What is Taiko?

What is Taiko?

Taiko addresses Ethereum's scalability issues by providing a low-cost solution that adheres to the blockchain's foundational principles: censorship resistance, permissionless access, and strong security. It uses a fully open-source ZK-Rollup architecture that mimics Ethereum, doing away with centralized sequencers for a decentralized method of processing transactions. This change significantly reduces fees while upholding Ethereum's core standards.

At the core of Taiko's innovation is "based sequencing." This method positions Ethereum L1 validators as responsible for ordering transactions, enhancing security and maintaining impartiality through the use of Ethereum's existing infrastructure. "Based sequencing" represents a significant advance from traditional rollup models, ensuring that Taiko stays true to Ethereum's vision of a decentralized and secure system.

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How Does Based Sequencing Work

Taiko's Based Contestable Rollup (BCR) architecture pioneers "based sequencing," empowering Ethereum L1 validators to sequence transactions, sidelining centralized sequencers. This approach not only aligns with Ethereum's decentralization ethos but also leverages its existing validators for transaction sequencing, optimizing both security and efficiency.

In the BCR framework, contestation plays a critical role. Upon block proposal, if inaccuracies are spotted, they can be contested by posting a bond during a cooldown period, without providing an alternate proof. This system ensures blockchain integrity through a structured process of proofs, bonds, and contestations, enhancing reliability.

BCR supports a multi-proof system, allowing for diverse proof methodologies. This design is adaptable, accommodating technological advancements without requiring protocol overhauls. It lowers entry barriers for network validation, promoting a decentralized, secure, and community-centric model.

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Taiko Katla Testnet

Taiko's Katla Testnet, the final stage before transitioning to the mainnet, formally implemented the Based Contestable Rollup (BCR) design and an enhanced bridge interface facilitating NFT bridging into the protocol. This iteration retains full compatibility with existing applications through its type-1 ZK-EVM architecture, mirroring the Jólnir testnet's architecture. 

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Taiko Governance

Taiko's governance design is engineered for its decentralized, open-source ethos, closely aligning with Ethereum's operational principles. At its core, the Taiko protocol, embedded in Ethereum smart contracts, lays the foundation for its scalable solutions. Governance is distributed across key entities, each playing a nuanced role in the ecosystem's evolution and security:

• Taiko Labs: Focuses on R&D for protocol enhancements.
• Taiko Treasury: Manages finances sourced from protocol-generated income.
• Taiko DAO: Holds TKO holders responsible for major protocol decisions.
• Taiko Foundation: Guides the protocol's development and community engagement.
• Taiko Security Council: Addresses emergency protocol actions to ensure system integrity.
• Taiko Community: A broad network of users and developers actively participating and contributing to the ecosystem.

This governance model ensures that Taiko remains resilient, community-driven, and adaptable to as the layer 2 space continues to evolve.

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Closing Thoughts

Taiko stands out in addressing Ethereum's scalability, pioneering the Based Contestable Rollup (BCR) and introducing "based sequencing" to decentralize transaction processing. This innovative approach, utilizing Ethereum L1 validators, enhances security and efficiency, marking a significant shift from traditional rollup methods. With the Katla Testnet preparing for the mainnet transition and a strong governance model ensuring decentralized evolution, Taiko is setting a new standard for Ethereum scaling solutions.