arche
738 posts

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most people don't know this. privacy was built into Sui on day one and we had it working
But we ripped it out before mainnet
because the regulatory climate in 2022 and 2023 was uncertain enough that we made the hard call to pull it before launch
that was the right decision at the time. but the problem it was designed to solve never went away
consumers are not accustomed to sharing their dirty laundry or the history of everything they've ever done with the world just by receiving money or sending money
public infrastructure has a responsibility to let users keep their transactions private
imagine doing disbursement of payroll to accounts on chain where everyone can see who's in what. over time with analysis, you can find out who the CEO is all the way to who the engineer is
no company will accept that. no consumer will accept that either
you cannot have large scale consumer adoption in crypto without privacy. that has always been true
the question was never whether privacy matters. the question was how do you build it so that it actually gets adopted
look at Zcash. most transactions on Zcash aren't even private. because it cost more money and it is more complicated
privacy that costs extra is privacy that nobody uses
on Sui, privacy is not going to cost you more. making a transaction private on Sui does not add a single cent to the cost. and that changes everything about who adopts it and how fast
but the bigger shift is this
privacy today is something given to you by centralized entities. your bank, your brokerage, your payment app.
you trust them to keep your secrets. that trust is the product
privacy on @SuiNetwork will be given to you by math and cryptography
rather than trusting centralized entities to keep your secrets secret, you trust the math and the open source code
that is a fundamentally different guarantee
And when it launches, it will work on exchanges on day one. it will work with custodial and non-custodial wallets on day one
and the only people who can see your transactions are those who have the legal right to see them
plus, all traditional businesses expect privacy by default. they already operate in a world where financial transactions are private
what they need is public infrastructure that gives them the same guarantee without a private chain
companies that want to issue bonds, stocks, or RWAs on chain need issuer controlled visibility. they need to decide that only sender, receiver, and maybe a regulator can see the details
when privacy goes live, Sui will give them that at the protocol level
this is why i believe Sui will onboard more traditional businesses than any other chain. everything a traditional business expects from financial infrastructure already exists on Sui at the base layer
and the regulatory environment has caught up to where we were building years ago. so now we can bring it back
soon payments on Sui will be free, private, and compliant. the way it was always meant to be
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arche retweetledi

There have recently been some discussions on the ongoing role of L2s in the Ethereum ecosystem, especially in the face of two facts:
* L2s' progress to stage 2 (and, secondarily, on interop) has been far slower and more difficult than originally expected
* L1 itself is scaling, fees are very low, and gaslimits are projected to increase greatly in 2026
Both of these facts, for their own separate reasons, mean that the original vision of L2s and their role in Ethereum no longer makes sense, and we need a new path.
First, let us recap the original vision. Ethereum needs to scale. The definition of "Ethereum scaling" is the existence of large quantities of block space that is backed by the full faith and credit of Ethereum - that is, block space where, if you do things (including with ETH) inside that block space, your activities are guaranteed to be valid, uncensored, unreverted, untouched, as long as Ethereum itself functions. If you create a 10000 TPS EVM where its connection to L1 is mediated by a multisig bridge, then you are not scaling Ethereum.
This vision no longer makes sense. L1 does not need L2s to be "branded shards", because L1 is itself scaling. And L2s are not able or willing to satisfy the properties that a true "branded shard" would require. I've even seen at least one explicitly saying that they may never want to go beyond stage 1, not just for technical reasons around ZK-EVM safety, but also because their customers' regulatory needs require them to have ultimate control. This may be doing the right thing for your customers. But it should be obvious that if you are doing this, then you are not "scaling Ethereum" in the sense meant by the rollup-centric roadmap. But that's fine! it's fine because Ethereum itself is now scaling directly on L1, with large planned increases to its gas limit this year and the years ahead.
We should stop thinking about L2s as literally being "branded shards" of Ethereum, with the social status and responsibilities that this entails. Instead, we can think of L2s as being a full spectrum, which includes both chains backed by the full faith and credit of Ethereum with various unique properties (eg. not just EVM), as well as a whole array of options at different levels of connection to Ethereum, that each person (or bot) is free to care about or not care about depending on their needs.
What would I do today if I were an L2?
* Identify a value add other than "scaling". Examples: (i) non-EVM specialized features/VMs around privacy, (ii) efficiency specialized around a particular application, (iii) truly extreme levels of scaling that even a greatly expanded L1 will not do, (iv) a totally different design for non-financial applications, eg. social, identity, AI, (v) ultra-low-latency and other sequencing properties, (vi) maybe built-in oracles or decentralized dispute resolution or other "non-computationally-verifiable" features
* Be stage 1 at the minimum (otherwise you really are just a separate L1 with a bridge, and you should just call yourself that) if you're doing things with ETH or other ethereum-issued assets
* Support maximum interoperability with Ethereum, though this will differ for each one (eg. what if you're not EVM, or even not financial?)
From Ethereum's side, over the past few months I've become more convinced of the value of the native rollup precompile, particuarly once we have enshrined ZK-EVM proofs that we need anyway to scale L1. This is a precompile that verifies a ZK-EVM proof, and it's "part of Ethereum", so (i) it auto-upgrades along with Ethereum, and (ii) if the precompile has a bug, Ethereum will hard-fork to fix the bug.
The native rollup precompile would make full, security-council-free, EVM verification accessible. We should spend much more time working out how to design it in such a way that if your L2 is "EVM plus other stuff", then the native rollup precompile would verify the EVM, and you only have to bring your own prover for the "other stuff" (eg. Stylus). This might involve a canonical way of exposing a lookup table between contract call inputs and outputs, and letting you provide your own values to the lookup table (that you would prove separately).
This would make it easy to have safe, strong, trustless interoperability with Ethereum. It also enables synchronous composability (see: ethresear.ch/t/combining-pr… and ethresear.ch/t/synchronous-… ). And from there, it's each L2's choice exactly what they want to build. Don't just "extend L1", figure out something new to add.
This of course means that some will add things that are trust-dependent, or backdoored, or otherwise insecure; this is unavoidable in a permissionless ecosystem where developers have freedom. Our job should make to make it clear to users what guarantees they have, and to build up the strongest Ethereum that we can.
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Sui@SuiNetwork
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arche retweetledi

arche retweetledi

the start of a beautiful friendship ( • -) •
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follow @doodles for updates.

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