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PlanetScale is a MySQL serverless platform which simply sells Vitess, a database clustering system for the horizontal scaling of MySQL. They didn't write their own database - possibly contributed to it, but they didn't write it. From the Vitess documentation:
Let's briefly talk about what ACID Isolation is. There are four levels to it (according to the SQL-92 standards), including serialisability, read committed, read uncommitted, and repeatable reads. With that being said, there are more levels of isolation, such as Snapshot isolation which isn't a SQL standard although used by several databases such as Firebase or MongoDB. If you're further interested in this, I recommend reading this post. To keep it brief, I'm not going to go over what ever level of isolation does/means, but if you'd like to read more about that do check out this page from the MySQL Documentation.
ACID isolation refers to the database transactions being ACIDic, which is important as they guarantee that operations behave the way developers expect them to. I'm unsure on what they mean when they say "Guaranteeing ACID Isolation is very contentious and has high costs", but if they mean that guaranteeing ACID Isolation has high costs for any product, they're wrong. Several distributed ACID-compliant databases have the highest level of isolation (serialisable transactions) whilst still being performant with fast read/write speeds. In the context of Vitess though, they're not wrong as across multiple shards transactions cannot meet any level of isolation.
Let's briefly talk about what ACID Isolation is. There are four levels to it (according to the SQL-92 standards), including serialisability, read committed, read uncommitted, and repeatable reads. With that being said, there are more levels of isolation, such as Snapshot isolation which isn't a SQL standard although used by several databases such as Firebase or MongoDB. If you're further interested in this, I recommend reading this post. To keep it brief, I'm not going to go over what ever level of isolation does/means, but if you'd like to read more about that do check out this page from the MySQL Documentation.