Business Transparency of Blockchain Trading Platforms: Opportunities and Challenges

In the field of decentralized finance (DeFi), the transparency of transactions has always been a topic of great concern. Traditionally, we can see the occurrence of each transaction on the Blockchain, but we know very little about the source and background of the transactions. This situation is changing, as some innovative platforms begin to move the "business ledger" onto the chain, making growth attribution traceable and verifiable.

The Practice of On-Chain Business Ledger

A perpetual contract trading platform operates on a self-developed Blockchain network and chooses to make key business data and trading logic public on the chain. This practice transforms the exchange's "backend" into a traceable growth map, allowing us to clearly see the driving factors behind each transaction.

The platform mainly realizes on-chain growth attribution from two dimensions:

1. Order Level (Builder): Record the order tool information in the order parameters for easy comparison of transactions, fees, and retention by tool.

2. Account Level (Referral): Bind referrer information in the user account to achieve automatic on-chain settlement of discounts and commissions.

This design closely links transactions with growth data, forming a complete on-chain ecosystem.

The Impact of On-Chain Attribution

Attributing growth from off-chain to on-chain has had a profound impact on the entire ecosystem:

1. Rule formulation: Transitioning from variable interpretation to fixed rules at the protocol layer enhances neutrality and predictability.

2. Settlement process: It has achieved a transition from manual approval to automatic clearing, improving efficiency and fairness.

3. Data Transparency: Shifting from relying on promotional reports to independently verifiable public ledgers enhances trust.

These changes bring new opportunities for all participants in the ecosystem:

• Developers and promoters can obtain rewards that match their contributions more directly.
• Project operations and governance decisions can be based on more objective data.
• Ordinary traders can more easily identify effective tools and real information.

The Challenge of Transparency

However, extreme transparency also brings a series of new challenges:

1. Strategy leakage: The profit models of professional traders and developers may be easily replicated, leading to the failure of the strategy.

2. Market manipulation risk: The intentions of large traders become easier to predict, increasing the possibility of being targeted for attacks.

3. Privacy Issues: Users' transaction history and financial status are fully public, which may pose security risks.

Future Outlook

To address these challenges, the industry is exploring verifiable privacy technologies represented by zero-knowledge proofs (ZKP). These technologies aim to prove the existence of specific contributions and complete on-chain settlements without disclosing the identity of the traders or the details of their strategies.

Despite the challenges of costs, delays, and preventing Sybil attacks that this technological path still faces, it points the way towards achieving the ideal state of "verifiable and privacy-preserving."

Conclusion

The practice of on-chain business ledgers not only enhances the transparency of financial transactions but also represents a reconstruction of traditional business models. It places the complete closed loop of "customer acquisition - transaction - profit sharing" on the blockchain, laying the foundation for building a fairer incentive mechanism.

The key challenge in the future lies in how to better protect personal strategies and privacy while maintaining verifiability. Only when "traceable ledgers" and "anonymity rights" achieve a harmonious coexistence can the growth mechanism of the Blockchain ecosystem truly complete the thorough migration from off-chain to on-chain.