Other ZFS, mdconfig, GELI and getting my head around

I want to create an encrypted virtual disk but I am struggling with understanding some basic concepts. Please correct me if any of these statements are wrong:

1. I need a block device that GELI can encrypt and mount in the system
2. Once the device is mounted I can format it and create a filesystem on it
3. The block device can be provided either with mdconfig or as ZFS volume

And now some questions:

a. What would be the difference between creating a file-based store for use with mdconfig and a native ZFS volume, assuming the system is already installed on ZFS?
b. Is it possible to create an encrypted virtual disk that will grow with the data copied to the disk e.g. ZFS allows to create a sparse volume - is it a good option, any alternatives?
 
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