The surface of a propagating crack is shown to be morphologically unstable
because of the nonhydrostatic stresses near the surface (Asaro-Tiller-Grinf
eld instability). We find numerically that die energy of a wavy crack becom
es smaller than the energy of a straight crack if the crack length exceeds
a critical length L-c =5.18L(G) (L-G is the Griffith length). We analyze th
e dynamic evolution of this instability, governed by surface diffusion or c
ondensation and evaporation. It turns out that the curvature of the crack s
urface becomes divergent near the crack tips. This implies that the widely
used condition of the disappearance of K-II, the stress intensity factor of
the sliding mode, is replaced by the more general requirement of matching
chemical potentials of the crack surfaces at the tips. The results are gene
ralized to situations of different external loading.