Technology

Story: Uniswap (UNI) Arbitrum Expected to Bring in Dramatic Improvement in Scalability and Privacy

By Steven Anderson

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The autonomous proposal "Reduce the UNI proposal submission threshold to 2.5M" has reached the required threshold and has moved to a formal on-chain vote.

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Following this, Hayden Adams recently expressed:  “Reducing the UNI proposal submission threshold to 2.

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In response community members were like:  Populism over Oligarchy.

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For clarity, populism is a political approach that strives to appeal to ordinary people who feel that their concerns are disregarded by established elite groups.

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Oligarchy, government by the few, especially despotic power exercised by a small and privileged group for corrupt or selfish purposes.

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Another important topic in discussion in the Uniswap community is Arbitrum. 

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Uniswap Labs expressed:  “In response to the community vote, Uniswap v3 has been deployed to arbitrum mainnet.

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Arbitrum is currently in whitelist only mode. Once it opens to all users, Uniswap v3 will work out of the gate with no additional work required.

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Some users were like:  No additional work required means we just go and swap tokens as usual, or do we need to bridge tokens to Arbitrum first?

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For clarity, “Arbitrum is a cryptocurrency system, which supports smart contracts without the limitations of scalability and privacy of systems. 

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For instance, Ethereum permits the parties to create smart contracts using the code to specify the behavior of a virtual machine (VM) which will implement the contract’s…

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Arbitrum makes use of mechanism design to incentivize parties to agree off-chain on what a VM would do.

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When a party tries to lie about VM's behavior, the verifier or miner will identify and penalize the dishonest party using highly-efficient challenge-based protocol which will…

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Moving the verification of VMs' behavior off-chain in this way provides dramatic improvements in scalability and privacy.”

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