diff --git a/swarm/storage/binarymerkle.go b/swarm/storage/binarymerkle.go
index 0c31db1698..972dea17cc 100644
--- a/swarm/storage/binarymerkle.go
+++ b/swarm/storage/binarymerkle.go
@@ -6,13 +6,21 @@ import (
 	"bytes"
 	_ "crypto/sha256"
 	"encoding/binary"
+	"errors"
 	"fmt"
+	"hash"
+	"io"
 
 	"github.com/ethereum/go-ethereum/crypto/sha3"
 )
 
 var hashFunc Hasher = sha3.NewKeccak256 //default hasher
 
+type state struct {
+	btree BTree
+	root  Root
+}
+
 // A merkle tree for a user that stores the entire tree
 // Specifically this tree is left a leaning balanced binary tree
 // Where each node holds the hash of its leaves
@@ -313,3 +321,64 @@ func checkNode(height int, proof [][]byte, index, count uint64) ([]byte, bool) {
 	hash := h.Sum(make([]byte, 0))
 	return hash, ok
 }
+
+// ShakeHash defines the interface to hash functions that
+// support arbitrary-length output.
+type BMTHash interface {
+	// Write absorbs more data into the hash's state. It panics if input is
+	// written to it after output has been read from it.
+	io.Writer
+
+	// Read reads more output from the hash; reading affects the hash's
+	// state. (ShakeHash.Read is thus very different from Hash.Sum)
+	// It never returns an error.
+	io.Reader
+
+	// Clone returns a copy of the ShakeHash in its current state.
+	Clone() BMTHash
+
+	// Reset resets the ShakeHash to its initial state.
+	Reset()
+}
+
+// Reset clears the internal state by zeroing the sponge state and
+func (d *state) Reset() {
+	d.root = Root{Count: 0, Base: nil}
+	d.btree = BTree{count: 0, root: nil, rootHash: nil}
+}
+
+// Write absorbs more data into the hash's state. It produces an error
+// if more data is written to the ShakeHash after writing
+func (d *state) Write(p []byte) (written int, err error) {
+	tree, r, count, err1 := BuildBMT(hashFunc, p, 32)
+	d.btree = *tree
+	d.root = *r
+
+	if err1 != 0 {
+		err = errors.New("bmt write error")
+	}
+
+	return count, err
+}
+
+func (d *state) Get(p []byte) (written int) {
+	return 3
+}
+
+// Sum return the root hash of the BMT
+func (d *state) Sum(in []byte) []byte {
+	return d.root.Base
+}
+
+// BlockSize returns the rate of sponge underlying this hash function.
+func (d *state) BlockSize() int { return 0 }
+
+// Size returns the output size of the hash function in bytes.
+func (d *state) Size() int { return 32 }
+
+// NewBMTSHA3 creates a new BMT hash
+func NewBMTSHA3() hash.Hash {
+	tmpbtree := BTree{count: 0, root: nil, rootHash: nil}
+	troot := Root{Count: 0, Base: nil}
+	return &state{btree: tmpbtree, root: troot}
+}
diff --git a/swarm/storage/binarymerkle_test.go b/swarm/storage/binarymerkle_test.go
index 98ddc13fbe..28faea5032 100644
--- a/swarm/storage/binarymerkle_test.go
+++ b/swarm/storage/binarymerkle_test.go
@@ -41,6 +41,35 @@ func TestGetHeight2(t *testing.T) {
 	}
 }
 
+func TestBuildBMT3(t *testing.T) {
+
+	// Grab some data to make the tree out of, and partition
+	data, err := ioutil.ReadFile("binarymerkle_test.go") // assume testdata exists
+	if err != nil {
+		fmt.Println(err)
+		return
+	}
+	var thashFunc = MakeHashFunc("BMTSHA3")
+	var h = thashFunc()
+	h.Reset()
+	h.Write(data)
+	var key = h.Sum(nil)
+
+	fmt.Println(key)
+
+	// for i := 0; i < count; i++ {
+	// 	p := tree.InclusionProof(i)
+	//
+	// 	fmt.Println(p)
+	//
+	// 	ok := r.CheckProof(sha3.NewKeccak256, p, i)
+	// 	if !ok {
+	// 		t.Errorf("proof %d failed", i)
+	// 	}
+	// }
+	// fmt.Println("done")
+}
+
 func TestBuildBMT(t *testing.T) {
 
 	// Grab some data to make the tree out of, and partition
@@ -50,7 +79,7 @@ func TestBuildBMT(t *testing.T) {
 		return
 	}
 
-	tree, r, count, err1 := BuildBMT(sha3.NewKeccak256, data, 32)
+	tree, r, count, err1 := BuildBMT(sha3.NewKeccak256, data, 1)
 
 	switch err1 {
 	case -1:
@@ -61,7 +90,7 @@ func TestBuildBMT(t *testing.T) {
 		t.Errorf("BMT leaf count validation error")
 		return
 	case 0:
-		fmt.Println("Build BMT OK")
+		fmt.Println("Build BMT OK  ", count)
 	}
 
 	fmt.Println(tree.Root())
@@ -76,6 +105,7 @@ func TestBuildBMT(t *testing.T) {
 			t.Errorf("proof %d failed", i)
 		}
 	}
+	fmt.Println("done")
 }
 
 func TestBuildBMT2(t *testing.T) {
@@ -88,7 +118,7 @@ func TestBuildBMT2(t *testing.T) {
 	}
 
 	fmt.Println(len(data))
-	blocks := splitData(data, 32)
+	blocks := splitData(data, 2)
 
 	count := len(blocks)
 
diff --git a/swarm/storage/chunker.go b/swarm/storage/chunker.go
index d55875369d..a2eda3fdf7 100644
--- a/swarm/storage/chunker.go
+++ b/swarm/storage/chunker.go
@@ -51,7 +51,8 @@ data_{i} := size(subtree_{i}) || key_{j} || key_{j+1} .... || key_{j+n-1}
 */
 
 const (
-	defaultHash = "SHA3" // http://golang.org/pkg/hash/#Hash
+	//defaultHash = "SHA3"
+	defaultHash = "BMTSHA3" // http://golang.org/pkg/hash/#Hash
 	// defaultHash           = "SHA256" // http://golang.org/pkg/hash/#Hash
 	defaultBranches int64 = 128
 	// hashSize     int64 = hasherfunc.New().Size() // hasher knows about its own length in bytes
diff --git a/swarm/storage/types.go b/swarm/storage/types.go
index cc5ded931d..1afb82e48e 100644
--- a/swarm/storage/types.go
+++ b/swarm/storage/types.go
@@ -83,6 +83,8 @@ func MakeHashFunc(hash string) Hasher {
 		return crypto.SHA256.New
 	case "SHA3":
 		return sha3.NewKeccak256
+	case "BMTSHA3":
+		return NewBMTSHA3
 	}
 	return nil
 }