About BUIDL and zkSync
At present, our testnet is running on Rinkeby smoothly. However, it’s still affected by Rinkeby’s blocking and performance issues. Phezzan Protocol is ready to be deployed to zkSync to solve performance problems. When choosing a chain, TPS and stability are some of the important indicators we consider.
As project builders, why do we choose to build an on-chain and decentralized exchange when there already exists some very well-known exchanges like FTX which is off chain and centralized? It does not seem to affect the user experience.
We think the benefits of being on-chain are:
- Self-custody of funds. No matter what happens, users can always withdraw all their funds. There will be no centralized team to embezzle users’ money to invest in some risky assets such as $aUST, resulting in loss of funds and affecting the safety of users’ funds.
- Data will also be on-chain. All the trades through a DEX will have data on-chain to verify. Anyone can query this data and the code is always open source for anyone to review. On the contrary, a user just have to trust that a centralized exchange’s team will not do evil.
- Fair game, everyone has the same information and the same tool. The only difference is the size of the funds.
About zkRollups
zkRollup is a scaling solution that solves the blockchain trilemma. On-chain computation is very expensive, since all nodes need to compute it. If one can move the computation off-chain, while guaranteeing the computation result is correct, then the transaction cost will be way lower. The hard part is how to guarantee the computation result is correct. zkRollups computes a batch of transactions, and posts the result to the base chain in a highly compressed form. Each batch also includes a zkProof, which proves the computation result is correct. What’s really cool about zkProof is, no matter how complex the computation is, it is always very quick to verify the correctness of the computation. So on chain verification will be very cheap.
So zkSync is our primary choice.
However, some people will disagree with zkRollups putting computation off-chain. We think that the product is built for the user and the user needs a high performing product. Both the upper layer application and the underlying infrastructure need to serve this goal. With the current limitations of blockchains, core data on-chain and computing off-chain will be a better development model.
Whether it is web3 or web2, availability has always been and will forever be a basic requirement.
