70, 77, 103, 157, 21, 117, 86, 82, 119, 211, 97, 27, 128, 83, 231, 128, 128, 128, 128, 160, 254, 136, 159, 16, 229, 219, 143, 44, 43, 243, 85, 146, 129, 82, 161, 127, 110, 59, 185, 154, 146, 65, 172, 109, 132, 199, 126, 98, 100, 80, 156, 121, 128, 128, 128, 128, 128, 128, 128, 128, 160, 17, 219, 12, 218, 52, 168, 150, 218, 190, 182, 131, 155, 176, 106, 56, 244, 149, 20, 207, 164, 134, 67, 89, 132, 235, 1, 59, 125, 249, 238, 133, 197, 128, 128},
 							{248, 113, 160, 51, 128, 199, 183, 174, 129, 165, 142, 185, 141, 156, 120, 222, 74, 31, 215, 253, 149, 53, 252, 149, 62, 210, 190, 96, 45, 170, 164, 23, 103, 49, 42, 184, 78, 248, 76, 128, 136, 27, 193, 109, 103, 78, 200, 0, 0, 160, 86, 232, 31, 23, 27, 204, 85, 166, 255, 131, 69, 230, 146, 192, 248, 110, 91, 72, 224, 27, 153, 108, 173, 192, 1, 98, 47, 181, 227, 99, 180, 33, 160, 197, 210, 70, 1, 134, 247, 35, 60, 146, 126, 125, 178, 220, 199, 3, 192, 229, 0, 182, 83, 202, 130, 39, 59, 123, 250, 216, 4, 93, 133, 164, 112}},
-						Path:    []byte{5, 3, 8, 0, 12, 7, 11, 7, 10, 14, 8, 1, 10, 5, 8, 14, 11, 9, 8, 13, 9, 12, 7, 8, 13, 14, 4, 10, 1, 15, 13, 7, 15, 13, 9, 5, 3, 5, 15, 12, 9, 5, 3, 14, 13, 2, 11, 14, 6, 0, 2, 13, 10, 10, 10, 4, 1, 7, 6, 7, 3, 1, 2, 10, 16},
 						Storage: []statediff.StorageDiff{},
 					},
 					{
-						Leaf:  true,
-						Key:   testhelpers.Account1LeafKey.Bytes(),
-						Value: account1,
+						NodeType:    statediff.Leaf,
+						EncodedPath: testhelpers.Account1LeafKey,
+						NodeValue:   account1AtBlock1LeafNode,
 						Proof: [][]byte{{248, 113, 160, 87, 118, 82, 182, 37, 183, 123, 219, 91, 247, 123, 196, 63, 49, 37, 202, 215, 70, 77, 103, 157, 21, 117, 86, 82, 119, 211, 97, 27, 128, 83, 231, 128, 128, 128, 128, 160, 254, 136, 159, 16, 229, 219, 143, 44, 43, 243, 85, 146, 129, 82, 161, 127, 110, 59, 185, 154, 146, 65, 172, 109, 132, 199, 126, 98, 100, 80, 156, 121, 128, 128, 128, 128, 128, 128, 128, 128, 160, 17, 219, 12, 218, 52, 168, 150, 218, 190, 182, 131, 155, 176, 106, 56, 244, 149, 20, 207, 164, 134, 67, 89, 132, 235, 1, 59, 125, 249, 238, 133, 197, 128, 128},
 							{248, 107, 160, 57, 38, 219, 105, 170, 206, 213, 24, 233, 185, 240, 244, 52, 164, 115, 231, 23, 65, 9, 201, 67, 84, 139, 184, 242, 59, 228, 28, 167, 109, 154, 210, 184, 72, 248, 70, 128, 130, 39, 16, 160, 86, 232, 31, 23, 27, 204, 85, 166, 255, 131, 69, 230, 146, 192, 248, 110, 91, 72, 224, 27, 153, 108, 173, 192, 1, 98, 47, 181, 227, 99, 180, 33, 160, 197, 210, 70, 1, 134, 247, 35, 60, 146, 126, 125, 178, 220, 199, 3, 192, 229, 0, 182, 83, 202, 130, 39, 59, 123, 250, 216, 4, 93, 133, 164, 112}},
-						Path:    []byte{14, 9, 2, 6, 13, 11, 6, 9, 10, 10, 12, 14, 13, 5, 1, 8, 14, 9, 11, 9, 15, 0, 15, 4, 3, 4, 10, 4, 7, 3, 14, 7, 1, 7, 4, 1, 0, 9, 12, 9, 4, 3, 5, 4, 8, 11, 11, 8, 15, 2, 3, 11, 14, 4, 1, 12, 10, 7, 6, 13, 9, 10, 13, 2, 16},
 						Storage: []statediff.StorageDiff{},
 					},
 				},
 				DeletedAccounts: emptyAccountDiffEventualMap,
 				UpdatedAccounts: []statediff.AccountDiff{
 					{
-						Leaf:  true,
-						Key:   testhelpers.BankLeafKey.Bytes(),
-						Value: bankAccount1,
+						NodeType:    statediff.Leaf,
+						EncodedPath: testhelpers.BankLeafKey,
+						NodeValue:   bankAccountAtBlock1LeafNode,
 						Proof: [][]byte{{248, 113, 160, 87, 118, 82, 182, 37, 183, 123, 219, 91, 247, 123, 196, 63, 49, 37, 202, 215, 70, 77, 103, 157, 21, 117, 86, 82, 119, 211, 97, 27, 128, 83, 231, 128, 128, 128, 128, 160, 254, 136, 159, 16, 229, 219, 143, 44, 43, 243, 85, 146, 129, 82, 161, 127, 110, 59, 185, 154, 146, 65, 172, 109, 132, 199, 126, 98, 100, 80, 156, 121, 128, 128, 128, 128, 128, 128, 128, 128, 160, 17, 219, 12, 218, 52, 168, 150, 218, 190, 182, 131, 155, 176, 106, 56, 244, 149, 20, 207, 164, 134, 67, 89, 132, 235, 1, 59, 125, 249, 238, 133, 197, 128, 128},
 							{248, 109, 160, 48, 191, 73, 244, 64, 161, 205, 5, 39, 228, 208, 110, 39, 101, 101, 76, 15, 86, 69, 34, 87, 81, 109, 121, 58, 155, 141, 96, 77, 207, 223, 42, 184, 74, 248, 72, 1, 132, 5, 245, 185, 240, 160, 86, 232, 31, 23, 27, 204, 85, 166, 255, 131, 69, 230, 146, 192, 248, 110, 91, 72, 224, 27, 153, 108, 173, 192, 1, 98, 47, 181, 227, 99, 180, 33, 160, 197, 210, 70, 1, 134, 247, 35, 60, 146, 126, 125, 178, 220, 199, 3, 192, 229, 0, 182, 83, 202, 130, 39, 59, 123, 250, 216, 4, 93, 133, 164, 112}},
-						Path:    []byte{0, 0, 11, 15, 4, 9, 15, 4, 4, 0, 10, 1, 12, 13, 0, 5, 2, 7, 14, 4, 13, 0, 6, 14, 2, 7, 6, 5, 6, 5, 4, 12, 0, 15, 5, 6, 4, 5, 2, 2, 5, 7, 5, 1, 6, 13, 7, 9, 3, 10, 9, 11, 8, 13, 6, 0, 4, 13, 12, 15, 13, 15, 2, 10, 16},
 						Storage: []statediff.StorageDiff{},
 					},
 				},
@@ -219,8 +268,9 @@ func TestBuilder(t *testing.T) {
 		},
 		{
 			"testBlock2",
-			//1000 transferred from testBankAddress to account1Addr
-			//1000 transferred from account1Addr to account2Addr
+			// 1000 transferred from testBankAddress to account1Addr
+			// 1000 transferred from account1Addr to account2Addr
+			// account1addr creates a new contract
 			arguments{
 				oldStateRoot: block1.Root(),
 				newStateRoot: block2.Root(),
@@ -232,59 +282,53 @@ func TestBuilder(t *testing.T) {
 				BlockHash:   block2.Hash(),
 				CreatedAccounts: []statediff.AccountDiff{
 					{
-						Leaf:  true,
-						Key:   contractLeafKey.Bytes(),
-						Value: contractAccount,
+						NodeType:    statediff.Leaf,
+						EncodedPath: contractLeafKey,
+						NodeValue:   contractAccountAtBlock2LeafNode,
 						Proof: [][]byte{{248, 177, 160, 177, 155, 238, 178, 242, 47, 83, 2, 49, 141, 155, 92, 149, 175, 245, 120, 233, 177, 101, 67, 46, 200, 23, 250, 41, 74, 135, 94, 61, 133, 51, 162, 128, 128, 128, 128, 160, 179, 86, 53, 29, 96, 188, 152, 148, 207, 31, 29, 108, 182, 140, 129, 95, 1, 49, 213, 15, 29, 168, 60, 64, 35, 160, 158, 200, 85, 207, 255, 145, 160, 114, 57, 32, 11, 115, 232, 140, 238, 165, 222, 121, 226, 208, 2, 192, 216, 67, 198, 179, 31, 181, 27, 208, 243, 99, 202, 48, 148, 207, 107, 106, 177, 128, 128, 128, 128, 128, 160, 10, 173, 165, 125, 110, 240, 77, 112, 149, 100, 135, 237, 25, 228, 116, 7, 195, 9, 210, 166, 208, 148, 101, 23, 244, 238, 84, 84, 211, 249, 138, 137, 128, 160, 255, 115, 147, 190, 57, 135, 174, 188, 86, 51, 227, 70, 22, 253, 237, 49, 24, 19, 149, 199, 142, 195, 186, 244, 70, 51, 138, 0, 146, 148, 117, 60, 128, 128},
 							{248, 105, 160, 49, 20, 101, 138, 116, 217, 204, 159, 122, 207, 44, 92, 214, 150, 195, 73, 77, 124, 52, 77, 120, 191, 236, 58, 221, 13, 145, 236, 78, 141, 28, 69, 184, 70, 248, 68, 1, 128, 160, 130, 30, 37, 86, 162, 144, 200, 100, 5, 248, 22, 10, 45, 102, 32, 66, 164, 49, 186, 69, 107, 157, 178, 101, 199, 155, 184, 55, 192, 75, 229, 240, 160, 117, 63, 152, 168, 212, 50, 139, 21, 99, 110, 70, 246, 111, 44, 180, 188, 134, 1, 0, 170, 23, 150, 124, 193, 69, 252, 209, 125, 29, 71, 16, 234}},
-						Path: []byte{6, 1, 1, 4, 6, 5, 8, 10, 7, 4, 13, 9, 12, 12, 9, 15, 7, 10, 12, 15, 2, 12, 5, 12, 13, 6, 9, 6, 12, 3, 4, 9, 4, 13, 7, 12, 3, 4, 4, 13, 7, 8, 11, 15, 14, 12, 3, 10, 13, 13, 0, 13, 9, 1, 14, 12, 4, 14, 8, 13, 1, 12, 4, 5, 16},
 						Storage: []statediff.StorageDiff{
 							{
-								Leaf:  true,
-								Key:   originalStorageKey,
-								Value: originalStorageValue,
-								Proof: [][]byte{{227, 161, 32, 41, 13, 236, 217, 84, 139, 98, 168, 214, 3, 69, 169, 136, 56, 111, 200, 75, 166, 188, 149, 72, 64, 8, 246, 54, 47, 147, 22, 14, 243, 229, 99, 1}},
-								Path:  []byte{2, 9, 0, 13, 14, 12, 13, 9, 5, 4, 8, 11, 6, 2, 10, 8, 13, 6, 0, 3, 4, 5, 10, 9, 8, 8, 3, 8, 6, 15, 12, 8, 4, 11, 10, 6, 11, 12, 9, 5, 4, 8, 4, 0, 0, 8, 15, 6, 3, 6, 2, 15, 9, 3, 1, 6, 0, 14, 15, 3, 14, 5, 6, 3, 16},
+								NodeType:    statediff.Leaf,
+								EncodedPath: originalStorageKey,
+								NodeValue:   originalStorageLeafNode,
+								Proof:       [][]byte{{227, 161, 32, 41, 13, 236, 217, 84, 139, 98, 168, 214, 3, 69, 169, 136, 56, 111, 200, 75, 166, 188, 149, 72, 64, 8, 246, 54, 47, 147, 22, 14, 243, 229, 99, 1}},
 							},
 						},
 					},
 					{
-						Leaf:  true,
-						Key:   testhelpers.Account2LeafKey.Bytes(),
-						Value: account2,
+						NodeType:    statediff.Leaf,
+						EncodedPath: testhelpers.Account2LeafKey,
+						NodeValue:   account2AtBlock2LeafNode,
 						Proof: [][]byte{{248, 177, 160, 177, 155, 238, 178, 242, 47, 83, 2, 49, 141, 155, 92, 149, 175, 245, 120, 233, 177, 101, 67, 46, 200, 23, 250, 41, 74, 135, 94, 61, 133, 51, 162, 128, 128, 128, 128, 160, 179, 86, 53, 29, 96, 188, 152, 148, 207, 31, 29, 108, 182, 140, 129, 95, 1, 49, 213, 15, 29, 168, 60, 64, 35, 160, 158, 200, 85, 207, 255, 145, 160, 114, 57, 32, 11, 115, 232, 140, 238, 165, 222, 121, 226, 208, 2, 192, 216, 67, 198, 179, 31, 181, 27, 208, 243, 99, 202, 48, 148, 207, 107, 106, 177, 128, 128, 128, 128, 128, 160, 10, 173, 165, 125, 110, 240, 77, 112, 149, 100, 135, 237, 25, 228, 116, 7, 195, 9, 210, 166, 208, 148, 101, 23, 244, 238, 84, 84, 211, 249, 138, 137, 128, 160, 255, 115, 147, 190, 57, 135, 174, 188, 86, 51, 227, 70, 22, 253, 237, 49, 24, 19, 149, 199, 142, 195, 186, 244, 70, 51, 138, 0, 146, 148, 117, 60, 128, 128},
 							{248, 107, 160, 57, 87, 243, 226, 240, 74, 7, 100, 195, 160, 73, 27, 23, 95, 105, 146, 109, 166, 30, 251, 204, 143, 97, 250, 20, 85, 253, 45, 43, 76, 221, 69, 184, 72, 248, 70, 128, 130, 3, 232, 160, 86, 232, 31, 23, 27, 204, 85, 166, 255, 131, 69, 230, 146, 192, 248, 110, 91, 72, 224, 27, 153, 108, 173, 192, 1, 98, 47, 181, 227, 99, 180, 33, 160, 197, 210, 70, 1, 134, 247, 35, 60, 146, 126, 125, 178, 220, 199, 3, 192, 229, 0, 182, 83, 202, 130, 39, 59, 123, 250, 216, 4, 93, 133, 164, 112}},
-						Path:    []byte{12, 9, 5, 7, 15, 3, 14, 2, 15, 0, 4, 10, 0, 7, 6, 4, 12, 3, 10, 0, 4, 9, 1, 11, 1, 7, 5, 15, 6, 9, 9, 2, 6, 13, 10, 6, 1, 14, 15, 11, 12, 12, 8, 15, 6, 1, 15, 10, 1, 4, 5, 5, 15, 13, 2, 13, 2, 11, 4, 12, 13, 13, 4, 5, 16},
 						Storage: []statediff.StorageDiff{},
 					},
 				},
 				DeletedAccounts: emptyAccountDiffEventualMap,
 				UpdatedAccounts: []statediff.AccountDiff{
 					{
-						Leaf:  true,
-						Key:   testhelpers.BankLeafKey.Bytes(),
-						Value: bankAccount2,
+						NodeType:    statediff.Leaf,
+						EncodedPath: testhelpers.BankLeafKey,
+						NodeValue:   bankAccountAtBlock2LeafNode,
 						Proof: [][]byte{{248, 177, 160, 177, 155, 238, 178, 242, 47, 83, 2, 49, 141, 155, 92, 149, 175, 245, 120, 233, 177, 101, 67, 46, 200, 23, 250, 41, 74, 135, 94, 61, 133, 51, 162, 128, 128, 128, 128, 160, 179, 86, 53, 29, 96, 188, 152, 148, 207, 31, 29, 108, 182, 140, 129, 95, 1, 49, 213, 15, 29, 168, 60, 64, 35, 160, 158, 200, 85, 207, 255, 145, 160, 114, 57, 32, 11, 115, 232, 140, 238, 165, 222, 121, 226, 208, 2, 192, 216, 67, 198, 179, 31, 181, 27, 208, 243, 99, 202, 48, 148, 207, 107, 106, 177, 128, 128, 128, 128, 128, 160, 10, 173, 165, 125, 110, 240, 77, 112, 149, 100, 135, 237, 25, 228, 116, 7, 195, 9, 210, 166, 208, 148, 101, 23, 244, 238, 84, 84, 211, 249, 138, 137, 128, 160, 255, 115, 147, 190, 57, 135, 174, 188, 86, 51, 227, 70, 22, 253, 237, 49, 24, 19, 149, 199, 142, 195, 186, 244, 70, 51, 138, 0, 146, 148, 117, 60, 128, 128},
 							{248, 109, 160, 48, 191, 73, 244, 64, 161, 205, 5, 39, 228, 208, 110, 39, 101, 101, 76, 15, 86, 69, 34, 87, 81, 109, 121, 58, 155, 141, 96, 77, 207, 223, 42, 184, 74, 248, 72, 2, 132, 5, 245, 182, 8, 160, 86, 232, 31, 23, 27, 204, 85, 166, 255, 131, 69, 230, 146, 192, 248, 110, 91, 72, 224, 27, 153, 108, 173, 192, 1, 98, 47, 181, 227, 99, 180, 33, 160, 197, 210, 70, 1, 134, 247, 35, 60, 146, 126, 125, 178, 220, 199, 3, 192, 229, 0, 182, 83, 202, 130, 39, 59, 123, 250, 216, 4, 93, 133, 164, 112}},
-						Path:    []byte{0, 0, 11, 15, 4, 9, 15, 4, 4, 0, 10, 1, 12, 13, 0, 5, 2, 7, 14, 4, 13, 0, 6, 14, 2, 7, 6, 5, 6, 5, 4, 12, 0, 15, 5, 6, 4, 5, 2, 2, 5, 7, 5, 1, 6, 13, 7, 9, 3, 10, 9, 11, 8, 13, 6, 0, 4, 13, 12, 15, 13, 15, 2, 10, 16},
 						Storage: []statediff.StorageDiff{},
 					},
 					{
-						Leaf:  true,
-						Key:   burnLeafKey.Bytes(),
-						Value: burnAccount2,
+						NodeType:    statediff.Leaf,
+						EncodedPath: minerLeafKey,
+						NodeValue:   minerAccountAtBlock2LeafNode,
 						Proof: [][]byte{{248, 177, 160, 177, 155, 238, 178, 242, 47, 83, 2, 49, 141, 155, 92, 149, 175, 245, 120, 233, 177, 101, 67, 46, 200, 23, 250, 41, 74, 135, 94, 61, 133, 51, 162, 128, 128, 128, 128, 160, 179, 86, 53, 29, 96, 188, 152, 148, 207, 31, 29, 108, 182, 140, 129, 95, 1, 49, 213, 15, 29, 168, 60, 64, 35, 160, 158, 200, 85, 207, 255, 145, 160, 114, 57, 32, 11, 115, 232, 140, 238, 165, 222, 121, 226, 208, 2, 192, 216, 67, 198, 179, 31, 181, 27, 208, 243, 99, 202, 48, 148, 207, 107, 106, 177, 128, 128, 128, 128, 128, 160, 10, 173, 165, 125, 110, 240, 77, 112, 149, 100, 135, 237, 25, 228, 116, 7, 195, 9, 210, 166, 208, 148, 101, 23, 244, 238, 84, 84, 211, 249, 138, 137, 128, 160, 255, 115, 147, 190, 57, 135, 174, 188, 86, 51, 227, 70, 22, 253, 237, 49, 24, 19, 149, 199, 142, 195, 186, 244, 70, 51, 138, 0, 146, 148, 117, 60, 128, 128},
 							{248, 113, 160, 51, 128, 199, 183, 174, 129, 165, 142, 185, 141, 156, 120, 222, 74, 31, 215, 253, 149, 53, 252, 149, 62, 210, 190, 96, 45, 170, 164, 23, 103, 49, 42, 184, 78, 248, 76, 128, 136, 55, 130, 218, 206, 157, 144, 0, 0, 160, 86, 232, 31, 23, 27, 204, 85, 166, 255, 131, 69, 230, 146, 192, 248, 110, 91, 72, 224, 27, 153, 108, 173, 192, 1, 98, 47, 181, 227, 99, 180, 33, 160, 197, 210, 70, 1, 134, 247, 35, 60, 146, 126, 125, 178, 220, 199, 3, 192, 229, 0, 182, 83, 202, 130, 39, 59, 123, 250, 216, 4, 93, 133, 164, 112}},
-						Path:    []byte{5, 3, 8, 0, 12, 7, 11, 7, 10, 14, 8, 1, 10, 5, 8, 14, 11, 9, 8, 13, 9, 12, 7, 8, 13, 14, 4, 10, 1, 15, 13, 7, 15, 13, 9, 5, 3, 5, 15, 12, 9, 5, 3, 14, 13, 2, 11, 14, 6, 0, 2, 13, 10, 10, 10, 4, 1, 7, 6, 7, 3, 1, 2, 10, 16},
 						Storage: []statediff.StorageDiff{},
 					},
 					{
-						Leaf:  true,
-						Key:   testhelpers.Account1LeafKey.Bytes(),
-						Value: account3,
+						NodeType:    statediff.Leaf,
+						EncodedPath: testhelpers.Account1LeafKey,
+						NodeValue:   account1AtBlock2LeafNode,
 						Proof: [][]byte{{248, 177, 160, 177, 155, 238, 178, 242, 47, 83, 2, 49, 141, 155, 92, 149, 175, 245, 120, 233, 177, 101, 67, 46, 200, 23, 250, 41, 74, 135, 94, 61, 133, 51, 162, 128, 128, 128, 128, 160, 179, 86, 53, 29, 96, 188, 152, 148, 207, 31, 29, 108, 182, 140, 129, 95, 1, 49, 213, 15, 29, 168, 60, 64, 35, 160, 158, 200, 85, 207, 255, 145, 160, 114, 57, 32, 11, 115, 232, 140, 238, 165, 222, 121, 226, 208, 2, 192, 216, 67, 198, 179, 31, 181, 27, 208, 243, 99, 202, 48, 148, 207, 107, 106, 177, 128, 128, 128, 128, 128, 160, 10, 173, 165, 125, 110, 240, 77, 112, 149, 100, 135, 237, 25, 228, 116, 7, 195, 9, 210, 166, 208, 148, 101, 23, 244, 238, 84, 84, 211, 249, 138, 137, 128, 160, 255, 115, 147, 190, 57, 135, 174, 188, 86, 51, 227, 70, 22, 253, 237, 49, 24, 19, 149, 199, 142, 195, 186, 244, 70, 51, 138, 0, 146, 148, 117, 60, 128, 128},
 							{248, 107, 160, 57, 38, 219, 105, 170, 206, 213, 24, 233, 185, 240, 244, 52, 164, 115, 231, 23, 65, 9, 201, 67, 84, 139, 184, 242, 59, 228, 28, 167, 109, 154, 210, 184, 72, 248, 70, 2, 130, 39, 16, 160, 86, 232, 31, 23, 27, 204, 85, 166, 255, 131, 69, 230, 146, 192, 248, 110, 91, 72, 224, 27, 153, 108, 173, 192, 1, 98, 47, 181, 227, 99, 180, 33, 160, 197, 210, 70, 1, 134, 247, 35, 60, 146, 126, 125, 178, 220, 199, 3, 192, 229, 0, 182, 83, 202, 130, 39, 59, 123, 250, 216, 4, 93, 133, 164, 112}},
-						Path:    []byte{14, 9, 2, 6, 13, 11, 6, 9, 10, 10, 12, 14, 13, 5, 1, 8, 14, 9, 11, 9, 15, 0, 15, 4, 3, 4, 10, 4, 7, 3, 14, 7, 1, 7, 4, 1, 0, 9, 12, 9, 4, 3, 5, 4, 8, 11, 11, 8, 15, 2, 3, 11, 14, 4, 1, 12, 10, 7, 6, 13, 9, 10, 13, 2, 16},
 						Storage: []statediff.StorageDiff{},
 					},
 				},
@@ -307,39 +351,35 @@ func TestBuilder(t *testing.T) {
 				DeletedAccounts: emptyAccountDiffEventualMap,
 				UpdatedAccounts: []statediff.AccountDiff{
 					{
-						Leaf:  true,
-						Key:   testhelpers.BankLeafKey.Bytes(),
-						Value: bankAccount3,
+						NodeType:    statediff.Leaf,
+						EncodedPath: testhelpers.BankLeafKey,
+						NodeValue:   bankAccountAtBlock3LeafNode,
 						Proof: [][]byte{{248, 177, 160, 101, 223, 138, 81, 34, 40, 229, 170, 198, 188, 136, 99, 7, 55, 33, 112, 160, 111, 181, 131, 167, 201, 131, 24, 201, 211, 177, 30, 159, 229, 246, 6, 128, 128, 128, 128, 160, 179, 86, 53, 29, 96, 188, 152, 148, 207, 31, 29, 108, 182, 140, 129, 95, 1, 49, 213, 15, 29, 168, 60, 64, 35, 160, 158, 200, 85, 207, 255, 145, 160, 32, 135, 108, 213, 150, 150, 110, 44, 170, 65, 75, 154, 74, 249, 94, 65, 74, 107, 100, 115, 39, 5, 3, 26, 22, 238, 138, 114, 254, 21, 6, 171, 128, 128, 128, 128, 128, 160, 4, 228, 121, 222, 255, 218, 60, 247, 15, 0, 34, 198, 28, 229, 180, 129, 109, 157, 68, 181, 248, 229, 200, 123, 29, 81, 145, 114, 90, 209, 205, 210, 128, 160, 255, 115, 147, 190, 57, 135, 174, 188, 86, 51, 227, 70, 22, 253, 237, 49, 24, 19, 149, 199, 142, 195, 186, 244, 70, 51, 138, 0, 146, 148, 117, 60, 128, 128},
 							{248, 109, 160, 48, 191, 73, 244, 64, 161, 205, 5, 39, 228, 208, 110, 39, 101, 101, 76, 15, 86, 69, 34, 87, 81, 109, 121, 58, 155, 141, 96, 77, 207, 223, 42, 184, 74, 248, 72, 3, 132, 5, 245, 182, 8, 160, 86, 232, 31, 23, 27, 204, 85, 166, 255, 131, 69, 230, 146, 192, 248, 110, 91, 72, 224, 27, 153, 108, 173, 192, 1, 98, 47, 181, 227, 99, 180, 33, 160, 197, 210, 70, 1, 134, 247, 35, 60, 146, 126, 125, 178, 220, 199, 3, 192, 229, 0, 182, 83, 202, 130, 39, 59, 123, 250, 216, 4, 93, 133, 164, 112}},
-						Path:    []byte{0, 0, 11, 15, 4, 9, 15, 4, 4, 0, 10, 1, 12, 13, 0, 5, 2, 7, 14, 4, 13, 0, 6, 14, 2, 7, 6, 5, 6, 5, 4, 12, 0, 15, 5, 6, 4, 5, 2, 2, 5, 7, 5, 1, 6, 13, 7, 9, 3, 10, 9, 11, 8, 13, 6, 0, 4, 13, 12, 15, 13, 15, 2, 10, 16},
 						Storage: []statediff.StorageDiff{},
 					},
 					{
-						Leaf:  true,
-						Key:   contractLeafKey.Bytes(),
-						Value: contractAccount2,
+						NodeType:    statediff.Leaf,
+						EncodedPath: contractLeafKey,
+						NodeValue:   contractAccountAtBlock3LeafNode,
 						Proof: [][]byte{{248, 177, 160, 101, 223, 138, 81, 34, 40, 229, 170, 198, 188, 136, 99, 7, 55, 33, 112, 160, 111, 181, 131, 167, 201, 131, 24, 201, 211, 177, 30, 159, 229, 246, 6, 128, 128, 128, 128, 160, 179, 86, 53, 29, 96, 188, 152, 148, 207, 31, 29, 108, 182, 140, 129, 95, 1, 49, 213, 15, 29, 168, 60, 64, 35, 160, 158, 200, 85, 207, 255, 145, 160, 32, 135, 108, 213, 150, 150, 110, 44, 170, 65, 75, 154, 74, 249, 94, 65, 74, 107, 100, 115, 39, 5, 3, 26, 22, 238, 138, 114, 254, 21, 6, 171, 128, 128, 128, 128, 128, 160, 4, 228, 121, 222, 255, 218, 60, 247, 15, 0, 34, 198, 28, 229, 180, 129, 109, 157, 68, 181, 248, 229, 200, 123, 29, 81, 145, 114, 90, 209, 205, 210, 128, 160, 255, 115, 147, 190, 57, 135, 174, 188, 86, 51, 227, 70, 22, 253, 237, 49, 24, 19, 149, 199, 142, 195, 186, 244, 70, 51, 138, 0, 146, 148, 117, 60, 128, 128},
 							{248, 105, 160, 49, 20, 101, 138, 116, 217, 204, 159, 122, 207, 44, 92, 214, 150, 195, 73, 77, 124, 52, 77, 120, 191, 236, 58, 221, 13, 145, 236, 78, 141, 28, 69, 184, 70, 248, 68, 1, 128, 160, 113, 224, 209, 75, 43, 147, 229, 199, 249, 116, 142, 105, 225, 254, 95, 23, 73, 138, 28, 58, 195, 206, 194, 159, 150, 175, 19, 215, 248, 164, 224, 112, 160, 117, 63, 152, 168, 212, 50, 139, 21, 99, 110, 70, 246, 111, 44, 180, 188, 134, 1, 0, 170, 23, 150, 124, 193, 69, 252, 209, 125, 29, 71, 16, 234}},
-						Path: []byte{6, 1, 1, 4, 6, 5, 8, 10, 7, 4, 13, 9, 12, 12, 9, 15, 7, 10, 12, 15, 2, 12, 5, 12, 13, 6, 9, 6, 12, 3, 4, 9, 4, 13, 7, 12, 3, 4, 4, 13, 7, 8, 11, 15, 14, 12, 3, 10, 13, 13, 0, 13, 9, 1, 14, 12, 4, 14, 8, 13, 1, 12, 4, 5, 16},
 						Storage: []statediff.StorageDiff{
 							{
-								Leaf:  true,
-								Key:   updatedStorageKey,
-								Value: updatedStorageValue,
+								NodeType:    statediff.Leaf,
+								EncodedPath: updatedStorageKey,
+								NodeValue:   updatedStorageLeafNode,
 								Proof: [][]byte{{248, 81, 128, 128, 160, 79, 197, 241, 58, 178, 249, 186, 12, 45, 168, 139, 1, 81, 171, 14, 124, 244, 216, 93, 8, 204, 164, 92, 205, 146, 60, 106, 183, 99, 35, 235, 40, 128, 160, 205, 69, 114, 89, 105, 97, 21, 35, 94, 100, 199, 130, 35, 52, 214, 33, 41, 226, 241, 96, 68, 37, 167, 218, 100, 148, 243, 95, 196, 91, 229, 24, 128, 128, 128, 128, 128, 128, 128, 128, 128, 128, 128, 128},
 									{226, 160, 48, 87, 135, 250, 18, 168, 35, 224, 242, 183, 99, 28, 196, 27, 59, 168, 130, 139, 51, 33, 202, 129, 17, 17, 250, 117, 205, 58, 163, 187, 90, 206, 3}},
-								Path: []byte{4, 0, 5, 7, 8, 7, 15, 10, 1, 2, 10, 8, 2, 3, 14, 0, 15, 2, 11, 7, 6, 3, 1, 12, 12, 4, 1, 11, 3, 11, 10, 8, 8, 2, 8, 11, 3, 3, 2, 1, 12, 10, 8, 1, 1, 1, 1, 1, 15, 10, 7, 5, 12, 13, 3, 10, 10, 3, 11, 11, 5, 10, 12, 14, 16},
 							},
 						},
 					},
 					{
-						Leaf:  true,
-						Key:   testhelpers.Account2LeafKey.Bytes(),
-						Value: account4,
+						NodeType:    statediff.Leaf,
+						EncodedPath: testhelpers.Account2LeafKey,
+						NodeValue:   account2AtBlock3LeafNode,
 						Proof: [][]byte{{248, 177, 160, 101, 223, 138, 81, 34, 40, 229, 170, 198, 188, 136, 99, 7, 55, 33, 112, 160, 111, 181, 131, 167, 201, 131, 24, 201, 211, 177, 30, 159, 229, 246, 6, 128, 128, 128, 128, 160, 179, 86, 53, 29, 96, 188, 152, 148, 207, 31, 29, 108, 182, 140, 129, 95, 1, 49, 213, 15, 29, 168, 60, 64, 35, 160, 158, 200, 85, 207, 255, 145, 160, 32, 135, 108, 213, 150, 150, 110, 44, 170, 65, 75, 154, 74, 249, 94, 65, 74, 107, 100, 115, 39, 5, 3, 26, 22, 238, 138, 114, 254, 21, 6, 171, 128, 128, 128, 128, 128, 160, 4, 228, 121, 222, 255, 218, 60, 247, 15, 0, 34, 198, 28, 229, 180, 129, 109, 157, 68, 181, 248, 229, 200, 123, 29, 81, 145, 114, 90, 209, 205, 210, 128, 160, 255, 115, 147, 190, 57, 135, 174, 188, 86, 51, 227, 70, 22, 253, 237, 49, 24, 19, 149, 199, 142, 195, 186, 244, 70, 51, 138, 0, 146, 148, 117, 60, 128, 128},
 							{248, 113, 160, 57, 87, 243, 226, 240, 74, 7, 100, 195, 160, 73, 27, 23, 95, 105, 146, 109, 166, 30, 251, 204, 143, 97, 250, 20, 85, 253, 45, 43, 76, 221, 69, 184, 78, 248, 76, 128, 136, 27, 193, 109, 103, 78, 200, 3, 232, 160, 86, 232, 31, 23, 27, 204, 85, 166, 255, 131, 69, 230, 146, 192, 248, 110, 91, 72, 224, 27, 153, 108, 173, 192, 1, 98, 47, 181, 227, 99, 180, 33, 160, 197, 210, 70, 1, 134, 247, 35, 60, 146, 126, 125, 178, 220, 199, 3, 192, 229, 0, 182, 83, 202, 130, 39, 59, 123, 250, 216, 4, 93, 133, 164, 112}},
-						Path:    []byte{12, 9, 5, 7, 15, 3, 14, 2, 15, 0, 4, 10, 0, 7, 6, 4, 12, 3, 10, 0, 4, 9, 1, 11, 1, 7, 5, 15, 6, 9, 9, 2, 6, 13, 10, 6, 1, 14, 15, 11, 12, 12, 8, 15, 6, 1, 15, 10, 1, 4, 5, 5, 15, 13, 2, 13, 2, 11, 4, 12, 13, 13, 4, 5, 16},
 						Storage: []statediff.StorageDiff{},
 					},
 				},
@@ -372,18 +412,18 @@ func TestBuilder(t *testing.T) {
 
 func TestBuilderWithWatchedAddressList(t *testing.T) {
 	blockHashes, blockMap, chain := testhelpers.MakeChain(3, testhelpers.Genesis)
-	contractLeafKey = testhelpers.AddressToLeafKey(testhelpers.ContractAddr)
+	contractLeafKey = testhelpers.AddressToEncodedPath(testhelpers.ContractAddr)
 	defer chain.Stop()
 	block0 = blockMap[blockHashes[3]]
 	block1 = blockMap[blockHashes[2]]
 	block2 = blockMap[blockHashes[1]]
 	block3 = blockMap[blockHashes[0]]
 	config := statediff.Config{
-		PathsAndProofs:    true,
+		LeafProofs:        true,
 		IntermediateNodes: false,
 		WatchedAddresses:  []string{testhelpers.Account1Addr.Hex(), testhelpers.ContractAddr.Hex()},
 	}
-	builder = statediff.NewBuilder(testhelpers.Testdb, chain, config)
+	builder = statediff.NewBuilder(chain, config)
 
 	var tests = []struct {
 		name              string
@@ -420,12 +460,11 @@ func TestBuilderWithWatchedAddressList(t *testing.T) {
 				BlockHash:   block1.Hash(),
 				CreatedAccounts: []statediff.AccountDiff{
 					{
-						Leaf:  true,
-						Key:   testhelpers.Account1LeafKey.Bytes(),
-						Value: account1,
+						NodeType:    statediff.Leaf,
+						EncodedPath: testhelpers.Account1LeafKey,
+						NodeValue:   account1AtBlock1LeafNode,
 						Proof: [][]byte{{248, 113, 160, 87, 118, 82, 182, 37, 183, 123, 219, 91, 247, 123, 196, 63, 49, 37, 202, 215, 70, 77, 103, 157, 21, 117, 86, 82, 119, 211, 97, 27, 128, 83, 231, 128, 128, 128, 128, 160, 254, 136, 159, 16, 229, 219, 143, 44, 43, 243, 85, 146, 129, 82, 161, 127, 110, 59, 185, 154, 146, 65, 172, 109, 132, 199, 126, 98, 100, 80, 156, 121, 128, 128, 128, 128, 128, 128, 128, 128, 160, 17, 219, 12, 218, 52, 168, 150, 218, 190, 182, 131, 155, 176, 106, 56, 244, 149, 20, 207, 164, 134, 67, 89, 132, 235, 1, 59, 125, 249, 238, 133, 197, 128, 128},
 							{248, 107, 160, 57, 38, 219, 105, 170, 206, 213, 24, 233, 185, 240, 244, 52, 164, 115, 231, 23, 65, 9, 201, 67, 84, 139, 184, 242, 59, 228, 28, 167, 109, 154, 210, 184, 72, 248, 70, 128, 130, 39, 16, 160, 86, 232, 31, 23, 27, 204, 85, 166, 255, 131, 69, 230, 146, 192, 248, 110, 91, 72, 224, 27, 153, 108, 173, 192, 1, 98, 47, 181, 227, 99, 180, 33, 160, 197, 210, 70, 1, 134, 247, 35, 60, 146, 126, 125, 178, 220, 199, 3, 192, 229, 0, 182, 83, 202, 130, 39, 59, 123, 250, 216, 4, 93, 133, 164, 112}},
-						Path:    []byte{14, 9, 2, 6, 13, 11, 6, 9, 10, 10, 12, 14, 13, 5, 1, 8, 14, 9, 11, 9, 15, 0, 15, 4, 3, 4, 10, 4, 7, 3, 14, 7, 1, 7, 4, 1, 0, 9, 12, 9, 4, 3, 5, 4, 8, 11, 11, 8, 15, 2, 3, 11, 14, 4, 1, 12, 10, 7, 6, 13, 9, 10, 13, 2, 16},
 						Storage: []statediff.StorageDiff{},
 					},
 				},
@@ -448,19 +487,17 @@ func TestBuilderWithWatchedAddressList(t *testing.T) {
 				BlockHash:   block2.Hash(),
 				CreatedAccounts: []statediff.AccountDiff{
 					{
-						Leaf:  true,
-						Key:   contractLeafKey.Bytes(),
-						Value: contractAccount,
+						NodeType:    statediff.Leaf,
+						EncodedPath: contractLeafKey,
+						NodeValue:   contractAccountAtBlock2LeafNode,
 						Proof: [][]byte{{248, 177, 160, 177, 155, 238, 178, 242, 47, 83, 2, 49, 141, 155, 92, 149, 175, 245, 120, 233, 177, 101, 67, 46, 200, 23, 250, 41, 74, 135, 94, 61, 133, 51, 162, 128, 128, 128, 128, 160, 179, 86, 53, 29, 96, 188, 152, 148, 207, 31, 29, 108, 182, 140, 129, 95, 1, 49, 213, 15, 29, 168, 60, 64, 35, 160, 158, 200, 85, 207, 255, 145, 160, 114, 57, 32, 11, 115, 232, 140, 238, 165, 222, 121, 226, 208, 2, 192, 216, 67, 198, 179, 31, 181, 27, 208, 243, 99, 202, 48, 148, 207, 107, 106, 177, 128, 128, 128, 128, 128, 160, 10, 173, 165, 125, 110, 240, 77, 112, 149, 100, 135, 237, 25, 228, 116, 7, 195, 9, 210, 166, 208, 148, 101, 23, 244, 238, 84, 84, 211, 249, 138, 137, 128, 160, 255, 115, 147, 190, 57, 135, 174, 188, 86, 51, 227, 70, 22, 253, 237, 49, 24, 19, 149, 199, 142, 195, 186, 244, 70, 51, 138, 0, 146, 148, 117, 60, 128, 128},
 							{248, 105, 160, 49, 20, 101, 138, 116, 217, 204, 159, 122, 207, 44, 92, 214, 150, 195, 73, 77, 124, 52, 77, 120, 191, 236, 58, 221, 13, 145, 236, 78, 141, 28, 69, 184, 70, 248, 68, 1, 128, 160, 130, 30, 37, 86, 162, 144, 200, 100, 5, 248, 22, 10, 45, 102, 32, 66, 164, 49, 186, 69, 107, 157, 178, 101, 199, 155, 184, 55, 192, 75, 229, 240, 160, 117, 63, 152, 168, 212, 50, 139, 21, 99, 110, 70, 246, 111, 44, 180, 188, 134, 1, 0, 170, 23, 150, 124, 193, 69, 252, 209, 125, 29, 71, 16, 234}},
-						Path: []byte{6, 1, 1, 4, 6, 5, 8, 10, 7, 4, 13, 9, 12, 12, 9, 15, 7, 10, 12, 15, 2, 12, 5, 12, 13, 6, 9, 6, 12, 3, 4, 9, 4, 13, 7, 12, 3, 4, 4, 13, 7, 8, 11, 15, 14, 12, 3, 10, 13, 13, 0, 13, 9, 1, 14, 12, 4, 14, 8, 13, 1, 12, 4, 5, 16},
 						Storage: []statediff.StorageDiff{
 							{
-								Leaf:  true,
-								Key:   originalStorageKey,
-								Value: originalStorageValue,
-								Proof: [][]byte{{227, 161, 32, 41, 13, 236, 217, 84, 139, 98, 168, 214, 3, 69, 169, 136, 56, 111, 200, 75, 166, 188, 149, 72, 64, 8, 246, 54, 47, 147, 22, 14, 243, 229, 99, 1}},
-								Path:  []byte{2, 9, 0, 13, 14, 12, 13, 9, 5, 4, 8, 11, 6, 2, 10, 8, 13, 6, 0, 3, 4, 5, 10, 9, 8, 8, 3, 8, 6, 15, 12, 8, 4, 11, 10, 6, 11, 12, 9, 5, 4, 8, 4, 0, 0, 8, 15, 6, 3, 6, 2, 15, 9, 3, 1, 6, 0, 14, 15, 3, 14, 5, 6, 3, 16},
+								NodeType:    statediff.Leaf,
+								EncodedPath: originalStorageKey,
+								NodeValue:   originalStorageLeafNode,
+								Proof:       [][]byte{{227, 161, 32, 41, 13, 236, 217, 84, 139, 98, 168, 214, 3, 69, 169, 136, 56, 111, 200, 75, 166, 188, 149, 72, 64, 8, 246, 54, 47, 147, 22, 14, 243, 229, 99, 1}},
 							},
 						},
 					},
@@ -468,12 +505,11 @@ func TestBuilderWithWatchedAddressList(t *testing.T) {
 				DeletedAccounts: emptyAccountDiffEventualMap,
 				UpdatedAccounts: []statediff.AccountDiff{
 					{
-						Leaf:  true,
-						Key:   testhelpers.Account1LeafKey.Bytes(),
-						Value: account3,
+						NodeType:    statediff.Leaf,
+						EncodedPath: testhelpers.Account1LeafKey,
+						NodeValue:   account1AtBlock2LeafNode,
 						Proof: [][]byte{{248, 177, 160, 177, 155, 238, 178, 242, 47, 83, 2, 49, 141, 155, 92, 149, 175, 245, 120, 233, 177, 101, 67, 46, 200, 23, 250, 41, 74, 135, 94, 61, 133, 51, 162, 128, 128, 128, 128, 160, 179, 86, 53, 29, 96, 188, 152, 148, 207, 31, 29, 108, 182, 140, 129, 95, 1, 49, 213, 15, 29, 168, 60, 64, 35, 160, 158, 200, 85, 207, 255, 145, 160, 114, 57, 32, 11, 115, 232, 140, 238, 165, 222, 121, 226, 208, 2, 192, 216, 67, 198, 179, 31, 181, 27, 208, 243, 99, 202, 48, 148, 207, 107, 106, 177, 128, 128, 128, 128, 128, 160, 10, 173, 165, 125, 110, 240, 77, 112, 149, 100, 135, 237, 25, 228, 116, 7, 195, 9, 210, 166, 208, 148, 101, 23, 244, 238, 84, 84, 211, 249, 138, 137, 128, 160, 255, 115, 147, 190, 57, 135, 174, 188, 86, 51, 227, 70, 22, 253, 237, 49, 24, 19, 149, 199, 142, 195, 186, 244, 70, 51, 138, 0, 146, 148, 117, 60, 128, 128},
 							{248, 107, 160, 57, 38, 219, 105, 170, 206, 213, 24, 233, 185, 240, 244, 52, 164, 115, 231, 23, 65, 9, 201, 67, 84, 139, 184, 242, 59, 228, 28, 167, 109, 154, 210, 184, 72, 248, 70, 2, 130, 39, 16, 160, 86, 232, 31, 23, 27, 204, 85, 166, 255, 131, 69, 230, 146, 192, 248, 110, 91, 72, 224, 27, 153, 108, 173, 192, 1, 98, 47, 181, 227, 99, 180, 33, 160, 197, 210, 70, 1, 134, 247, 35, 60, 146, 126, 125, 178, 220, 199, 3, 192, 229, 0, 182, 83, 202, 130, 39, 59, 123, 250, 216, 4, 93, 133, 164, 112}},
-						Path:    []byte{14, 9, 2, 6, 13, 11, 6, 9, 10, 10, 12, 14, 13, 5, 1, 8, 14, 9, 11, 9, 15, 0, 15, 4, 3, 4, 10, 4, 7, 3, 14, 7, 1, 7, 4, 1, 0, 9, 12, 9, 4, 3, 5, 4, 8, 11, 11, 8, 15, 2, 3, 11, 14, 4, 1, 12, 10, 7, 6, 13, 9, 10, 13, 2, 16},
 						Storage: []statediff.StorageDiff{},
 					},
 				},
@@ -496,20 +532,18 @@ func TestBuilderWithWatchedAddressList(t *testing.T) {
 				DeletedAccounts: emptyAccountDiffEventualMap,
 				UpdatedAccounts: []statediff.AccountDiff{
 					{
-						Leaf:  true,
-						Key:   contractLeafKey.Bytes(),
-						Value: contractAccount2,
+						NodeType:    statediff.Leaf,
+						EncodedPath: contractLeafKey,
+						NodeValue:   contractAccountAtBlock3LeafNode,
 						Proof: [][]byte{{248, 177, 160, 101, 223, 138, 81, 34, 40, 229, 170, 198, 188, 136, 99, 7, 55, 33, 112, 160, 111, 181, 131, 167, 201, 131, 24, 201, 211, 177, 30, 159, 229, 246, 6, 128, 128, 128, 128, 160, 179, 86, 53, 29, 96, 188, 152, 148, 207, 31, 29, 108, 182, 140, 129, 95, 1, 49, 213, 15, 29, 168, 60, 64, 35, 160, 158, 200, 85, 207, 255, 145, 160, 32, 135, 108, 213, 150, 150, 110, 44, 170, 65, 75, 154, 74, 249, 94, 65, 74, 107, 100, 115, 39, 5, 3, 26, 22, 238, 138, 114, 254, 21, 6, 171, 128, 128, 128, 128, 128, 160, 4, 228, 121, 222, 255, 218, 60, 247, 15, 0, 34, 198, 28, 229, 180, 129, 109, 157, 68, 181, 248, 229, 200, 123, 29, 81, 145, 114, 90, 209, 205, 210, 128, 160, 255, 115, 147, 190, 57, 135, 174, 188, 86, 51, 227, 70, 22, 253, 237, 49, 24, 19, 149, 199, 142, 195, 186, 244, 70, 51, 138, 0, 146, 148, 117, 60, 128, 128},
 							{248, 105, 160, 49, 20, 101, 138, 116, 217, 204, 159, 122, 207, 44, 92, 214, 150, 195, 73, 77, 124, 52, 77, 120, 191, 236, 58, 221, 13, 145, 236, 78, 141, 28, 69, 184, 70, 248, 68, 1, 128, 160, 113, 224, 209, 75, 43, 147, 229, 199, 249, 116, 142, 105, 225, 254, 95, 23, 73, 138, 28, 58, 195, 206, 194, 159, 150, 175, 19, 215, 248, 164, 224, 112, 160, 117, 63, 152, 168, 212, 50, 139, 21, 99, 110, 70, 246, 111, 44, 180, 188, 134, 1, 0, 170, 23, 150, 124, 193, 69, 252, 209, 125, 29, 71, 16, 234}},
-						Path: []byte{6, 1, 1, 4, 6, 5, 8, 10, 7, 4, 13, 9, 12, 12, 9, 15, 7, 10, 12, 15, 2, 12, 5, 12, 13, 6, 9, 6, 12, 3, 4, 9, 4, 13, 7, 12, 3, 4, 4, 13, 7, 8, 11, 15, 14, 12, 3, 10, 13, 13, 0, 13, 9, 1, 14, 12, 4, 14, 8, 13, 1, 12, 4, 5, 16},
 						Storage: []statediff.StorageDiff{
 							{
-								Leaf:  true,
-								Key:   updatedStorageKey,
-								Value: updatedStorageValue,
+								NodeType:    statediff.Leaf,
+								EncodedPath: updatedStorageKey,
+								NodeValue:   updatedStorageLeafNode,
 								Proof: [][]byte{{248, 81, 128, 128, 160, 79, 197, 241, 58, 178, 249, 186, 12, 45, 168, 139, 1, 81, 171, 14, 124, 244, 216, 93, 8, 204, 164, 92, 205, 146, 60, 106, 183, 99, 35, 235, 40, 128, 160, 205, 69, 114, 89, 105, 97, 21, 35, 94, 100, 199, 130, 35, 52, 214, 33, 41, 226, 241, 96, 68, 37, 167, 218, 100, 148, 243, 95, 196, 91, 229, 24, 128, 128, 128, 128, 128, 128, 128, 128, 128, 128, 128, 128},
 									{226, 160, 48, 87, 135, 250, 18, 168, 35, 224, 242, 183, 99, 28, 196, 27, 59, 168, 130, 139, 51, 33, 202, 129, 17, 17, 250, 117, 205, 58, 163, 187, 90, 206, 3}},
-								Path: []byte{4, 0, 5, 7, 8, 7, 15, 10, 1, 2, 10, 8, 2, 3, 14, 0, 15, 2, 11, 7, 6, 3, 1, 12, 12, 4, 1, 11, 3, 11, 10, 8, 8, 2, 8, 11, 3, 3, 2, 1, 12, 10, 8, 1, 1, 1, 1, 1, 15, 10, 7, 5, 12, 13, 3, 10, 10, 3, 11, 11, 5, 10, 12, 14, 16},
 							},
 						},
 					},
diff --git a/statediff/config.go b/statediff/config.go
index 70f09a749824..39625391f129 100644
--- a/statediff/config.go
+++ b/statediff/config.go
@@ -18,7 +18,6 @@ package statediff
 
 // Config is used to carry in parameters from CLI configuration
 type Config struct {
-	PathsAndProofs    bool
 	IntermediateNodes bool
 	StreamBlock       bool
 	WatchedAddresses  []string
diff --git a/statediff/doc.go b/statediff/doc.go
index 35c48c02d58c..184bc242ccc0 100644
--- a/statediff/doc.go
+++ b/statediff/doc.go
@@ -24,7 +24,6 @@ The service is spun up using the below CLI flags
 --statediff: boolean flag, turns on the service
 --statediff.streamblock: boolean flag, configures the service to associate and stream out the rest of the block data with the state diffs.
 --statediff.intermediatenodes: boolean flag, tells service to include intermediate (branch and extension) nodes; default (false) processes leaf nodes only.
---statediff.pathsandproofs: boolean flag, tells service to generate paths and proofs for the diffed storage and state trie leaf nodes.
 --statediff.watchedaddresses: string slice flag, used to limit the state diffing process to the given addresses. Usage: --statediff.watchedaddresses=addr1 --statediff.watchedaddresses=addr2 --statediff.watchedaddresses=addr3
 
 If you wish to use the websocket endpoint to subscribe to the statediff service, be sure to open up the Websocket RPC server with the `--ws` flag. The IPC-RPC server is turned on by default.
diff --git a/statediff/helpers.go b/statediff/helpers.go
index 2c5ddeb45f49..8ecb7be49980 100644
--- a/statediff/helpers.go
+++ b/statediff/helpers.go
@@ -20,6 +20,7 @@
 package statediff
 
 import (
+	"fmt"
 	"sort"
 	"strings"
 
@@ -99,3 +100,25 @@ func pathToStr(it trie.NodeIterator) string {
 func hasTerm(s []byte) bool {
 	return len(s) > 0 && s[len(s)-1] == 16
 }
+
+// CheckKeyType checks what type of key we have
+func CheckKeyType(elements []interface{}) (NodeType, error) {
+	if len(elements) > 2 {
+		return Branch, nil
+	}
+	if len(elements) < 2 {
+		return Unknown, nil
+	}
+	switch elements[0].([]byte)[0] / 16 {
+	case '\x00':
+		return Extension, nil
+	case '\x01':
+		return Extension, nil
+	case '\x02':
+		return Leaf, nil
+	case '\x03':
+		return Leaf, nil
+	default:
+		return Unknown, fmt.Errorf("unknown hex prefix")
+	}
+}
diff --git a/statediff/service.go b/statediff/service.go
index 7e8aa52389d2..651f92cfc697 100644
--- a/statediff/service.go
+++ b/statediff/service.go
@@ -26,7 +26,6 @@ import (
 	"github.com/ethereum/go-ethereum/common"
 	"github.com/ethereum/go-ethereum/core"
 	"github.com/ethereum/go-ethereum/core/types"
-	"github.com/ethereum/go-ethereum/ethdb"
 	"github.com/ethereum/go-ethereum/event"
 	"github.com/ethereum/go-ethereum/log"
 	"github.com/ethereum/go-ethereum/node"
@@ -81,11 +80,11 @@ type Service struct {
 }
 
 // NewStateDiffService creates a new statediff.Service
-func NewStateDiffService(db ethdb.Database, blockChain *core.BlockChain, config Config) (*Service, error) {
+func NewStateDiffService(blockChain *core.BlockChain, config Config) (*Service, error) {
 	return &Service{
 		Mutex:         sync.Mutex{},
 		BlockChain:    blockChain,
-		Builder:       NewBuilder(db, blockChain, config),
+		Builder:       NewBuilder(blockChain, config),
 		QuitChan:      make(chan bool),
 		Subscriptions: make(map[rpc.ID]Subscription),
 		StreamBlock:   config.StreamBlock,
diff --git a/statediff/testhelpers/helpers.go b/statediff/testhelpers/helpers.go
index ea41ec7bccb2..29d3046524f5 100644
--- a/statediff/testhelpers/helpers.go
+++ b/statediff/testhelpers/helpers.go
@@ -68,7 +68,7 @@ func testChainGen(i int, block *core.BlockGen) {
 		block.AddTx(tx2)
 		block.AddTx(tx3)
 	case 2:
-		// Block 3 is empty but was mined by account #2.
+		// Block 3 has a single tx from the bankAccount to the contract, that transfers no value, that is mined by account2
 		block.SetCoinbase(Account2Addr)
 		//get function: 60cd2685
 		//put function: c16431b9
diff --git a/statediff/testhelpers/mocks/api_test.go b/statediff/testhelpers/mocks/api_test.go
index c95712fd644e..9d8f5dca1436 100644
--- a/statediff/testhelpers/mocks/api_test.go
+++ b/statediff/testhelpers/mocks/api_test.go
@@ -34,7 +34,7 @@ import (
 
 var (
 	block0, block1              *types.Block
-	burnLeafKey                 = testhelpers.AddressToLeafKey(common.HexToAddress("0x0"))
+	burnLeafKey                 = testhelpers.AddressToEncodedPath(common.HexToAddress("0x0"))
 	emptyAccountDiffEventualMap = make([]statediff.AccountDiff, 0)
 	account1, _                 = rlp.EncodeToBytes(state.Account{
 		Nonce:    uint64(0),
@@ -42,18 +42,30 @@ var (
 		CodeHash: common.HexToHash("0xc5d2460186f7233c927e7db2dcc703c0e500b653ca82273b7bfad8045d85a470").Bytes(),
 		Root:     common.HexToHash("0x56e81f171bcc55a6ff8345e692c0f86e5b48e01b996cadc001622fb5e363b421"),
 	})
+	account1LeafNode, _ = rlp.EncodeToBytes([]interface{}{
+		common.Hex2Bytes("3926db69aaced518e9b9f0f434a473e7174109c943548bb8f23be41ca76d9ad2"),
+		account1,
+	})
 	burnAccount1, _ = rlp.EncodeToBytes(state.Account{
 		Nonce:    uint64(0),
 		Balance:  big.NewInt(2000000000000000000),
 		CodeHash: common.HexToHash("0xc5d2460186f7233c927e7db2dcc703c0e500b653ca82273b7bfad8045d85a470").Bytes(),
 		Root:     common.HexToHash("0x56e81f171bcc55a6ff8345e692c0f86e5b48e01b996cadc001622fb5e363b421"),
 	})
+	burnAccount1LeafNode, _ = rlp.EncodeToBytes([]interface{}{
+		common.Hex2Bytes("3380c7b7ae81a58eb98d9c78de4a1fd7fd9535fc953ed2be602daaa41767312a"),
+		burnAccount1,
+	})
 	bankAccount1, _ = rlp.EncodeToBytes(state.Account{
 		Nonce:    uint64(1),
 		Balance:  big.NewInt(testhelpers.TestBankFunds.Int64() - 10000),
 		CodeHash: common.HexToHash("0xc5d2460186f7233c927e7db2dcc703c0e500b653ca82273b7bfad8045d85a470").Bytes(),
 		Root:     common.HexToHash("0x56e81f171bcc55a6ff8345e692c0f86e5b48e01b996cadc001622fb5e363b421"),
 	})
+	bankAccount1LeafNode, _ = rlp.EncodeToBytes([]interface{}{
+		common.Hex2Bytes("30bf49f440a1cd0527e4d06e2765654c0f56452257516d793a9b8d604dcfdf2a"),
+		bankAccount1,
+	})
 	mockTotalDifficulty = big.NewInt(1337)
 )
 
@@ -80,33 +92,30 @@ func testSubscriptionAPI(t *testing.T) {
 		BlockHash:   block1.Hash(),
 		CreatedAccounts: []statediff.AccountDiff{
 			{
-				Leaf:  true,
-				Key:   burnLeafKey.Bytes(),
-				Value: burnAccount1,
+				NodeType:    statediff.Leaf,
+				EncodedPath: burnLeafKey,
+				NodeValue:   burnAccount1LeafNode,
 				Proof: [][]byte{{248, 113, 160, 87, 118, 82, 182, 37, 183, 123, 219, 91, 247, 123, 196, 63, 49, 37, 202, 215, 70, 77, 103, 157, 21, 117, 86, 82, 119, 211, 97, 27, 128, 83, 231, 128, 128, 128, 128, 160, 254, 136, 159, 16, 229, 219, 143, 44, 43, 243, 85, 146, 129, 82, 161, 127, 110, 59, 185, 154, 146, 65, 172, 109, 132, 199, 126, 98, 100, 80, 156, 121, 128, 128, 128, 128, 128, 128, 128, 128, 160, 17, 219, 12, 218, 52, 168, 150, 218, 190, 182, 131, 155, 176, 106, 56, 244, 149, 20, 207, 164, 134, 67, 89, 132, 235, 1, 59, 125, 249, 238, 133, 197, 128, 128},
 					{248, 113, 160, 51, 128, 199, 183, 174, 129, 165, 142, 185, 141, 156, 120, 222, 74, 31, 215, 253, 149, 53, 252, 149, 62, 210, 190, 96, 45, 170, 164, 23, 103, 49, 42, 184, 78, 248, 76, 128, 136, 27, 193, 109, 103, 78, 200, 0, 0, 160, 86, 232, 31, 23, 27, 204, 85, 166, 255, 131, 69, 230, 146, 192, 248, 110, 91, 72, 224, 27, 153, 108, 173, 192, 1, 98, 47, 181, 227, 99, 180, 33, 160, 197, 210, 70, 1, 134, 247, 35, 60, 146, 126, 125, 178, 220, 199, 3, 192, 229, 0, 182, 83, 202, 130, 39, 59, 123, 250, 216, 4, 93, 133, 164, 112}},
-				Path:    []byte{5, 3, 8, 0, 12, 7, 11, 7, 10, 14, 8, 1, 10, 5, 8, 14, 11, 9, 8, 13, 9, 12, 7, 8, 13, 14, 4, 10, 1, 15, 13, 7, 15, 13, 9, 5, 3, 5, 15, 12, 9, 5, 3, 14, 13, 2, 11, 14, 6, 0, 2, 13, 10, 10, 10, 4, 1, 7, 6, 7, 3, 1, 2, 10, 16},
 				Storage: []statediff.StorageDiff{},
 			},
 			{
-				Leaf:  true,
-				Key:   testhelpers.Account1LeafKey.Bytes(),
-				Value: account1,
+				NodeType:    statediff.Leaf,
+				EncodedPath: testhelpers.Account1LeafKey,
+				NodeValue:   account1LeafNode,
 				Proof: [][]byte{{248, 113, 160, 87, 118, 82, 182, 37, 183, 123, 219, 91, 247, 123, 196, 63, 49, 37, 202, 215, 70, 77, 103, 157, 21, 117, 86, 82, 119, 211, 97, 27, 128, 83, 231, 128, 128, 128, 128, 160, 254, 136, 159, 16, 229, 219, 143, 44, 43, 243, 85, 146, 129, 82, 161, 127, 110, 59, 185, 154, 146, 65, 172, 109, 132, 199, 126, 98, 100, 80, 156, 121, 128, 128, 128, 128, 128, 128, 128, 128, 160, 17, 219, 12, 218, 52, 168, 150, 218, 190, 182, 131, 155, 176, 106, 56, 244, 149, 20, 207, 164, 134, 67, 89, 132, 235, 1, 59, 125, 249, 238, 133, 197, 128, 128},
 					{248, 107, 160, 57, 38, 219, 105, 170, 206, 213, 24, 233, 185, 240, 244, 52, 164, 115, 231, 23, 65, 9, 201, 67, 84, 139, 184, 242, 59, 228, 28, 167, 109, 154, 210, 184, 72, 248, 70, 128, 130, 39, 16, 160, 86, 232, 31, 23, 27, 204, 85, 166, 255, 131, 69, 230, 146, 192, 248, 110, 91, 72, 224, 27, 153, 108, 173, 192, 1, 98, 47, 181, 227, 99, 180, 33, 160, 197, 210, 70, 1, 134, 247, 35, 60, 146, 126, 125, 178, 220, 199, 3, 192, 229, 0, 182, 83, 202, 130, 39, 59, 123, 250, 216, 4, 93, 133, 164, 112}},
-				Path:    []byte{14, 9, 2, 6, 13, 11, 6, 9, 10, 10, 12, 14, 13, 5, 1, 8, 14, 9, 11, 9, 15, 0, 15, 4, 3, 4, 10, 4, 7, 3, 14, 7, 1, 7, 4, 1, 0, 9, 12, 9, 4, 3, 5, 4, 8, 11, 11, 8, 15, 2, 3, 11, 14, 4, 1, 12, 10, 7, 6, 13, 9, 10, 13, 2, 16},
 				Storage: []statediff.StorageDiff{},
 			},
 		},
 		DeletedAccounts: emptyAccountDiffEventualMap,
 		UpdatedAccounts: []statediff.AccountDiff{
 			{
-				Leaf:  true,
-				Key:   testhelpers.BankLeafKey.Bytes(),
-				Value: bankAccount1,
+				NodeType:    statediff.Leaf,
+				EncodedPath: testhelpers.BankLeafKey,
+				NodeValue:   bankAccount1LeafNode,
 				Proof: [][]byte{{248, 113, 160, 87, 118, 82, 182, 37, 183, 123, 219, 91, 247, 123, 196, 63, 49, 37, 202, 215, 70, 77, 103, 157, 21, 117, 86, 82, 119, 211, 97, 27, 128, 83, 231, 128, 128, 128, 128, 160, 254, 136, 159, 16, 229, 219, 143, 44, 43, 243, 85, 146, 129, 82, 161, 127, 110, 59, 185, 154, 146, 65, 172, 109, 132, 199, 126, 98, 100, 80, 156, 121, 128, 128, 128, 128, 128, 128, 128, 128, 160, 17, 219, 12, 218, 52, 168, 150, 218, 190, 182, 131, 155, 176, 106, 56, 244, 149, 20, 207, 164, 134, 67, 89, 132, 235, 1, 59, 125, 249, 238, 133, 197, 128, 128},
 					{248, 109, 160, 48, 191, 73, 244, 64, 161, 205, 5, 39, 228, 208, 110, 39, 101, 101, 76, 15, 86, 69, 34, 87, 81, 109, 121, 58, 155, 141, 96, 77, 207, 223, 42, 184, 74, 248, 72, 1, 132, 5, 245, 185, 240, 160, 86, 232, 31, 23, 27, 204, 85, 166, 255, 131, 69, 230, 146, 192, 248, 110, 91, 72, 224, 27, 153, 108, 173, 192, 1, 98, 47, 181, 227, 99, 180, 33, 160, 197, 210, 70, 1, 134, 247, 35, 60, 146, 126, 125, 178, 220, 199, 3, 192, 229, 0, 182, 83, 202, 130, 39, 59, 123, 250, 216, 4, 93, 133, 164, 112}},
-				Path:    []byte{0, 0, 11, 15, 4, 9, 15, 4, 4, 0, 10, 1, 12, 13, 0, 5, 2, 7, 14, 4, 13, 0, 6, 14, 2, 7, 6, 5, 6, 5, 4, 12, 0, 15, 5, 6, 4, 5, 2, 2, 5, 7, 5, 1, 6, 13, 7, 9, 3, 10, 9, 11, 8, 13, 6, 0, 4, 13, 12, 15, 13, 15, 2, 10, 16},
 				Storage: []statediff.StorageDiff{},
 			},
 		},
@@ -116,7 +125,7 @@ func testSubscriptionAPI(t *testing.T) {
 	parentBlockChain := make(chan *types.Block)
 	serviceQuitChan := make(chan bool)
 	config := statediff.Config{
-		PathsAndProofs:    true,
+		LeafProofs:        true,
 		IntermediateNodes: false,
 	}
 	mockBlockChain := &BlockChain{}
@@ -124,7 +133,7 @@ func testSubscriptionAPI(t *testing.T) {
 	mockBlockChain.SetTdByHash(block1Hash, mockTotalDifficulty)
 	mockService := MockStateDiffService{
 		Mutex:           sync.Mutex{},
-		Builder:         statediff.NewBuilder(testhelpers.Testdb, chain, config),
+		Builder:         statediff.NewBuilder(chain, config),
 		BlockChan:       blockChan,
 		BlockChain:      mockBlockChain,
 		ParentBlockChan: parentBlockChain,
@@ -179,40 +188,37 @@ func testHTTPAPI(t *testing.T) {
 		BlockHash:   block1.Hash(),
 		CreatedAccounts: []statediff.AccountDiff{
 			{
-				Leaf:  true,
-				Key:   burnLeafKey.Bytes(),
-				Value: burnAccount1,
+				NodeType:    statediff.Leaf,
+				EncodedPath: burnLeafKey,
+				NodeValue:   burnAccount1LeafNode,
 				Proof: [][]byte{{248, 113, 160, 87, 118, 82, 182, 37, 183, 123, 219, 91, 247, 123, 196, 63, 49, 37, 202, 215, 70, 77, 103, 157, 21, 117, 86, 82, 119, 211, 97, 27, 128, 83, 231, 128, 128, 128, 128, 160, 254, 136, 159, 16, 229, 219, 143, 44, 43, 243, 85, 146, 129, 82, 161, 127, 110, 59, 185, 154, 146, 65, 172, 109, 132, 199, 126, 98, 100, 80, 156, 121, 128, 128, 128, 128, 128, 128, 128, 128, 160, 17, 219, 12, 218, 52, 168, 150, 218, 190, 182, 131, 155, 176, 106, 56, 244, 149, 20, 207, 164, 134, 67, 89, 132, 235, 1, 59, 125, 249, 238, 133, 197, 128, 128},
 					{248, 113, 160, 51, 128, 199, 183, 174, 129, 165, 142, 185, 141, 156, 120, 222, 74, 31, 215, 253, 149, 53, 252, 149, 62, 210, 190, 96, 45, 170, 164, 23, 103, 49, 42, 184, 78, 248, 76, 128, 136, 27, 193, 109, 103, 78, 200, 0, 0, 160, 86, 232, 31, 23, 27, 204, 85, 166, 255, 131, 69, 230, 146, 192, 248, 110, 91, 72, 224, 27, 153, 108, 173, 192, 1, 98, 47, 181, 227, 99, 180, 33, 160, 197, 210, 70, 1, 134, 247, 35, 60, 146, 126, 125, 178, 220, 199, 3, 192, 229, 0, 182, 83, 202, 130, 39, 59, 123, 250, 216, 4, 93, 133, 164, 112}},
-				Path:    []byte{5, 3, 8, 0, 12, 7, 11, 7, 10, 14, 8, 1, 10, 5, 8, 14, 11, 9, 8, 13, 9, 12, 7, 8, 13, 14, 4, 10, 1, 15, 13, 7, 15, 13, 9, 5, 3, 5, 15, 12, 9, 5, 3, 14, 13, 2, 11, 14, 6, 0, 2, 13, 10, 10, 10, 4, 1, 7, 6, 7, 3, 1, 2, 10, 16},
 				Storage: []statediff.StorageDiff{},
 			},
 			{
-				Leaf:  true,
-				Key:   testhelpers.Account1LeafKey.Bytes(),
-				Value: account1,
+				NodeType:    statediff.Leaf,
+				EncodedPath: testhelpers.Account1LeafKey,
+				NodeValue:   account1LeafNode,
 				Proof: [][]byte{{248, 113, 160, 87, 118, 82, 182, 37, 183, 123, 219, 91, 247, 123, 196, 63, 49, 37, 202, 215, 70, 77, 103, 157, 21, 117, 86, 82, 119, 211, 97, 27, 128, 83, 231, 128, 128, 128, 128, 160, 254, 136, 159, 16, 229, 219, 143, 44, 43, 243, 85, 146, 129, 82, 161, 127, 110, 59, 185, 154, 146, 65, 172, 109, 132, 199, 126, 98, 100, 80, 156, 121, 128, 128, 128, 128, 128, 128, 128, 128, 160, 17, 219, 12, 218, 52, 168, 150, 218, 190, 182, 131, 155, 176, 106, 56, 244, 149, 20, 207, 164, 134, 67, 89, 132, 235, 1, 59, 125, 249, 238, 133, 197, 128, 128},
 					{248, 107, 160, 57, 38, 219, 105, 170, 206, 213, 24, 233, 185, 240, 244, 52, 164, 115, 231, 23, 65, 9, 201, 67, 84, 139, 184, 242, 59, 228, 28, 167, 109, 154, 210, 184, 72, 248, 70, 128, 130, 39, 16, 160, 86, 232, 31, 23, 27, 204, 85, 166, 255, 131, 69, 230, 146, 192, 248, 110, 91, 72, 224, 27, 153, 108, 173, 192, 1, 98, 47, 181, 227, 99, 180, 33, 160, 197, 210, 70, 1, 134, 247, 35, 60, 146, 126, 125, 178, 220, 199, 3, 192, 229, 0, 182, 83, 202, 130, 39, 59, 123, 250, 216, 4, 93, 133, 164, 112}},
-				Path:    []byte{14, 9, 2, 6, 13, 11, 6, 9, 10, 10, 12, 14, 13, 5, 1, 8, 14, 9, 11, 9, 15, 0, 15, 4, 3, 4, 10, 4, 7, 3, 14, 7, 1, 7, 4, 1, 0, 9, 12, 9, 4, 3, 5, 4, 8, 11, 11, 8, 15, 2, 3, 11, 14, 4, 1, 12, 10, 7, 6, 13, 9, 10, 13, 2, 16},
 				Storage: []statediff.StorageDiff{},
 			},
 		},
 		DeletedAccounts: emptyAccountDiffEventualMap,
 		UpdatedAccounts: []statediff.AccountDiff{
 			{
-				Leaf:  true,
-				Key:   testhelpers.BankLeafKey.Bytes(),
-				Value: bankAccount1,
+				NodeType:    statediff.Leaf,
+				EncodedPath: testhelpers.BankLeafKey,
+				NodeValue:   bankAccount1LeafNode,
 				Proof: [][]byte{{248, 113, 160, 87, 118, 82, 182, 37, 183, 123, 219, 91, 247, 123, 196, 63, 49, 37, 202, 215, 70, 77, 103, 157, 21, 117, 86, 82, 119, 211, 97, 27, 128, 83, 231, 128, 128, 128, 128, 160, 254, 136, 159, 16, 229, 219, 143, 44, 43, 243, 85, 146, 129, 82, 161, 127, 110, 59, 185, 154, 146, 65, 172, 109, 132, 199, 126, 98, 100, 80, 156, 121, 128, 128, 128, 128, 128, 128, 128, 128, 160, 17, 219, 12, 218, 52, 168, 150, 218, 190, 182, 131, 155, 176, 106, 56, 244, 149, 20, 207, 164, 134, 67, 89, 132, 235, 1, 59, 125, 249, 238, 133, 197, 128, 128},
 					{248, 109, 160, 48, 191, 73, 244, 64, 161, 205, 5, 39, 228, 208, 110, 39, 101, 101, 76, 15, 86, 69, 34, 87, 81, 109, 121, 58, 155, 141, 96, 77, 207, 223, 42, 184, 74, 248, 72, 1, 132, 5, 245, 185, 240, 160, 86, 232, 31, 23, 27, 204, 85, 166, 255, 131, 69, 230, 146, 192, 248, 110, 91, 72, 224, 27, 153, 108, 173, 192, 1, 98, 47, 181, 227, 99, 180, 33, 160, 197, 210, 70, 1, 134, 247, 35, 60, 146, 126, 125, 178, 220, 199, 3, 192, 229, 0, 182, 83, 202, 130, 39, 59, 123, 250, 216, 4, 93, 133, 164, 112}},
-				Path:    []byte{0, 0, 11, 15, 4, 9, 15, 4, 4, 0, 10, 1, 12, 13, 0, 5, 2, 7, 14, 4, 13, 0, 6, 14, 2, 7, 6, 5, 6, 5, 4, 12, 0, 15, 5, 6, 4, 5, 2, 2, 5, 7, 5, 1, 6, 13, 7, 9, 3, 10, 9, 11, 8, 13, 6, 0, 4, 13, 12, 15, 13, 15, 2, 10, 16},
 				Storage: []statediff.StorageDiff{},
 			},
 		},
 	}
 	expectedStateDiffBytes, _ := rlp.EncodeToBytes(expectedStateDiff)
 	config := statediff.Config{
-		PathsAndProofs:    true,
+		LeafProofs:        true,
 		IntermediateNodes: false,
 	}
 	mockBlockChain := &BlockChain{}
@@ -222,7 +228,7 @@ func testHTTPAPI(t *testing.T) {
 	mockBlockChain.SetTdByHash(block1Hash, big.NewInt(1337))
 	mockService := MockStateDiffService{
 		Mutex:       sync.Mutex{},
-		Builder:     statediff.NewBuilder(testhelpers.Testdb, chain, config),
+		Builder:     statediff.NewBuilder(chain, config),
 		BlockChain:  mockBlockChain,
 		streamBlock: true,
 	}
diff --git a/statediff/testhelpers/test_data.go b/statediff/testhelpers/test_data.go
index 604bd23b74eb..7368f542a693 100644
--- a/statediff/testhelpers/test_data.go
+++ b/statediff/testhelpers/test_data.go
@@ -27,12 +27,20 @@ import (
 )
 
 // AddressToLeafKey hashes an returns an address
-func AddressToLeafKey(address common.Address) common.Hash {
-	return common.BytesToHash(crypto.Keccak256(address[:]))
+func AddressToLeafKey(address common.Address) []byte {
+	return crypto.Keccak256(address[:])
+}
+
+// AddressToEncodedPath hashes an address and appends the even-number leaf flag to it
+func AddressToEncodedPath(address common.Address) []byte {
+	addrHash := crypto.Keccak256(address[:])
+	decodedPath := append(EvenLeafFlag, addrHash...)
+	return decodedPath
 }
 
 // Test variables
 var (
+	EvenLeafFlag = []byte{byte(2) << 4}
 	BlockNumber  = big.NewInt(rand.Int63())
 	BlockHash    = "0xfa40fbe2d98d98b3363a778d52f2bcd29d6790b9b3f3cab2b167fd12d3550f73"
 	CodeHash     = common.Hex2Bytes("0xc5d2460186f7233c927e7db2dcc703c0e500b653ca82273b7bfad8045d85a470")
@@ -43,7 +51,7 @@ var (
 	Testdb          = rawdb.NewMemoryDatabase()
 	TestBankKey, _  = crypto.HexToECDSA("b71c71a67e1177ad4e901695e1b4b9ee17ae16c6668d313eac2f96dbcda3f291")
 	TestBankAddress = crypto.PubkeyToAddress(TestBankKey.PublicKey) //0x71562b71999873DB5b286dF957af199Ec94617F7
-	BankLeafKey     = AddressToLeafKey(TestBankAddress)
+	BankLeafKey     = AddressToEncodedPath(TestBankAddress)
 	TestBankFunds   = big.NewInt(100000000)
 	Genesis         = core.GenesisBlockForTesting(Testdb, TestBankAddress, TestBankFunds)
 
@@ -51,8 +59,8 @@ var (
 	Account2Key, _  = crypto.HexToECDSA("49a7b37aa6f6645917e7b807e9d1c00d4fa71f18343b0d4122a4d2df64dd6fee")
 	Account1Addr    = crypto.PubkeyToAddress(Account1Key.PublicKey) //0x703c4b2bD70c169f5717101CaeE543299Fc946C7
 	Account2Addr    = crypto.PubkeyToAddress(Account2Key.PublicKey) //0x0D3ab14BBaD3D99F4203bd7a11aCB94882050E7e
-	Account1LeafKey = AddressToLeafKey(Account1Addr)
-	Account2LeafKey = AddressToLeafKey(Account2Addr)
+	Account1LeafKey = AddressToEncodedPath(Account1Addr)
+	Account2LeafKey = AddressToEncodedPath(Account2Addr)
 	ContractCode    = common.Hex2Bytes("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")
 	ContractAddr    common.Address
 )
diff --git a/statediff/types.go b/statediff/types.go
index b527221b64ef..4ca73daba0a7 100644
--- a/statediff/types.go
+++ b/statediff/types.go
@@ -77,21 +77,19 @@ type StateDiff struct {
 
 // AccountDiff holds the data for a single state diff node
 type AccountDiff struct {
-	Leaf    bool          `json:"leaf"        gencodec:"required"`
-	Key     []byte        `json:"key"         gencodec:"required"`
-	Value   []byte        `json:"value"       gencodec:"required"`
-	Proof   [][]byte      `json:"proof"       gencodec:"required"`
-	Path    []byte        `json:"path"        gencodec:"required"`
-	Storage []StorageDiff `json:"storage"     gencodec:"required"`
+	NodeType  NodeType      `json:"nodeType"        gencodec:"required"`
+	Path      []byte        `json:"path"         gencodec:"required"`
+	NodeValue []byte        `json:"value"       gencodec:"required"`
+	Storage   []StorageDiff `json:"storage"`
+	LeafKey   []byte        `json:"leafKey"`
 }
 
 // StorageDiff holds the data for a single storage diff node
 type StorageDiff struct {
-	Leaf  bool     `json:"leaf"        gencodec:"required"`
-	Key   []byte   `json:"key"         gencodec:"required"`
-	Value []byte   `json:"value"       gencodec:"required"`
-	Proof [][]byte `json:"proof"       gencodec:"required"`
-	Path  []byte   `json:"path"        gencodec:"required"`
+	NodeType  NodeType `json:"nodeType"        gencodec:"required"`
+	Path      []byte   `json:"path"     gencodec:"required"`
+	NodeValue []byte   `json:"value"       gencodec:"required"`
+	LeafKey   []byte   `json:"leafKey"`
 }
 
 // AccountsMap is a mapping of keccak256(address) => accountWrapper
@@ -99,10 +97,19 @@ type AccountsMap map[common.Hash]accountWrapper
 
 // AccountWrapper is used to temporary associate the unpacked account with its raw values
 type accountWrapper struct {
-	Account  *state.Account
-	Leaf     bool
-	RawKey   []byte
-	RawValue []byte
-	Proof    [][]byte
-	Path     []byte
+	Account   *state.Account
+	NodeType  NodeType
+	Path      []byte
+	NodeValue []byte
+	LeafKey   []byte
 }
+
+// NodeType for explicitly setting type of node
+type NodeType string
+
+const (
+	Unknown   NodeType = "Unknown"
+	Leaf      NodeType = "Leaf"
+	Extension NodeType = "Extension"
+	Branch    NodeType = "Branch"
+)
diff --git a/trie/encoding.go b/trie/encoding.go
index 425326db8fca..49c42a3a4a4a 100644
--- a/trie/encoding.go
+++ b/trie/encoding.go
@@ -34,6 +34,11 @@ package trie
 // in the case of an odd number. All remaining nibbles (now an even number) fit properly
 // into the remaining bytes. Compact encoding is used for nodes stored on disk.
 
+// HexToCompact converts a hex path to the compact encoded format
+func HexToCompact(hex []byte) []byte {
+	return hexToCompact(hex)
+}
+
 func hexToCompact(hex []byte) []byte {
 	terminator := byte(0)
 	if hasTerm(hex) {
@@ -51,6 +56,11 @@ func hexToCompact(hex []byte) []byte {
 	return buf
 }
 
+// CompactToHex converts a compact encoded path to hex format
+func CompactToHex(compact []byte) []byte {
+	return compactToHex(compact)
+}
+
 func compactToHex(compact []byte) []byte {
 	if len(compact) == 0 {
 		return compact