Side-chain, Rollup and Cross Chain

Derivative trading needs higher performance than spot trading. There are two potential solutions: Side-chain and Rollup. Side-chain is the mature solution, having several choices with mainstream consensus like BSC, Polygon, xDai. Rollup has two options, Optimistic-Rollup and ZK-Rollup.

Comparison:

	Side-Chain	Optimistic-Rollup	ZK-Rollup
EVM compatiability	Excellent	Excellent	Mediocre
withdrawl speed	1 block confirmation	1~2 week	1~10 minutes
decentralization/safety	Rely on consensus	Excellent	Excellent

Derify protocol choose to start from Side Chains and eventually implement ZK-Rollup.

In phase 1, Derify protocol will focus on implementing key models, features and reliability. We choose BSC, Polygon and xDai, which has decent consensus, as well as fulfilling the needs of low cost, high performance and safe for on-chain assets.

In phase 2, Derify protocol plans to implement complete ZK-Rollup solutions. We will implement all features based on ZK-Rollup, achieve self-reliance without side chains and fully decentralized.

In the future, we will launch Derify protocol on mainstream chains like Polkadot, Solana and Near, we will also support cross chain transactions.