diff --git a/vt.go b/vt.go
new file mode 100644
index 0000000..81a05d0
--- /dev/null
+++ b/vt.go
@@ -0,0 +1,179 @@
+package arbo
+
+import (
+	"bytes"
+	"fmt"
+)
+
+type node struct {
+	l    *node
+	r    *node
+	k    []byte
+	v    []byte
+	path []bool
+	h    []byte
+}
+
+type params struct {
+	maxLevels    int
+	hashFunction HashFunction
+	emptyHash    []byte
+}
+
+// vt stands for virtual tree. It's a tree that does not have any computed hash
+// while placing the leafs. Once all the leafs are placed, it computes all the
+// hashes. In this way, each node hash is only computed one time.
+type vt struct {
+	root   *node
+	params *params
+}
+
+func newVT(maxLevels int, hash HashFunction) vt {
+	return vt{
+		root: nil,
+		params: &params{
+			maxLevels:    maxLevels,
+			hashFunction: hash,
+			emptyHash:    make([]byte, hash.Len()), // empty
+		},
+	}
+}
+
+func (t *vt) add(k, v []byte) error {
+	leaf := newLeafNode(t.params, k, v)
+	if t.root == nil {
+		t.root = leaf
+		return nil
+	}
+
+	if err := t.root.add(t.params, 0, leaf); err != nil {
+		return err
+	}
+
+	return nil
+}
+
+func newLeafNode(p *params, k, v []byte) *node {
+	keyPath := make([]byte, p.hashFunction.Len())
+	copy(keyPath[:], k)
+	path := getPath(p.maxLevels, keyPath)
+	n := &node{
+		k:    k,
+		v:    v,
+		path: path,
+	}
+	return n
+}
+
+type virtualNodeType int
+
+const (
+	vtEmpty = 0 // for convenience uses same value that PrefixValueEmpty
+	vtLeaf  = 1 // for convenience uses same value that PrefixValueLeaf
+	vtMid   = 2 // for convenience uses same value that PrefixValueIntermediate
+)
+
+func (n *node) typ() virtualNodeType {
+	if n.l == nil && n.r == nil && n.k != nil {
+		return vtLeaf
+	}
+	if n.l != nil || n.r != nil {
+		return vtMid
+	}
+	return vtEmpty
+}
+
+func (n *node) add(p *params, currLvl int, leaf *node) error {
+	if currLvl > p.maxLevels-1 {
+		return fmt.Errorf("max virtual level %d", currLvl)
+	}
+
+	if n == nil {
+		// n = leaf // TMP!
+		return nil
+	}
+
+	t := n.typ()
+	switch t {
+	case vtMid:
+		if leaf.path[currLvl] {
+			//right
+			if n.r == nil {
+				// empty sub-node, add the leaf here
+				n.r = leaf
+			}
+			if err := n.r.add(p, currLvl+1, leaf); err != nil {
+				return err
+			}
+		} else {
+			if n.l == nil {
+				// empty sub-node, add the leaf here
+				n.l = leaf
+			}
+			if err := n.l.add(p, currLvl+1, leaf); err != nil {
+				return err
+			}
+		}
+	case vtLeaf:
+		if bytes.Equal(n.k, leaf.k) {
+			return fmt.Errorf("key already exists")
+		}
+
+		oldLeaf := &node{
+			k:    n.k,
+			v:    n.v,
+			path: n.path,
+		}
+		// remove values from current node (converting it to mid node)
+		n.k = nil
+		n.v = nil
+		n.path = nil
+		if err := n.downUntilDivergence(p, currLvl, oldLeaf, leaf); err != nil {
+			return err
+		}
+	default:
+		return fmt.Errorf("ERR")
+	}
+
+	return nil
+}
+
+func (n *node) downUntilDivergence(p *params, currLvl int, oldLeaf, newLeaf *node) error {
+	if currLvl > p.maxLevels-1 {
+		return fmt.Errorf("max virtual level %d", currLvl)
+	}
+
+	// if oldLeaf.path[currLvl+1] != newLeaf.path[currLvl+1] {
+	if oldLeaf.path[currLvl] != newLeaf.path[currLvl] {
+		// reached divergence in next level
+		// if newLeaf.path[currLvl+1] {
+		if newLeaf.path[currLvl] {
+			n.l = oldLeaf
+			n.r = newLeaf
+		} else {
+			n.l = newLeaf
+			n.r = oldLeaf
+		}
+		return nil
+	}
+	// no divergence yet, continue going down
+	if newLeaf.path[currLvl] {
+		// right
+		n.r = &node{}
+		if err := n.r.downUntilDivergence(p, currLvl+1, oldLeaf, newLeaf); err != nil {
+			return err
+		}
+	} else {
+		// left
+		n.l = &node{}
+		if err := n.l.downUntilDivergence(p, currLvl+1, oldLeaf, newLeaf); err != nil {
+			return err
+		}
+	}
+
+	return nil
+}
+
+func (n *node) computeHashes() ([]kv, error) {
+	return nil, nil
+}