MES Protocol adopts the Validium model to handle and store transaction data off-chain, leaving a hash on-chain, to achieve high scalability and stability across multiple rollups.
MES team is currently the sole operator of the DEX, which is responsible for storing the database of balances. There is a roadmap to further decentralize MES, and our team would consider and implement the best solution, including but not limited to below-listed solutions, to ensure the database remains secure and decentralized.
Solution #1: Store it with trusted parties — DAC
One straightforward way is to have copies of the database stored with someone else, preferably trusted parties, this group of trusted parties is joined together to form a DAC (Data Availability Committee).
The DAC does the following:
1) It stores the database off-chain in a private and secure way and makes it available when needed.
2) Before each time the Merkle root is updated on-chain, it is responsible for checking whether the balance state is valid and if so signing it.
Backup Solution: MVR (Minimally Viable Rollback)
Under the worst-case scenario that may happen, what if both operator and DAC are down and someone intends to publish a new state without publishing the data?
MVR carries out a rollback to resume the previous state of history where data is still available.
Solution #2: Store it yourself — Power User
Users can choose to become Power Users (PU), whose funds are always in full custody. The power user will be keeping part of the Merkle root (ie. only the relevant data), like a partial server, which proves their ownership of the funds and hence can sign and activate withdrawal in case of emergency.
For users who do not want to become power users, they also have the option to authorize a willing power user to secure their funds on their behalf, so they are no longer restricted to only trusting the DAC.
This approach is actually a better version of Validium as it enjoys the benefits brought by moving data off-chain but at the same time removes trust assumptions.
Solution #3: Users’ choice — Volition
Volition is a mixed on-chain/off-chain solution, it basically gives users the ability to choose where they want their data to be stored.
For instance, as traders on MES, they will be able to perform trades throughout the day on an “off-chain” mode and by the end of the day switch it back to “on-chain” mode so data of funds can be stored back on chain in a secure manner.
We expect there will be more DA solutions available to the market when rollups become more popular in the future.