Coin overview
TAIKO
Ended--
Last price (USDT)
151.90K
24h total (USDT)
233.88K
Total vol (USDT)
2024-05-23 09:00:00 ~ 2024-06-05 12:30:00
Trading time (UTC+0)
2024-06-06 04:00:00
Delivery time (UTC+0)
Resources
Introduction
Taiko is first and foremost a community — global, inclusive, and open to everyone. Together, we’re scaling Ethereum for the masses.
Using Taiko as an Example to Explain the Preconfirmation Concept: How to Make Ethereum Transactions More Efficient?
Original Article Title: 「Preconfirmation (feat. Taiko): Make Ethereum Fast for the First Time!」 Original Article Author: Ingeun Kim : : FP This article starts from the limitations of the current L2 ecosystem and, through a specific analysis of projects like Taiko, demonstrates how the innovative concept of Preconfirmation optimizes the transaction confirmation process to improve user experience. It also reveals the challenges that the current Preconfirmation technology still needs to overcome in its development, including the dual challenge of technical refinement and ecosystem sustainability. Key Insights Taiko is a Layer2 network based on Based Rollup, aiming to achieve full interoperability with Ethereum while advancing the decentralization of the Sequencer. To address the latency issue in the Rollup mechanism regarding final transaction confirmation, Taiko introduces the concept of "Preconfirmation." By proactively assuring users of transaction inclusion and order, Preconfirmation effectively alleviates the inefficiencies in the transaction confirmation process of Rollup, significantly enhancing user experience. In the Based Preconfirmation model, L1 validators provide users with a guarantee of transaction outcomes. Preconfirmers need to stake collateral and adhere to a Slashing mechanism to ensure system reliability. L2 projects like Taiko establish reliable transaction finality by introducing the Preconfirmation mechanism, creating a more convenient operational environment for services like DeFi that require real-time confirmation. Currently, multiple projects are involved in the development of the Preconfirmation ecosystem. This technological advancement is expected to enhance the efficiency of the Ethereum L2 ecosystem, strengthen interoperability with Ethereum, and drive further expansion of the entire ecosystem. Taiko is steadily progressing toward its ultimate goal as an Ethereum Layer2 solution. To achieve this goal, Taiko prioritizes full interoperability with Ethereum, a decentralized Sequencer, and support for developers. It is worth noting that through the architecture of Based Rollup, Taiko has achieved full interoperability with Ethereum while allowing anyone to participate as a Sequencer, thus decentralizing the Sequencer. However, despite the advantages of the Based Rollup model, it still faces some inherent inefficiencies in its structure. This article will take Taiko as an example to delve into the concept of Preconfirmation. As a key part of the Layer2 technology stack, Preconfirmation is an important step in the further development of Rollup. Current L2 Efficiency Issue With the expansion of the L2 ecosystem, numerous projects have emerged, bringing many new concepts and technology stacks. However, despite these significant advances, L2 still faces some efficiency issues that need to be urgently addressed, especially in key areas affecting user experience, making efficiency enhancement particularly important. Rollup's Inherent Limitation: Inefficient Transaction Finality Confirmation Process L2 has achieved scalability through Rollup, relying on the data availability and transaction processing of L1 platforms such as Ethereum. However, Rollup has an inherent limitation: although it can independently perform transaction ordering and execution, all other processes still need to wait for L1's final confirmation. This architecture ensures security and data immutability by directly leveraging L1's block generation and data availability. However, relying on L1 for final confirmation results in slow transaction processing speed, limited real-time confirmation capabilities, and from a user's perspective, it is difficult to meet real-time needs. Furthermore, many L2 sequencers and validator nodes are currently centralized. This centralization leads to inefficiencies, such as longer transaction confirmation times and potential operational interruptions, affecting the transaction processing efficiency of some Rollups, causing confirmation delays. Introduction of the Preconfirmation Concept The introduction of the Preconfirmation concept aims to address the inefficiency of transaction final confirmation in the L2 network. Preconfirmation allows users to receive transaction confirmations more quickly, thus alleviating the common delays and inefficiencies in the Rollup mechanism. What Issues Does Preconfirmation Aim to Solve? In the Rollup mechanism, there is always an efficiency issue with the confirmation process after users submit transactions to L2. As centralized L2 sequencers cannot accurately guarantee when transactions will be confirmed on L1, users are often uncertain about the order and outcome of transactions. For example, users may need to wait a long time for transactions to be included on L1, and if the transaction order is incorrect or the result is not ideal, it may lead to financial losses from executed transactions. In a highly volatile market environment, the issues of delay and transaction reordering become more prominent as users rely on arbitrage and DeFi services. In these circumstances, transaction delays or reordering can directly result in missed opportunities. Even regular users conducting transactions may lack confidence in the finality and order of transactions on L1, leading to doubts about the reliability and usability of the blockchain. Therefore, the design goal of preconfirmation is to address these shortcomings, particularly providing a more convenient and reliable transaction experience for users most impacted by Rollup inefficiencies. How does Preconfirmation address these issues? Preconfirmation resolves these issues by providing users with transaction inclusivity, ordering, and execution guarantees. It offers users 'soft confirms' through a centralized L2 sequencer, issuing preconfirmation certificates to ensure transactions will ultimately be included on L1. The primary advantage of soft confirms is the enhancement of user experience. Users receive a confirmation certificate immediately after submitting a transaction, ensuring the transaction is included on L1 in the expected order, reducing uncertainties, especially in fast-paced trades like arbitrage. Furthermore, preconfirmation enhances user trust in the L2 system. As user confidence in secure transaction processing grows, overall L2 ecosystem adoption rates increase. Thus, preconfirmation plays a crucial role in improving Rollup efficiency and convenience. Is Preconfirmation the ultimate solution? While soft confirms from a centralized sequencer can enhance user experience through anticipated ordering and outcomes, it relies on trust in the sequencer. Without legal or technical enforcement, users can only rely on the sequencer's reliability. This reliance introduces a potential risk where transactions may not be included in the correct order or may not be included on L1 at all, failing to provide the stable assurance users expect. Interpreting the Concept and Practice of Based Preconfirmation Using Taiko as an Example Taiko has devoted significant effort to the implementation of preconfirmation as this approach aligns closely with the core features of Based Rollup. If Based Preconfirmation can be successfully integrated into Taiko's framework, it can significantly reduce transaction finality delays and enhance user experience. Moreover, this improvement will activate various previously restricted services, enabling them to operate efficiently on the Taiko network. Before delving into a deeper understanding of Based Preconfirmation, it is necessary to first review some key features of Taiko to better comprehend the applicability and advantages of this approach. Taiko Case Study Taiko has fully demonstrated the core features of Based Rollup. It has not only achieved full interoperability with the Ethereum infrastructure but has also been committed to aligning with Ethereum's security mechanisms. Taiko adopts the architecture of Based Rollup, which means it does not rely on a centralized sequencer but rather relies on Ethereum's validators acting as sequencers, responsible for transaction and block ordering. In other words, Taiko's sequencers are of the same type as Ethereum's block proposers. This design gives them special responsibilities and incentive mechanisms, such as maximizing MEV rewards and other benefits of sequencer identity. Therefore, when issues arise in Taiko's L2 sequencing process, these sequencers naturally assume corresponding responsibilities due to their vested interests in the Ethereum ecosystem. This mechanism sets Taiko apart from other Ethereum L2 projects in terms of operational accountability. Furthermore, it is noteworthy that Taiko's Based Rollup model is designed as a "Based Contestable Rollup (BCR)," a structure aimed at incentivizing healthy competition. Through its open and permissionless design, Taiko ensures the decentralization of the system, allowing anyone to participate, thereby making the system more fair and transparent. Based Rollup-Based Preconfirmation So, what does the preconfirmation model designed specifically for Based Rollup look like? The answer is "Based Preconfirmation." This model aims to replace traditional soft confirmation mechanisms with direct verifications on L1 through preconfirmation. Based Preconfirmation provides a system where some L1 validators voluntarily participate and offer preconfirmation services. As sequencers, these validators provide users with verifiable predictions of Rollup transaction outcomes. This approach provides users with a trustworthy guarantee of transaction inclusion and ordering, and these guarantees are based directly on L1, enhancing the trustworthiness and reliability of the Rollup process. Justin Drake first introduced the concept of Based Preconfirmation and proposed a specific role called "Preconfer," which can provide users with signature guarantees, clarifying transaction order and execution status. To ensure the reliability of commitments, each preconfirmer must stake a certain amount of collateral. If they fail to fulfill their commitments regarding transaction order or execution status, they will face penalties under the Slashing mechanism, resulting in a partial or complete loss of collateral. The Slashing mechanism has been widely applied in Ethereum's PoS staking to effectively deter malicious behavior. This mechanism not only strengthens the responsibilities of validators but also establishes a certain level of trust between users and validators. Two scenarios lead to a validator being subject to Slashing penalties: 1. Liveness Faults: If a validator fails, for any reason, to include a user's pre-confirmation transaction on-chain, a liveness fault occurs. Since liveness faults are not always intentional, the penalties are relatively mild. Such faults may stem from network issues or interruptions in the L1 or L2 blockchain, rendering transactions unable to be correctly included on-chain. To protect honest validators from undue penalties, the penalty amount for liveness faults is usually determined through user-validator negotiation. 2. Safety Faults: If a pre-confirmed transaction is included on-chain but the outcome does not align with the user's initial request, a safety fault occurs. This inconsistency is entirely the validator's responsibility, hence safety fault penalties are typically more severe. The validator's stake will be fully confiscated, regardless of whether the issue was intentional. To become a validator in the Based Preconfirmation model, a node (usually an L1 block proposer) must accept these Slashing mechanism conditions and stake the required collateral. Once approved, the validator can then provide services to users and generate income by charging service fees. This fee model offers significant convenience to users, enabling them to bypass the inherent delay in Rollup transaction finality. For instance, after a user submits a pre-confirmation transaction through their personal wallet, they can promptly receive a confirmation proof from the validator. By participating as validators in Based Preconfirmation, individuals not only earn additional income through fee collection but also help optimize the transaction confirmation process in Rollup. This model not only enhances user experience but also provides a reliable and efficient transaction finality solution for the entire L2 ecosystem, further enhancing its attractiveness and utility. Why are users willing to pay fees for pre-confirmation? This is closely related to the core purpose of pre-confirmation. Users are willing to pay fees for pre-confirmation because it directly addresses the inefficiencies in the transaction finalization process in Rollup, bringing significant convenience to users. For example, when a user submits a preconfirmation transaction on an L2 blockchain through a personal wallet, a standard transaction may require final confirmation, while the user requesting preconfirmation can immediately obtain assurance from the prevalidator, completing the transaction without delay. At this point, the user may even see a green checkmark in the wallet interface, clearly indicating a successful transaction. Take DeFi services as another example. When a user performs a token swap on an L2 DeFi platform, preconfirmation can provide additional security for the related transaction. Typically, the transaction's quoted exchange rate or fee may be inconsistent with the actual completed transaction result due to delays. However, through preconfirmation, users can enjoy a fast and efficient transaction finalization process, reducing the discrepancy between expected conditions and actual results, thereby obtaining a more reliable service experience. These use cases not only allow developers to provide more accurate services but also bring a smoother and more convenient user experience. This dynamic further supports the expansion of the L2 ecosystem while also contributing to the growth of the broader L1 ecosystem. Additionally, for the Sequencer of Based Rollup, the additional revenue brought by preconfirmation provides a significant profitable model. This design effectively addresses some of the traditional weaknesses of Based Rollup, making it an ideal choice for the Sequencer, combining reliability and attractiveness. What are the Challenges of Based Preconfirmation? Based Preconfirmation is still a widely studied area in Layer2 projects, represented by Taiko-driven Rollups. Although this mechanism offers a clear solution to enhance L2 performance and scalability while maintaining decentralization, it still faces some challenges that need to be addressed for wider adoption in practical applications. First, when submitting transactions to the blockchain in Preconfer, users may not have an absolute guarantee of transaction inclusivity. Although prevalidators provide collateral to guarantee transactions, this mechanism still does not completely solve the problem of transactions not being included due to external interruptions. Especially when the transaction value exceeds the prevalidator's collateral amount, prevalidators may abuse their authority, selectively including or excluding certain transactions, posing potential risks. Another significant challenge is the profit model based on preconfirmation. The primary source of income for prevalidators is the preconfirmation fees paid by users. However, if the number of prevalidators is insufficient or participation is low, it may lead to market centralization with monopolistic tendencies. In such cases, preconfirmation fees may be artificially raised, increasing the cost for users to conduct fast and efficient transactions, thus threatening the healthy development of the preconfirmation ecosystem. It is worth noting that the concept of Based Preconfirmation is relatively new, having been proposed only about a year ago. To make it a "key tool" for maximizing Rollup-driven L2 scalability solutions' speed and efficiency, it will still take some time for practical implementation and refinement. However, with Rollup firmly established as a core component of Ethereum scalability, further exploration of preconfirmation to enhance performance marks an important step in L2 technology development. In particular, Taiko has made significant progress in driving the implementation of Based Preconfirmation. At the same time, Taiko has collaborated with various partners such as Taiko Gwyneth, Nethermind, Chainbound, Limechain, Primev, and Espresso to jointly explore and develop applications for Based Preconfirmation. These collaborations aim to further advance the L2 ecosystem, with more details on this topic to be discussed in subsequent chapters. Preconfirmation Ecosystem Landscape: Process Diagram Interpretation and Project Exploration In this chapter, we will explore which projects are actively researching and promoting the development of preconfirmation technology in the Rollup-driven L2 ecosystem. As the ecosystem is still in its early stages of development, we will use a process diagram to more intuitively demonstrate and understand the specific preconfirmation process. Preconfirmation Process Diagram Preconfirmation is a complex process that requires close collaboration between L1 and L2, involving multiple roles, each with specific responsibilities. To facilitate a more intuitive understanding of this process, I have created a process diagram for a brief overview. It is important to note that this diagram aims to help explain the overall logic and therefore does not strictly differentiate between the distinct characteristics of Rollup and Based Rollup but focuses on the generic process at a fundamental level. Before delving into the specific steps of the process diagram, let us first understand the various roles involved in the preconfirmation process and their functions: User: An individual user of the L1 or L2 network responsible for creating and submitting transactions. If a user wishes to receive preconfirmation assurance, they will complete the transaction and send it to the preconferrer. Preconferrer: In the preconfirmation process, the preconferrer is responsible for reviewing and validating transactions' validity, providing preconfirmation assurance to users. Through preconfirmation, users can quickly obtain transaction status assurance before final settlement. If nodes do not have preconfirmation eligibility, they act as Non-Preconf Actors, primarily handling regular transactions rather than preconfirmed transactions, similar to standard validation nodes. L1 Validator: Responsible for providing final validation of transactions and blocks on the L1 network. Once the Preconfirmers submit transaction data, the L1 Validator verifies it and records the final data on the L1 blockchain, ensuring transaction integrity and compliance with consensus rules. Preconfirmation Challenge Manager: When there is a dispute or issue during the preconfirmation process, this role is responsible for investigating the problem and taking appropriate action to resolve the dispute. This role plays a crucial role in maintaining the fairness and reliability of the preconfirmation process. Now, let's walk through the preconfirmation process in sequence as outlined in the process diagram: 1. The user sends a transaction request to a Preconfirmer within the preconfirmation participants to initiate the preconfirmation process. 2. The Preconfirmer reviews the transaction and sends a preconfirmation receipt, committing to the user that the transaction will be included in an L1 block, providing the user with initial finality assurance. 3. The Preconfirmer submits the transaction data that needs to be included in the L1 block to the L1 Validator. This data could be a single transaction or aggregated data processed by an L2 sequencer. 4. The L1 Validator validates the submitted transaction data or aggregated data and records it in the L1 block, ensuring its compliance with the blockchain's consensus rules. 5. After a period of time, the L1 block containing the transaction data or aggregated data achieves finality, and the transaction is formally confirmed. 6. Users can check the final outcome of the transaction through an L1 node and, if necessary, raise any potential preconfirmation disputes or challenges using relevant information. 7. If a transaction is found to have not been correctly included on L1 as promised, the Preconfirmer will face penalties from the Preconfirmation Challenge Manager, such as being slashed on their bond or having their staked assets frozen. Exploration of Related Projects The following will delve into the key projects actively involved in the preconfirmation ecosystem and their relevant roles in the process. While these projects hold specific roles in the process diagram, their actual responsibilities may vary slightly. Therefore, this overview aims to provide foundational understanding and serve as general guidance. To maintain clarity, the projects within each category are listed alphabetically. Preconfer Validators Astria: Astria aims to replace centralized sequencers with a decentralized sequencer network and support multiple Rollups sharing this network. This design provides Rollups with stronger censorship resistance, faster block finality, and seamless cross-Rollup interaction. To achieve fast block finality, Astria introduces a preconfirmation feature that enables Rollups to provide rapid transaction confirmation and enhance censorship resistance, significantly improving user experience. Bolt by Chainbound: Bolt is a preconfirmation protocol developed by Chainbound to offer Ethereum users near-instant transaction confirmation services. Its operation is based on a trustless participation mechanism and economic collateral, while remaining compatible with the existing MEV-Boost PBS pipeline, creating new revenue opportunities for proposers. Bolt's core functionality is L1 preconfirmation, providing immediate finality for basic transactions (such as transfers and approvals), thus enhancing user experience. By shifting the responsibility for including transactions from centralized block producers to proposers, Bolt enhances the system's censorship resistance. Additionally, the proposer collateral registration mechanism ensures a trustless environment, supporting various types of smart contracts flexibly. Espresso System: The Espresso System is a protocol dedicated to enhancing blockchain ecosystem interoperability. It adopts the HotShot Byzantine Fault Tolerance (BFT) consensus protocol to achieve transaction ordering and data fast finality across multiple chains. The Espresso System consists of the Espresso Network and Espresso Marketplace, which work together to provide rapid transaction finality and efficient interoperability, aiming to improve the scalability and security of the blockchain ecosystem. Ethgas: Ethgas is a market for transaction block space, with transaction matching managed by a centralized system, and on-chain processes executed through smart contracts. Ethgas provides two main functions: Inclusion Preconfirmation (ensuring transactions are included within a specified Gas limit) and Execution Preconfirmation (ensuring transactions reach a specific state or outcome). Ethgas focuses on protecting transaction privacy in block space transactions and is known for its neutral operational objectives. Luban: Luban focuses on developing a decentralized sequencing layer to connect transaction data between the Ethereum network and Rollups. This sequencing layer is designed as a decentralized system that separates proposal and execution roles. Luban's pre-confirmation feature significantly enhances transaction reliability by ensuring transaction executability before inclusion in the Ethereum network, while also helping optimize transaction fees, Gas prices, and MEV among other key factors. Primev: Primev is developing a proposer network integrated with MEV, combining pre-confirmation with MEV capabilities to build an efficient and reliable peer-to-peer network. This network records commitments to Ethereum transaction execution and incentivizes proposers through a reward or penalty mechanism. Primev allows MEV participants to set specific execution conditions for their transactions, while block producers and validators can commit to meeting these conditions, ensuring transaction pre-confirmation. Based on EIP-4337, Primev supports flexible pre-confirmation and Gas fee options, enhancing transaction processing efficiency and further optimizing user experience. Puffer Unifi: Puffer Unifi's Actively Validated Services (AVS) are built on EigenLayer and focus on addressing pre-confirmation challenges in the Ethereum ecosystem, particularly in the context of Based Rollup architecture. Puffer Unifi AVS leverages EigenLayer's re-staking feature to support the pre-confirmation participation mechanism, aiming to enhance the efficiency of transaction finality. As Based Rollup evolves, the demand for reliable pre-confirmation providers continues to grow, and Puffer Unifi AVS aims to meet this demand. Its ultimate vision is to achieve efficient pre-confirmation without altering the core protocol, thereby driving sustainable growth in the Ethereum ecosystem. Skate: Skate's pre-confirmation AVS relies on re-staked assets on EigenLayer to provide economic security guarantees for all cross-chain operations. This AVS validates the bundling data and information required for cross-chain transactions, which are then signed and prepared for execution by Skate's relayers. Through this process, Skate AVS achieves data pre-confirmation, significantly enhancing the reliability and efficiency of cross-chain transactions. Spire: Spire's Based Stack is a Based Ethereum Rollup framework designed to support the development of App Chains by developers. This framework allows App Chains to interact directly with Ethereum, customize their sequencing methods, support cross-chain exchanges, and optimize user experience through pre-confirmation. Based Stack supports various execution environments, ensures the sequencing revenue of App Chains, and maintains compatibility with traditional shared sequencers. As an open-source project, Based Stack provides developers with comprehensive tools and resources to build and manage App Chains, thereby promoting App Chain development and interoperability within the Ethereum ecosystem. Taiko Gwyneth: Taiko Gwyneth is a Rollup design being developed by Taiko, classified as a based Rollup architecture. Its goal is to achieve full interoperability with Ethereum while managing transaction sequencing directly on Ethereum. This design leverages Ethereum's security and decentralization features while providing high throughput and fast finality. Currently, Taiko is running a proposer mechanism to assist in block creation and exploring a preconfirmation mechanism to facilitate profitable block production within the community. This mechanism aims to optimize block time scheduling and data publishing efficiency. To achieve these goals, Taiko is deeply collaborating with projects like Nethermind and Gattaca. L1 Validator Chorus One: Chorus One is a project that provides validation services and infrastructure for blockchain networks, focusing on staking services across multiple protocols to enhance network stability and security. As an L1 validator, Chorus One's role is to validate transactions and generate blocks, thereby improving the overall network's reliability and efficiency. Recently, Chorus One has shown great interest in preconfirmation technology, even hosting related sessions during Devcon 2024. Research Nethermind: Nethermind is a project dedicated to developing Ethereum clients and tools, with a core focus on improving the performance and stability of blockchain networks. By introducing advanced optimization techniques, Nethermind actively drives the enhancement of Ethereum network transaction throughput. Regarding preconfirmation technology, Nethermind has been conducting in-depth research and has submitted a proposal to Taiko's grant program to expedite the deployment of preconfirmation on the Taiko mainnet. This proposal is based on Nethermind's RFP-001 project and will be implemented in two phases: the first phase will test preconfirmation functionality with a limited set of authorized participants, and the second phase plans to gradually expand the application scope of preconfirmation. Future Outlook Taiko and many Based Rollup Layer2 projects, whether adopting a Based Rollup architecture or not, are striving to optimize the inefficient transaction finality process in traditional Rollups. By introducing the concept of preconfirmation, these projects are building a transaction confirmation system that allows users to confirm transactions more quickly and reliably. Through this approach, these projects continue to explore how to enhance user experience and build user trust. Taiko has fully leveraged its positioning as a Based Rollup Layer 2 project, actively promoting the implementation of Based Preconfirmation mechanism, thereby achieving full interoperability and decentralization with Ethereum. Taiko has significantly improved transaction processing speed and reliability by providing users with fast and reliable transaction finality guarantee, thus significantly enhancing the user experience. However, multiple industry experts, including Arbitrum's Ed Felten, have pointed out that there is still a lack of mature middleware that can fully support preconfirmation. This indicates that the maturity of preconfirmation technology and the profit model of preconfirmers still face challenges that urgently need to be addressed. As described in this article, an increasing number of projects and participants are actively entering the preconfirmation field, each bringing their unique innovative solutions aimed at enhancing the performance and efficiency of the Ethereum Layer 2. This trend also aligns with the general rule that system concepts continue to improve after initial implementation. I believe this stage marks an important milestone in the evolution of L2 systems, and is an exciting positive development in the current L2 ecosystem. By improving user convenience through preconfirmation, it may not only have a profound impact on areas such as DeFi and gaming that prioritize speed and efficiency but also may reconnect Ethereum with its previously fragmented ecosystem by enhancing the performance of Ethereum Layer 2. This performance enhancement may enable more Type-1 Ethereum Layer 2 projects to achieve deep integration with Ethereum, unlocking the potential that was previously difficult to obtain due to speed limitations. These advancements are bound to have a profound impact on the entire Ethereum ecosystem. Preconfirmation remains a challenging and rugged path. However, pioneers like Taiko are stepping up, focusing on providing more convenience to users. Innovation has never been easy, but as a supporter of Ethereum and its Layer 2 ecosystem, I sincerely salute and encourage their efforts. This article is contributed content and does not represent the views of BlockBeats.
Exploring the Potential of Taiko: Daniel Wang’s Vision for a Decentralized and Unstoppable Ethereum Rollup
As the landscape of decentralized applications evolves, Taiko Labs is making waves with its innovative Ethereum-based rollup aimed at promoting freedom of expression. This technology emerges as a solution to the challenges of censorship and centralization faced by many blockchain networks today. “True freedom of speech should be empowered by solid technology,” asserts Daniel Wang, highlighting the core mission of Taiko’s development. Taiko Labs aims to revolutionize Ethereum scaling with its ownerless rollup design, enhancing freedom of expression and decentralization in blockchain technology. Breaking New Ground with Taiko’s Ownerless Rollup Technology Taiko Labs, co-founded by Daniel Wang and Terence Lam, is pioneering a new approach to scaling Ethereum through its unique rollup model. Traditional rollups typically rely on a centralized sequencer or signature verifications, which can lead to potential censorship and operational risks. In stark contrast, Taiko’s design sets out to eliminate these vulnerabilities by utilizing a decentralized method of transaction processing. Emergence from Adversity: The Birth of Taiko The concept for Taiko developed during the COVID-19 lockdown in Shanghai, where Wang’s desire for an unrestricted platform for discourse grew from his experiences of isolation and censorship. “It’s not going to be censored. Anyone can publish anything without revealing their true identity,” he explained. This philosophy drives the layers of security and decentralization Taiko aims to establish. The Technical Edge: Why Taiko is a Game Changer What sets Taiko apart is its architecture as a layer-2 base rollup. Unlike conventional solutions that depend on a centralized authority for processing transactions, Taiko harnesses validators from Ethereum’s layer-1 to ensure integrity and decentralization. This allows the system to operate without creating single points of failure, making it resilient against government intervention and other forms of censorship. Open Source Ethos: Collaboration is Key Wang emphasizes a collaborative spirit within the blockchain community, inviting developers to adapt Taiko’s open-source code. “I am open to copycats — just copy my code and improve it,” he expressed, fostering an ecosystem where innovation thrives through collective effort. This commitment to transparency and enhancement could accelerate the evolution of rollups, potentially reshaping the future of Ethereum scaling. The Vision for the Future: Scaling Ethereum Responsibly Looking ahead, Wang envisions a twofold purpose for Taiko: to demonstrate the practicality of its based rollup design, and to contribute to a better-scaled Ethereum ecosystem. “Let’s scale Ethereum in the right way… if Taiko happens to be a successful L2, that would be great,” he noted. This sentiment speaks volumes about the ethos of Taiko, where success is measured against collective advancements in decentralization rather than mere individual achievements. Conclusion In summary, Taiko Labs is at the forefront of a significant shift in Ethereum technology, focusing on a fundamental right: the freedom of expression. With its innovative architecture, commitment to decentralization, and collaborative nature, Taiko could very well lead the charge towards a more resilient blockchain infrastructure. As Daniel Wang aptly puts it, “Together, we are stronger,” underscoring a future where technology empowers voices rather than silences them. In Case You Missed It: Ether ETFs Experience Positive Cumulative Flows Amid Recent Inflows, Suggesting Potential Growth in the Market
Nethermind Launches Ether Layer2 Network Called 'Surge Rollup'
Nethermind, an ethereum client, has launched a new ethereum Layer2 solution called Surge Rollup that focuses on performance, according to The Block. Additionally, according to Nethermind's website, Surge Rollup is an ULTRABASED rollup with gigabit speeds, built on top of the Taiko stack, and is designed to target developers, builders, and autonomous agents; launches as Phase 2, prioritizing activity, censorship resistance, security, and features that don't require licensing; is verified by an EtherCorrector Sorting, not a centralized sorter; Uses ETH as gas without any native tokens, credits, or airdrops; Provides Ether performance through the Nethermind client.
Data: Taiko's daily trading volume has broken through 5 million transactions, and the TVL has exceeded 81 million US dollars
According to Taikoscan data, the daily transaction volume of Ethereum L2 network Taiko broke through 5 million on November 4th, setting a new historical high. Also according to DefiLlama data, Taiko's TVL reached $81 million, also setting a new historical high. The TVL has increased nearly tenfold within two weeks.
Khamzat Chimaev's Impressive Win Puts Him in Contention for UFC Middleweight Title Shot
The UFC middleweight title shot is currently uncertain, with Sean Strickland originally promised the next opportunity but UFC CEO Dana White's recent comments suggesting a possible change. Despite this, Strickland remains confident in his position as the next in line due to his win over Paulo Costa. There is speculation that the UFC may be hesitant to send Strickland to South Africa for the fight, but Khamzat Chimaev could potentially challenge for the title if he wins his upcoming fight against Nassourdine Imavov. In other UFC news, Ilia Topuria won the Featherweight Championship at UFC 308 via TKO in the third round.
Taiko Trailblazer Season 1 rewards are now available, and Season 2 rewards are now available
On October 12th, Taiko, an Ethereum L2 network, announced that the rewards for the first season of pioneers will soon be available for claiming. The claiming period is one month, until November 12th, 00:00 UTC. The second season of Taiko pioneers has already begun.
The rewards for the first season of Taiko Pioneers are now available to claim, and the second season reward event has already begun
BlockBeats reports that on October 12, the Ethereum L2 network Taiko announced that rewards for the first season of Pioneers will soon be available to claim. The claiming period is one month, until UTC time November 12 at 00:00. The second season of Taiko Pioneers has already begun, supporting locking TAIKO to get XP rewards. Users can lock TAIKO tokens and wETH in an 80-20 pool to gain Trailblazers XP boost (up to 60 times), collect SYMM points and exchange fees. The reward distribution for each level in the first season is as follows: LEGEND: 5,263.16 Densetsu: 2,346.04 Kodai: 1,055.41 Hashira: 572.56 Shogun:290.31 Taichou II:174.19 Taichou I :135.24 Sensei II :100 .38 For more details see official documentation.
Ethereum Beyond Limits: Meet the 5 EVM Chains Changing the Game
ZK-EVM technology, which Taiko uses, can be considered a solution to the problem of Ethereum scalability without losing security and compatibility. Interconnection between the blockchains, such as Moonriver and Kava, is becoming a vital function for reaching new audiences Base and Godwoken are Layer-2 solutions that solve scalability problems at the same time as keeping strong connections with original blockchains. The Ethereum Virtual Machine (EVM) has emerged as one of the fundamental building blocks of blockchain engineering. EVM allows developers to write and deploy smart contracts across different platforms. EVM-compatible chains propose new solutions to the problems of scalability, interoperability, and user experience. This article present five disruptive platforms which are highlighting fresh horizons in the blockchain field. Taiko: Pioneering Type 1 ZK-EVM Technology Taiko is a notable example of a successful ZK-EVM protocol integration. This platform is designed to improve Ethereum’s scalability without any loss of compatibility with the current smart contracts and tools. Taiko’s approach to layer 2 scaling looks to dramatically decrease the cost per transaction and increase the TPS without sacrificing security or decentralization. Moonriver: Bridging Polkadot and Ethereum Ecosystems Moonriver has become one of the best parachains in the Kusama ecosystem, connecting the Polkadot and Ethereum networks. Moonriver also offers full EVM compatibility, meaning that dApp developers can easily port their Ethereum-based applications with minimal changes. This integration leads to the advancement of solutions built on blockchain and the extension of blockchain projects across various networks. Godwoken: Elevating Layer-2 Solutions on Nervous Network Godwoken is the only solution of its kind, based on the Nervous Network for layer 2. For the former, its EVM implementation enables the direct deployment of Ethereum dApps while also utilizing the distinct structure of Nervos. According to the scale and interoperability concept of Godwoken, it can be seen that it is a suitable platform for developers in terms of high performance and cross-chain. Base: Coin base’s Foray into Scaling Solutions Base is created by the cryptocurrency exchange Coinbase which turns out to be an extraordinary layer-2 network focused on Ethereum’s problems with scalability. Constructed using Optimism’s OP Stack, Base intends to offer a low-fee, high-speed environment for dApps. That is why its integration with Coinbase’s large user base can contribute to the widespread adoption of layer-2 solutions. Read CRYPTONEWSLAND on google news Kava: Blending Cosmos and Ethereum Functionalities Kava sets itself apart with the foundation of the Cosmos ecosystem and full compatibility with the Ethereum Virtual Machine. This versatile approach enables developers to incorporate the best features of both platforms to provide a powerful framework for building and deploying decentralized applications. Kava being decentralized can provide developers and users of blockchain solutions exposure to a wide variety of solutions and applications all under one umbrella. disclaimer read more Crypto News Land, also abbreviated as "CNL", is an independent media entity - we are not affiliated with any company in the blockchain and cryptocurrency industry. We aim to provide fresh and relevant content that will help build up the crypto space since we believe in its potential to impact the world for the better. All of our news sources are credible and accurate as we know it, although we do not make any warranty as to the validity of their statements as well as their motive behind it. While we make sure to double-check the veracity of information from our sources, we do not make any assurances as to the timeliness and completeness of any information in our website as provided by our sources. Moreover, we disclaim any information on our website as investment or financial advice. We encourage all visitors to do your own research and consult with an expert in the relevant subject before making any investment or trading decision.
Vitalik: The decentralization represented by Taiko BasedRollup is exciting
News on September 20, Ethereum co-founder Vitalik made a share about "the future development direction of L2 expansion" at the Roll Upday event. In it, he mentioned: "Decentralized Based Rollup related projects and routes represented by Taiko are exciting." He expressed high recognition for this.
Overview of Important Developments on the Afternoon of September 18
7:00-12:00 Keywords: COW, Taiko, DePIN 1. Moody's: DePIN technology has great potential but faces multiple challenges; 2. Coinbase adds CoW Protocol (COW) to its listing roadmap; 3. Bridgewater founder Dalio: A 25 basis point rate cut by the Fed would be appropriate; 4. Web3 startup Vana completes $5 million strategic round of financing, led by Coinbase Ventures; 5. US SEC accuses NanoBit and CoinW6 of using social media for cryptocurrency "relationship investment scams"; 6. Coinbase US policy head: Both parties agree on the need for crypto policies to maintain global economic competitiveness; 7. Taiko completes Trailblazers Season 1 snapshot and launches Season 2, offering 6 million TAIKO.
Vitalik Buterin highlights Layer 2 technology for DeFi growth
Vitalik Buterin, co-founder of Ethereum (CRYPTO:ETH), emphasised the critical role of Layer 2 technology in the future of decentralised finance (DeFi) through his X account. He highlighted that the significant reduction in costs associated with Layer 2 solutions is a key factor for broader DeFi adoption. Buterin noted, “Low transaction fees are the cornerstone of the cryptocurrency market’s success,” emphasising that although this goal was initially proposed in 2020, it is becoming a reality with advancements in Layer 2 technology. Buterin pointed to Taiko, a rollup-based decentralised Layer 2 solution, as a strong example of how reduced fees can be achieved without compromising decentralisation. He asserted that DeFi can only reach mainstream adoption if transaction fees are kept low, a barrier that the cryptocurrency market has yet to fully overcome. However, decentralised Layer 2 solutions like Taiko offer promising advancements in tackling high transaction fees, which are seen as a significant obstacle to growth. Robert Sasu, a core engineer from MultiverseX, responded to Buterin’s remarks by suggesting that while Layer 2 technology has the potential to reduce fees, it often relies on centralised architectures in practice. He argued that this reliance undermines the core principle of decentralisation that blockchain technology is built upon. Sasu called for more decentralised solutions to address this issue. In response, Buterin disagreed, highlighting that Taiko's model has successfully achieved low transaction fees while maintaining decentralisation. He emphasised that Taiko’s success shows the feasibility and affordability of truly decentralised Layer 2 solutions, setting a strong precedent for future projects.
Vitalik: Taiko is a cost-effective decentralized L2, which will promote the popularization of DeFi
Ethereum founder Vitalik Buterin posted on X stating that Layer 2 (L2) technology has finally become affordable, which is key to the popularization of decentralized finance (DeFi). As early as 2020, he proposed that low transaction fees are the foundation for the success of the crypto industry, and this has only recently become a reality. Robert Sasu, core engineer at MultiverseX, responded by saying that L2 currently only offers low costs in centralized situations. Vitalik disagreed with this view and pointed out that Taiko is a decentralized based rollup solution, indicating that the cost of decentralized L2 like Taiko has reached an acceptable level. Sasu agreed but added that rollup-based solutions are still in minority and hopes more projects will migrate to this architecture.
Taiko: We are currently working on upgrading the Taiko-based rollup protocol to version 1.9.0, and preparing for the Ontake fork
September 13 news, Taiko announced on X that the team is working to upgrade the rollup protocol based on Taiko to the new version 1.9.0 and prepare for Ontake (the first fork of TaikoBCR protocol). Ontake can bring the following features to Taiko L2: - Enhanced L2EIP-1559: The base fee in L1 is adjustable, and ultimately all relevant parameters will be managed by DAO of L1; - Preliminary support for reconfirmation of transactions: Block proposers can definitively construct multiple blocks without having to submit old blocks to L1 first; - Batch support: Blocks can be proposed and proven as a batch, opening up possibilities for proof aggregation which will further reduce Gas costs; - Calldata from contract proposers: Proposers can use Calldata without signature verification. This means that when using Calldata for data availability, proposers could either be contracts or EOAs.
Taiko and hacker marathon platform DoraHack officially launch the global hacker marathon "Grant Factory"
September 13 news, according to official reports, Taiko's global flagship Hackathon Grant Factory was officially launched on DoraHacks.io today, with a total prize pool of $100,000. It is divided into three tracks and aims to discover innovative, interesting projects that have a positive impact on society. As the first truly decentralized rollup that requires no permission and is equivalent to Ethereum, Taiko has now achieved autonomous profitability for proposer prover, marking further realization of Ethereum's expansion technology. DoraHacks.io is the industry's largest developer incentive platform and hackathon infrastructure with over 10,000+ early-stage developer startup teams.
South Koreas top investment research institution released a nearly 50-page Taiko in-depth report: Redefining Ethereum L2 solutions
Original author: FourPillar Original translation: TechFlow Ethereum was launched in 2015 with the goal of realizing the full potential of blockchain technology through smart contracts and decentralized applications (dapps). However, as the number of users and transaction volume of the Ethereum network grew rapidly, it encountered serious scalability issues. Initially, the number of transactions on Ethereum was relatively small, so the processing capacity of the blockchain was not an issue. Users could process transactions quickly and cheaply, and the network operated stably. However, as Ethereums popularity quickly increased, various dapps such as DeFi, games, and NFT markets emerged, and the number of transactions surged. As a result, the time to include a transaction in a block increased, and transaction fees rose significantly. This was particularly burdensome for users who made small transactions or required fast transaction processing. To solve the scalability problem, the Ethereum Foundation and the community have studied a variety of solutions. Among them, sharding is a prominent solution. Sharding is a scalability technology that divides the blockchain network into multiple smaller shards, greatly improving transaction throughput. Just like multiple computers can process tasks at the same time, sharding allows the Ethereum network to process more transactions quickly and efficiently. Ethereum plans to introduce this technology to greatly enhance the networks processing power. Despite the high anticipation for this technology, Ethereum shifted from directly implementing sharding to a Layer 2 approach due to concerns about centralization and technical challenges that caused development delays. As Ethereum fully adopts L2 solutions, multiple Ethereum L2 projects have emerged. Taiko, which will be introduced in this article, is one of them. Its development direction is unique and different from many other Ethereum L2s. Because Taiko aims to comprehensively solve the problems faced by the existing Ethereum L2, before we delve into Taiko, lets first discuss the development history of Ethereum L2 and the problems it has encountered. 1. The heyday of Ethereum L2 blockchain 1.1 The rise of Ethereum L2 blockchain: different approaches and concepts Ethereum Layer 2 refers to blockchain infrastructure that aims to increase transaction processing speed and reduce fees while maintaining the security of the Ethereum mainnet (Layer 1). The most well-known L2 types are Plasma, Optimistic Rollup, and zk Rollup. Ethereum L2 projects began to develop their own Ethereum L2 blockchains based on their own methods, philosophies, and beliefs, pursuing the common goal of solving Ethereums scalability problems. As a result, users enjoy lower fees and faster transaction speeds. However, is this a question of direction or speed? As the number of Ethereum L2 blockchains rapidly increased, Ethereum and its scalability issues began to take a back seat. Fundamentally, Ethereum L2 was created to solve Ethereums scalability problem, but many of these projects began to focus more on promoting their own mainnets and neglected to solve the core problem. Many Ethereum L2s chose to deliberately reduce the way they connect to Ethereum, only providing minimal value association through bridging, or even completely without support in some cases. This has led to the emergence of independent blockchains that are actually unrelated to Ethereum. For example, Blast launched its mainnet on February 29, 2024 , initially emphasizing its positioning and concept as Ethereum L2. However, at some point, it began to call itself a full stack chain and gradually distanced itself from Ethereum. It is no coincidence that Blasts official account on X (formerly Twitter) changed from @Blast_L2 to @blast. Source: Jim X This shows that, despite many Ethereum L2s claiming to value connecting to Ethereum and working to expand its scalability, no real Ethereum L2 seems to be able to deliver on its promise to work with Ethereum. So what exactly is the problem? 1.1.1 Decreased connectivity with Ethereum Many L2 solutions have increasingly emphasized their unique features and functions, resulting in a gradual weakening of connectivity with Ethereum. This intention to build an independent ecosystem stems from the pursuit of autonomy. However, this independence may hinder interoperability with the Ethereum mainnet, making it difficult for L2 and Ethereum to interact seamlessly. As a result, L2 blockchains, which were originally created to solve Ethereums scalability problems, ultimately weaken the overall integrity of the network. This deviates from the original intention of Ethereums scalability solution and may cause chaos in the entire Ethereum ecosystem. 1.1.2 Centralization for Efficiency Some L2 projects have resorted to centralization in their quest for efficiency. While this approach may improve performance and reduce fees in the short term, it undermines the fundamental principle of decentralization of blockchain technology. This could undermine trust and security in the technology in the long term. Furthermore, centralized structures create single points of failure and increase security vulnerabilities, posing significant risks to users and developers. 1.1.3 Ignoring Developers’ Needs As L2 projects build their ecosystems, they often cause confusion and burdens for developers. Since each L2 project adopts a different technical approach, developers are forced to learn and adapt to multiple platforms, which sets a high threshold for developing new dApps or porting existing dApps to L2 blockchains. In addition, due to the lack of standardized protocols between L2 blockchains, developers face the challenge of modifying their code to adapt to different infrastructures. This situation not only reduces developer efficiency, but also hinders innovation and growth within the Ethereum ecosystem. L2 projects may argue that they have no choice but to make these decisions to expand their ecosystem and obtain funding. However, this trend ultimately weakens the security of the Ethereum mainnet and has a negative impact on the entire Ethereum ecosystem. 1.2 Return to the essence Source: Vitalik Buterin warpcast In July 2024, Ethereum founder Vitalik Buterin published an article criticizing the current blockchain industrys overinvestment in infrastructure. Vitalik pointed out that this overinvestment stems from investors indirectly investing money in technology rather than directly investing in tokens to comfort their moral conscience. His observation seems to coincide with the disorderly emergence of L2 projects. As a large amount of money flows into infrastructure, some projects that focus only on profits rather than Ethereums scalability narrative have emerged, causing Ethereum and its scalability issues to gradually fade out of the L2 narrative. Of course, investment in the L2 ecosystem is not a bad thing in itself. Capital is essential to the operation of the project. However, this capital should not be the top priority. What is most important is to focus on the problems that the L2 solution is trying to solve and how it intends to achieve those goals. L2 projects must remember their original goal of solving Ethereum’s scalability problem. It is important to maintain interoperability with Ethereum, adhere to the principles of decentralization, and provide an environment where developers can easily participate. If L2 solutions fail to achieve this balance, not only will the development of the Ethereum ecosystem be threatened, but the long-term trust and security of blockchain technology will also be threatened. When L2 projects return to their core principles and solve Ethereum’s scalability problem by working closely with Ethereum, real progress in blockchain technology will be achieved. 2. Taiko: The real Ethereum L2 So what factors are needed to become an Ethereum L2 that truly solves Ethereums scalability problem? There are three key points here: 1) Is it fully integrated with Ethereum? 2) Is it fully decentralized? 3) Does it fully consider the needs of developers in the Ethereum environment? Lets examine Taikos efforts to become a true Ethereum L2 based on these factors. 2.1 Ethereum’s equivalent of L2 The solution to Ethereums scalability problem must naturally integrate closely with Ethereum. Here, integration refers not only to system-level integration, but also to value integration and even concept integration. Of course, integration does not mean being exactly the same or repetitive in many aspects. However, this is an important quality required to become a true Ethereum L2, because many blockchains do not follow these basic principles when running as Ethereum L2. 2.1.1 Type-1 EVM blockchain On August 4, 2022, Vitalik Buterin published The different types of ZK-EVMs , analyzing and classifying zkEVMs. According to his analysis, zkEVMs are divided into Type 1, 2, 2.5, 3, and 4. Higher numbers mean lower interoperability and compatibility with Ethereum, but higher efficiency in generating proofs and overall performance. In other words, higher-numbered zkEVM types involve changes that modify the EVM core or introduce additional modules to optimize performance. While Vitalik notes in the article that no one zkEVM type has a clear technical advantage and that they may coexist, he concludes at the end of the article: “Personally, I hope that over time, through improvements in ZK-EVMs and improvements in Ethereum itself to make it more suitable for ZK-SNARKs, everything will become Type 1.” — Vitalik Buterin (Founder of Ethereum) Ultimately, in the choice between interoperability and performance, Vitalik chose interoperability over Ethereum scalability. Although this article was written in 2022, it is still worth reflecting on in the context of the emergence of a large number of Ethereum L2 blockchains today. To truly operate as an Ethereum L2 blockchain, the ultimate goal should be to implement Type-1 zkEVM. While Vitalik’s article only categorizes zkEVMs, from a broader perspective, the structure of L2 itself can also be extended to the type of EVM or L2 depending on whether it is fully integrated with Ethereum. From this perspective, Taiko aims to achieve Ethereum’s scalability by using a Type-1 EVM equivalent to Ethereum. Because Taiko aims to be an L2 blockchain equivalent to Ethereum, it is inevitably relatively inferior in performance to other types of Ethereum L2 blockchains, such as type 2 or type 3. However, considering that other L2 blockchains mentioned above are not fully committed to Ethereums scalability, this trade-off is reasonable. It is worth noting that this is not a big problem because the Taiko team is aware of this and has explicitly set a goal to improve performance deficiencies through internal protocol design. 2.1.2 Based Rollup Source: MEV for “Based Rollup” Taiko not only fully integrates Ethereums system infrastructure, but also strives to keep up with Ethereum in terms of security. Taiko adopts a concept called Based Rollup, which does not require a centralized sorter to run. Instead, Ethereums validators also act as Taikos sorters, responsible for sorting transactions and blocks. Due to these characteristics, the fragmentation of the Ethereum ecosystem has the potential to be reintegrated into a whole. Based on the characteristics of Based Rollup, Ethereums block proposers become Taikos sorters. This role comes with specific responsibilities, including maintaining their profits as Taikos MEV (maximum extractable value) beneficiaries and maintaining activity as sorters. This additional incentive mechanism prompts them to operate more carefully. 2.2 The Path to Full Decentralization From a systemic perspective, decentralization is a complex and inconvenient concept. Frankly speaking, if everything is handled and managed by a single center, it will be more efficient and easier to maintain. Therefore, many Ethereum L2s choose a centralized sorter model. However, this approach has flaws. For example, malicious sorters may censor transactions or cause single points of failure to increase. In this case, who will trust the system? The blockchain industry was born precisely because no one can be fully trusted. In order to eliminate these potential risks, it is crucial to achieve full decentralization. Source: Based Contestable Rollup (BCR): A configurable, multi-proof rollup design What conditions are needed to achieve full decentralization? Taiko has thought about this issue and launched Based Contestable Rollup (BCR). The key to avoiding centralization is to ensure multi-party participation, prevent collusion, and encourage competition. BCR adopted by Taiko is a rollups protocol with a competitive mechanism that plays a role in rollups proof and sorting, covering all the necessary elements. “34,469 lines of code is going to be hard to make bug-free for a long time.” — Vitalik Buterin The reason Taiko chose the BCR structure was to achieve full decentralization. Vitalik Buterin pointed out that zk-SNARKs is not yet a completely reliable technology. In particular, the latest zk-SNARK systems are significantly more complicated, which greatly increases the possibility of errors. Since the technology is not yet mature, it is expected to become more complex and thus more prone to technical errors. When there are such vulnerabilities, centralized rollups can prevent the problem from getting worse because there is an entity responsible and able to solve any technical errors or specific risks. However, Taiko pursues a completely decentralized environment, which makes it difficult to clearly solve these problems. Therefore, Taiko avoids relying on the structure of blindly trusting zk-SNARKs. In other words, through the BCR structure, Taiko is prepared for the possibility of rollups proof errors and has established a system that can challenge incorrect rollups proofs. To understand how Taikos BCR works, a simple example may be more effective than a complex explanation. Alice proposes a new block. Bob submitted a proof of state change from H1 → H2. H1 is the parent hash and H2 is the new block hash. Bob pledged 10,000 TAIKO as security deposit. His proof entered the cooling-off period. The state information proposed by Bob and the attached proof are publicly disclosed. Cindy believes that Bobs state change should be H 1 → H 3, not H 1 → H 2. Cindy pledged her 10,000 TAIKO as a competitive deposit during the cooling-off period and challenged Bobs proof. The disputed status change between Bob and Cindy is pending a higher level proof during a cool-off period. This higher level proof allows Bob and all other attesters a chance to challenge it. Scenario 1 - If Bobs solution is correct: David verifies Bobs H1 → H2 solution, proving that Bob is correct. David receives 2,500 TAIKO as a reward for completing a higher level of verification, and becomes a validator for H1 → H2, staking 20,000 TAIKO as a deposit. Cindy lost her entire deposit because she requested the wrong modification. Bob gets his original 10,000 TAIKO deposit back and is rewarded with an additional 2,500 TAIKO for coming up with the correct solution. Davids new plan and the cooling-off period for verification begins. Scenario 2 - If Bobs solution is incorrect and David proposes a new solution: David provides a three-step transition proof from H 1 → H 4, proving that Bobs transition is wrong. David is rewarded with 2,500 TAIKO and pledges 20,000 TAIKO as a deposit to provide capital support for his modified state information and proof. Cindy gets her original 10,000 TAIKO deposit back and receives an additional 2,500 TAIKO as a reward for successfully challenging Bobs erroneous status change information. Bob forfeited his entire deposit for proposing the wrong state change information and proof. Davids new plan and the cooling-off period for verification begins. This structure incentivizes rollup validators to stay accountable when challenging by using competitive deposits and prevents unnecessary attacks. Notably, the deposit required to compete increases significantly as the number of validation rounds increases, thus preventing unnecessary competitive rounds. In addition, Taiko adopts multiple proof systems in BCR. This system allows different rollup verification systems (such as SGX, ZK, SGX+ZK, etc.) to be used according to different stages to ensure the flexibility and more stable operation of the system. Despite these advantages, this design also has a disadvantage: when the competition frequency is low, the validator is not active enough. The validator mechanism needs to make a profit through a lot of competition, so in an environment with insufficient competition, they may choose not to participate. To address this problem, Taiko implemented dynamic adjustments to different rollup verification systems to solve this challenge. In the early stages of the service, there may be a low frequency of competition. To address this, a group of validators called Guardian Provers will utilize a multi-signature scheme as a security guarantee until the system matures. As the system matures, their role will gradually decrease and eventually disappear to achieve full decentralization. 2.3 Built for EVM builders The various features of Ethereum L2 and the more decentralized L2 are attractive and necessary. However, we often overlook a key question: Why do Ethereum L2s exist? Who are they designed for? The answer is simple: they exist for ecosystem participants who want to use these Ethereum L2s. Among them, developers who attract a large number of users and promote the development of the entire L2 ecosystem are particularly important. However, in this golden age of Ethereum L2 blockchains, a large number of infrastructures with their own rules have emerged. This situation is like operating the same service in countries with different laws and regulations, and it takes a lot of unnecessary time and money to deal with the differences. In order to help developers focus resources on service development effectively, we need to standardize rules and narrow the gap between infrastructures. To this end, it is crucial to introduce infrastructures that have been historically verified or widely used by many developers. Yes, we need to introduce infrastructures used in the Ethereum environment. This will enable developers to leverage the methodology and expertise they have accumulated on Ethereum, making it easy to integrate into the Ethereum L2 blockchain. “Taiko can only make a difference in the world if it helps others change the world.” - Taiko Labs In this regard, Taiko has demonstrated a real commitment to developers. As Taikos blog post states, Taiko will benefit ecosystem participants, especially developers, by allowing them to work freely. To deliver on this promise, Taiko continues to open source all development and adopts a framework called Based Booster Rollup (BBR) to help EVM developers transition faster and easier. BBR is an extension of the advantages of Based Rollup from a developers perspective, exploring how to apply the advantages of Based Rollup to the application layer of the core infrastructure of the blockchain. With Taikos BBR, developers only need to deploy their dApp once on L1 Ethereum to achieve automatic dApp deployment on all L2s without additional work or resource investment. 3. Taiko’s wish: Ethereum integrated infrastructure and community We have explored the direction Taiko is pursuing. Despite having three powerful ideas as a foundation, ideas alone cannot bring about significant changes in the industry. These ideas must be implemented within a planned timeline so that others can benefit from them, forming a virtuous cycle and becoming an industry disruptor. So, lets look at the process of how Taiko intends to become an industry disruptor from the perspective of the past, present and future. 3.1 Ethereum Integrated Infrastructure One of the key pillars is infrastructure. As the cornerstone of becoming a true Ethereum L2, Taiko is leveraging multiple technical advantages to build this infrastructure. Lets take a look at how Taikos infrastructure history has developed. 3.1.1 So far — from Taiko testnet to mainnet Taiko is not trying to accomplish all goals at once. In order to achieve the major goal of launching the mainnet, it has conducted as many as seven alpha testnets, gradually preparing for the realization of Taikos vision. Lets first take a look at the contents of these seven stages of alpha testnets. Alpha Testnet-1 (Snæfellsjökull) All developers can deploy smart contracts, and users can use all Ethereum and Solidity tools just like on Ethereum. This makes it possible for everyone to test transactions. This version allows anyone interested to run an L2 node and opens up the participation of block proposers. To this end, Taiko plans to run a few nodes and propose blocks, inviting everyone to join. The testnet includes a cross-chain bridge for transferring assets between the testnet and Ethereum, and a block browser for checking transaction history. Alpha Testnet-2 (Askja) This is the first testnet that has successfully verified that the network can run through a proof-of-concept mechanism open to everyone. It lays the foundation for the full decentralization of this version. In addition, the monitoring and alerting functions of the blockchain network are implemented, and developers can directly deploy their decentralized applications (dApps) to this testnet without modifying the code used on Ethereum. Alpha Testnet-3 (Grímsvötn) This release establishes and implements a token economic model based on a new fee and reward model. It also includes testing the necessary proof cooling mechanism in the proof mechanism, as well as preliminary testing of the starting layer of Taiko L3. Alpha Testnet-4 (Eldfell L3) In this version, the initial layer of L3 was deployed for the first time, and the concept of rollup-on-rollup was introduced. Since Taiko L2 is fully integrated with Ethereum, Taiko actually treats L2 as L1 and tries to expand to L3. In addition, a new staking-based verification mechanism is introduced to prevent the centralization of validators and ensure that they receive reasonable rewards. Alpha Testnet-5 (Jólnir) This release introduces a new proposal and validation implementation based on Proposer-Builder Separation (PBS). PBS is a series of processes involving economic mechanisms between proposers and validators to ensure the decentralized nature of block construction. Unlike the previous testnet that did not introduce this aspect, this version of block construction adopts an open market model. Alpha Testnet-6 (Katla) In the sixth testnet Katla, the initial version of BCR (Blockchain Consensus Rule) was implemented. Since Taiko aims to be the L2 equivalent of Ethereum, this version tests and prepares for the latest updates of Ethereum (such as EIP-4844), although these updates have not yet been activated. In addition, the cross-chain bridge has been updated and the blockchain browser has been enhanced to provide more comprehensive information. Alpha Testnet-7 (Hekla) The last testnet, Hekla, focused on activating EIP-4844, which had been prepared in the previous testnet. This successfully implemented and adopted the new rollup storage mechanism Blob on the Ethereum mainnet. In addition, this testnet version introduced several improvements, including adjustments to L2 block gas issuance, activation of snap sync, and modifications to EIP-1559 settings. Based on the features applied and tested in this version of the testnet, the mainnet is now ready without any problems. Source: Taiko Mainnet #1 Block Taiko Mainnet The blockchain network content verified and secured during the testnet is presented to the world through the mainnet release. It is worth mentioning that Ethereum founder Vitalik Buterin generated the next block immediately after the genesis block, adding importance to it. General users can transfer ETH from Ethereum to the Taiko mainnet through the cross-chain bridge and interact directly with decentralized applications (dApps) on the Taiko blockchain. Developers in particular can run nodes, propose and verify blocks, and actively participate in this Taiko blockchain with great potential. In terms of technology, Taiko has introduced implementation modules such as BCR and Raiko, reflecting its determination to become a true Ethereum L2. 3.1.2 Now - Pre-confirmation and Multi-Proof Systems As Taiko successfully launched the mainnet through six testnets, it is also constantly consolidating its internal structure to become a more advanced Ethereum L2. Two of the most notable developments are the pre-confirmation and multi-proof systems, which we will explore in detail below. Pre-confirmation Even after the mainnet launch, Taiko is still working to inherit the security and determinism of Ethereum. However, this development also brings the risk that block proposers may face survival difficulties due to lack of profitability. For example, in an ecosystem with scarce liquidity like Taiko, users usually give low tips to block proposers, making Taikos 12-second block time insufficient for any block proposer to be profitable. Therefore, Taiko Labs is temporarily operating proposers without pursuing profits to prevent this from happening. If no action is taken, the block time of the Taiko mainnet will continue to increase. In order to solve the profitability problem of L2 block construction, the improvement of block time, and the efficiency of data release, Taiko plans to introduce a concept called pre-confirmation. Pre-confirmation is the main focus of research and development in the second half of 2024, and will also play an important role outside the Taiko mainnet. Through pre-confirmation, L2 block construction can become more efficient and stable, allowing users to enjoy faster transaction confirmation speeds. In addition, pre-confirmation can simplify and enhance the rollup structure by integrating the roles of L2 and L1 proposers. This is associated with the sorting-based mechanism, which may encounter difficulties in actual operation when considering the profitability of builders, the startup survival mechanism, and the configuration of fast block times. However, if multiple pre-confirmation participants perform pre-confirmation, a fork may occur on the Taiko mainnet. Therefore, despite some controversy, mechanisms such as leader selection are being discussed as a practical compromise. Multi-factor authentication system Another topic of Taikos research and development is a multi-authentication system that aims to integrate multiple clients and various authentication systems. The multi-authentication approach reduces the risk of vulnerabilities in client implementations and authentication systems, ensuring that even if one authentication method is compromised, the other methods are protected from the same vulnerability. Source: Taikos Approach to Multi-Proofs First, Taiko plans to build an open multi-client system in which each client is able to independently verify blocks. This allows users to choose their preferred client for block verification, bringing the advantages of accessibility and scalability. In addition, it serves as a basic measure to prevent single points of failure, which contributes to the safe operation of the main network. However, since this requires Ethereum (as an L1 network) to support multi-client functionality, Taiko plans to use a closed system that uses multiple improved types of validators until this support is fully implemented. In addition, Taiko runs a free-market multi-verification system where proposers look for validators, propose blocks, and verify them using the verification system of their choice. In addition, this multi-verification system emphasizes modularity and openness, allowing multiple clients and verification systems to collaborate when generating multiple verifications. To this end, Taiko has worked with companies such as Powdr Labs and Risc Zero to improve interoperability between compilers and zk-SNARK systems and build a modular ZK stack. The implementation of these concepts is called Raiko. Raiko supports multiple zkVMs and uses SGX for enhanced security. The system increases the flexibility of block proofs through the ZK/TEE architecture and improves zkVM and TEE through standardized input methods. Taiko plans to continue integrating more zkVMs and expand Wasm zkVM. The system aims to provide a user-friendly and integrated environment for EVM-compatible block proofs. 3.1.3 Looking to the future - through BCR and BBR Despite Taiko’s significant progress, the goal of becoming a disruptor still seems far away. Ultimately, Taiko’s path to achieving its ultimate vision relies heavily on two core elements, BCR and BBR, which have been initially implemented but still need further refinement. Although we have explained BCR and BBR above, let’s review them again. BCR allows users and developers to propose blocks, run nodes, and deploy smart contracts just like on Ethereum, and introduces a dispute resolution mechanism that can quickly handle errors in rollups. This ensures certainty and accuracy within the blockchain, making BCR the cornerstone of Taikos core technology. Source: Based Booster Rollup (BBR): A new major milestone in Taikos roadmap BBR builds on the advantages of Based Rollup to provide higher efficiency and comprehensive Ethereum interoperability. This allows users to use integrated dApps on all L2s without switching between them, while developers can deploy dApps once and have them automatically adapt on all L2s. In addition, BBR solves the fragmentation problem that exists in all rollups while significantly reducing transaction costs and increasing throughput. Therefore, Taiko believes that BBR has the potential to fundamentally expand the Ethereum ecosystem, and once this technology is applied, users and developers of all Ethereum networks can look forward to a better experience. Taikos mainnet is designed to support developers, users, and builders, enabling them to operate flexibly and efficiently in the Ethereum environment, focusing on these two core pillars. However, since these pillars are not perfect yet, they need to continue to evolve and improve as important technical components to help realize Taikos vision. As these two pillars become stronger and more complete, Taiko will be able to propose a new standard for L2, providing full Ethereum interoperability, full decentralization, and closer to users and builders. 3.2 Community Another important pillar is the community. In order to ensure that the platform that Taiko builds through its infrastructure is truly valuable, community involvement is crucial. To this end, Taiko is working on multiple areas, including token issuance, token economics development, ecosystem activation, and the establishment of a governance environment. Lets take a look at some of Taikos efforts in these areas. 3.2.1 So far - TAIKO token issuance and distribution After the Taiko mainnet went live, an airdrop of TAIKO, the native token of the Taiko network, was launched. TAIKO is at the core of Taikos economic mechanism and token economics, with a total issuance of 1 billion tokens. TAIKOs Token Generation Event (TGE) takes place on June 5, 2024. The specific distribution is as follows: 11.62% of the total supply is allocated to investors, and 9.81695% is allocated to the Taiko Labs core team, as shown in the attached figure. The distributed TAIKO tokens have an initial 12-month lock-up period. After the lock-up period, 25% of the locked tokens will be unlocked, and the remaining 75% will be gradually released over three years. This vesting structure is designed to minimize market volatility, encourage long-term participation in the Taiko ecosystem, and ultimately contribute to the success of the Taiko project. The token liquidity release plan is illustrated in the figure above, where green represents tokens that have been distributed, yellow represents tokens that will be distributed within 2-4 years, orange represents tokens that will be gradually distributed over three years after one year of launch, and pink represents tokens allocated to protocol development, DAO governance and network, with a period of five years or longer. 3.2.2 Now - The Expanding Taiko Ecosystem Source: Introducing Trailblazers: Explore Taiko and get rewarded Taiko’s Trailblazers program is a loyalty program where users can earn experience points (XP) and claim rewards through various on-chain activities on the Taiko mainnet. 10% of the total TAIKO token supply has been allocated to the program, and users can earn more experience points and level up by participating in activities. Certain NFT holders will receive experience bonuses, and the program offers a variety of activities and special events. The program aims to encourage users to explore the Taiko ecosystem and actively participate in the community. Experience points can be gained by participating in activities such as cross-chain, increasing transaction volume, and proposing blocks on the Taiko mainnet. At the end of each season, rewards will be issued based on the accumulated experience points. In addition, the Trailblazers program introduces a faction system where users can team up and compete within two factions (Based and Boosted). Users can collect badges associated with each faction, which bring bonuses such as additional experience points (XP). At the end of the season, the faction with the highest experience points will receive additional rewards. Developers can also participate in this program and receive rewards for the best performing applications. The Trailblazers program aims to attract more users to join the Taiko ecosystem and allow them to gain experience and rewards through various activities. The Taiko ecosystem is growing rapidly with Taikos active support. More details on this will be presented in Chapter 4. 3.2.3 From Now On - Full Decentralization with Taiko Governance In order to achieve full decentralization, Taiko will allow the community to participate in decision-making through the DAO. Major decisions will be made through voting by TAIKO token holders to determine the operational direction of the network. However, Taikos governance is still in its early stages and is not yet fully active. Therefore, the first committee will be established by Taiko Labs, and the addition and removal of committee members will be decided by voting in the Taiko DAO. 3.3 A Challenging but Progressive Path Taiko is making steady progress, albeit slowly, towards its ideals and goals. Taiko places a special emphasis on being a user- and developer-friendly blockchain, which is reflected in the growing Taiko ecosystem after the mainnet launch. In the next chapter, we will delve deeper into the development of the Taiko ecosystem. 4. Taiko’s Ecosystem The Taiko ecosystem is a dynamic and collaborative space that aims to create a highly “Ethereum” friendly environment for developers and users. Although it is in its early stages, it aims to provide the tools and support that Ethereum has. Key milestones include the Alpha-1 testnet in December 2022 and the mainnet launch in May 2024, which includes a genesis airdrop and lays the foundation for community-driven development and governance. A key project of Taiko is its grant program, which provides financial and other support to projects on the platform. Taiko supports developers by providing the resources needed to realize their ideas. Through these grants, Taiko not only helps individual projects, but also strengthens the entire ecosystem, encouraging the development of products for the wider Ethereum community. Next, let’s explore the various components that make up the “Taiko Ecosystem”. 4.1 Taiko Organizational Structure Source: What is Taiko? | Docs Taiko L2s organizational structure consists of several key components, each of which plays a different role in managing the Taiko ecosystem. 4.1.1 Taiko Management Entity Taiko DAO This DAO will be developed as the governance body of the Taiko Protocol. TAIKO token holders will have voting rights and can participate in decision-making on smart contract upgrades and other network-related issues. Such a democratic structure ensures that the community collectively controls all smart contract aspects of the Taiko Protocol. In addition, the Taiko Treasury is managed by the DAO, processing the revenue generated by the Taiko Protocol and ensuring that financial resources are appropriately allocated to support the continued development and operational needs of the protocol. Taiko Foundation The Foundation is responsible for the management of the Taiko protocol and its ecosystem. It supports the Taiko DAO and token holders by providing transparent funding for technology development, ecosystem growth, partnership agreements, and event organization. Taiko Safety Committee The Security Committee elected by Taiko DAO is responsible for responding to emergencies and taking necessary measures to ensure the security of the protocol. It is responsible for overseeing key upgrades and changes and managing Guardian Provers to ensure the integrity and security of the Taiko protocol. 4.1.2 Core Development Taiko Labs This is a group focused on research and development of the Taiko protocol. Taiko Labs is committed to driving technological advancements to improve the functionality and performance of the protocol. 4.1.3 Community Taiko Community Includes all Taiko-related social groups and accounts, such as Taiko Discord and Taiko Twitter. The community is the main platform for communication, interaction and information dissemination among Taiko enthusiasts and stakeholders. 4.2 Taiko Team Members Daniel Wang - Co-founder and CEO He is an experienced blockchain entrepreneur and technologist, best known for founding the Loopring Foundation, one of the early zkRollups built for decentralized exchanges. His leadership of Loopring between 2017 and 2021 established the protocol as a key player in the DeFi space, improving the efficiency of transactions and payments. Prior to that, Wang held senior engineering positions at ZhongAn Insurance, JD.com, and Google, honing his skills in managing complex systems and large teams. At Taiko, Wang has successfully raised $37 million in funding and is leading the Ethereum equivalent of zkRollup, designed to scale Ethereum while retaining its core principles of decentralization and security. Terence Lam, Co-founder and COO He plays a key role in the companys strategy and operations. With three decades of experience working in the Web2 and Web3 industries, including experience in multinational Fortune 500 companies and numerous startups, Terence brings a wealth of experience to Taiko. He played a key role in obtaining $37 million in funding from well-known venture capital firms such as Lightspeed Faction and Hashed. Prior to joining Taiko, he was an associate professor at the University of Hong Kong and graduated from several prestigious universities including Harvard Business School. Brecht Devos, Co-founder and CTO He has extensive technical experience from his work at Loopring. At Taiko, Brecht played a key role in designing the technical architecture of Ethereums equivalent zkRollup, including the innovative contestable Rollup (BCR) and accelerated Rollup (BBR) designs. The architecture is designed to simplify the Layer 2 value chain, reduce trust assumptions, and promote developer adoption. His leadership was critical to the successful execution of six testnets involving more than 1.1 million unique wallets and an active developer community, preparing for the successful launch of Taikos mainnet. Ben Wan, Chief Community Officer As Chief Community Officer at Taiko, Ben Wan has played a key role in growing the largest crypto community on Discord with over 1,000,000 members. His leadership has been instrumental to the success of the Taiko testnet and the rapid growth of the mainnet. Ben’s background in managing global IT projects for major multinational companies enables him to effectively guide and support Taiko’s diverse, global community. 4.3 Ecosystem Overview Taikos ecosystem is built in a community-driven model, emphasizing open source development. In addition, Taiko supports a variety of applications and tools covering multiple fields, including DeFi, cross-chain bridges, and Web3 infrastructure. Since Taiko is fully compatible with EVM, dapps on Ethereum can be ported more easily and with reduced risks. Let’s take a deeper look at this ecosystem, from infrastructure to user experience. Source: Ecosystem - Taiko 4.3.1 Core Infrastructure From the beginning, the ecosystem has prioritized developer-friendly tools. Key partnerships have been established with industry leaders to provide core services: ANKR for RPC, Covalent and Subgraphs for indexing, Pyth and Redstone for oracle solutions, and Tenderly for developer tools. This combination of services ensures that developers have access to high-reliability infrastructure from the earliest testnet stages. Here is an overview of the key projects involved: ANKR ANKR provides remote procedure call (RPC) services, which are essential for developers to interact with blockchain networks. RPC services facilitate communication between dApps and blockchains, allowing developers to efficiently execute commands and retrieve data. ANKRs infrastructure is known for its reliability and speed, which is essential to maintaining seamless operations in the Taiko ecosystem. Covalent and Subgraphs for indexing Covalent and Subgraphs provide indexing solutions that enable developers to easily query blockchain data. Covalent provides a unified API that integrates data from multiple blockchains, making it easier for developers to access and analyze blockchain information. Subgraphs is part of The Graph protocol and enables efficient querying through decentralized indexing services. Together, these tools provide developers with the infrastructure they need to build data-driven applications and efficiently access and utilize blockchain data. Python and Redstone for Oracle Solutions Oracles are core components in blockchain ecosystems as they deliver external data to smart contracts. Pyth and Redstone are two oracle solutions integrated into the Taiko ecosystem. Pyth focuses on providing high-fidelity financial market data, which is critical for DeFi applications that require real-time price information. Meanwhile, Redstone provides a flexible and decentralized oracle network that supports multiple data feeds. Tenderly for developer tools Tenderly provides a set of developer tools that optimize the development and debugging process of smart contracts. It features real-time monitoring, alerts, and advanced debugging capabilities to help developers quickly discover and resolve problems. Tenderlys tools are particularly useful during the testing and deployment phases because they can provide in-depth analysis of the performance and behavior of smart contracts. 4.3.2 Application- DeFi Since the mainnet launch at the end of May, the DeFi space has seen significant growth, integrating both established and local blockchain projects. Users have access to a variety of DEXs, including OKU (Uniswap V3) and local versions Ritsu and Henjin DEX. Other notable projects include: iZUMi Finance (DEX) iZUMi Finance, a multi-chain DeFi protocol, has expanded its services to the Taiko blockchain, committed to providing liquidity solutions. On Taiko, iZUMi Finance launched iZiSwap, providing trading pairs and introducing features such as limit orders in a decentralized manner. This expansion to Taiko is in line with iZUMi Finances goal of supporting multiple networks and enhancing on-chain liquidity in various blockchain ecosystems. KiloEx and DTX (derivatives) KiloEx and DTX are derivatives trading platforms in the Taiko ecosystem. Both protocols provide hedging, speculation and risk management tools, offering a range of derivatives such as futures and swaps. Deri (Options) Deri is a decentralized options trading protocol in the Taiko ecosystem. It enables users to trade options, which are financial instruments that give the holder the right, but not the obligation, to buy or sell an asset at a predetermined price within a specific time. Deri offers a variety of options contracts, allowing traders to hedge against price volatility or speculate on future price movements. XY Finance (cross-chain exchange) XY Finance is a protocol in the Taiko ecosystem that focuses on enabling cross-chain exchanges. It allows users to seamlessly exchange assets between different blockchain networks, improving interoperability and liquidity in the decentralized finance (DeFi) space. 4.3.2 Applications - Games The gaming space offers a diverse range of experiences, from shooters and MMORPGs to strategy and gambling games. Notable titles include: CrackStack, Looperlands, 21 BJ, Ultiverse, and EVM Warfare. This diversity reflects the ecosystem’s commitment to providing engaging and innovative gaming experiences that cater to the preferences of different players and have the potential to attract a large number of users to the platform. Crack Stack Crack Stack is a game embedded in the Taiko blockchain ecosystem that combines puzzle and strategy elements. Players need to strategically place blocks in stacking challenges to achieve specific goals or overcome obstacles. The game uses blockchain technology to ensure fair competition and transparency, allowing players to earn rewards and compete with other players around the world. Looperlands Looperlands is an NFT gaming platform in the Taiko ecosystem, known as a pixel universe where players can play, create, and explore. It provides a metaverse experience with various games and activities that allow users to interact with NFT assets. The platform focuses on creativity and community participation, enabling players to build their own worlds and experiences. 21BJ 21BJ is a Taiko blockchain-based gaming project that brings the classic card game Blackjack to the digital world. It offers a decentralized version that allows players to play Blackjack against other people or AI opponents. The combination of blockchain technology guarantees transparency and fairness, as all game results can be verified on the Taiko network. Players can also earn rewards and participate in tournaments, making 21BJ a competitive and attractive option for card game enthusiasts. Ultiverse Ultiverse is a massively multiplayer online (MMO) game in the Taiko ecosystem that provides an interstellar travel experience. It uses NFT assets as avatars, allowing players to explore the vast universe and participate in various activities. Ultiverse focuses on social interaction and community building, giving players the opportunity to cooperate and compete in a dynamic digital environment. EVM Warfare EVM Warfare is a strategy game based on the Taiko blockchain that combines elements of warfare and resource management. Players engage in tactical combat and use various strategies to outsmart their opponents and achieve victory. 4.3.3 Application- NFT Native and mature NFT markets coexist in the ecosystem, providing diverse options for creators and collectors. Loopexchange is a native solution, while OKX NFT Marketplace brings its mature market to the platform. Creator-centric tools such as NFTs 2 Me and Mintpad provide artists with the ability to mint and manage their digital assets. Notable series such as Taikonauts, Taikoons, and Trailblazers Faction Badges have emerged, each with unique utility. NFTs2Me NFTs2Me is a comprehensive NFT creation tool designed to help artists and creators by simplifying the process of launching NFT projects. It covers the entire NFT lifecycle, including creation, deployment, and contract management, providing users with an intuitive platform to manage their digital assets. Mintpad Mintpad is a user-friendly platform that simplifies the publication and management of NFT collections. It takes care of everything from artwork generation to smart contract deployment and metadata generation, streamlining the process. Mintpad allows creators to design custom minting sites or embed minting functionality on existing sites, providing flexibility and ease of use. Taikoons Taikoons are a well-known NFT series in the Taiko ecosystem, known for providing significant advantages to holders, such as providing XP boosts for the Trailblazers Program. These NFTs enhance the user experience by providing additional rewards and incentives for users to participate in on-chain activities. Taikoons are highly sought after within the community, reflecting their value and importance in the loyalty and engagement programs of the Taiko ecosystem. 4.4 Taiko Grants Source: Grant Program – Taiko The Taiko Grants program is designed to support community projects that promote the Taiko ecosystem. It supports the realization of these projects by providing financial rewards and developer resources. Taiko Grants are divided into three tracks: Community, Partner, and Request for Proposal (RFP). The Community track supports builders and early-stage projects on Taiko, supporting diverse projects such as games, media, zero-knowledge proof (ZKP) applications, and artificial intelligence (AI). The Partner track supports mature projects with active user bases, including crypto service providers seeking to integrate with Taiko. The RFP track is for experienced builders or teams working on high-impact projects requested by Taiko Labs, focusing on Taikos protocol or ecosystem. The grant program runs in cycles with specific application opening dates, deadlines, and review periods. For example, in the second cycle, applications for the community track open on December 4, 2023, close on January 15, 2024, and reviews close on February 15, 2024. During the review phase, the grant committee evaluates the proposals, provides feedback, and selects winners to launch the project. The program encourages projects that align with Taikos mission and support open source or public product initiatives. 4.5 Latest progress after the mainnet launch Since the launch of the Taiko mainnet, there has been significant progress in all aspects of the network. Over the past 90 days, Taiko has achieved significant growth in network activity, profitability, user engagement, and technological advancement. In this section, we will look at these metrics. 4.5.1 Transaction and User Growth Taiko’s mainnet has seen growth in network activity, achieving over 100 million transactions. This surge in activity is further reflected in the network processing up to 2,000,000 transactions per day, demonstrating its strong capacity and growing adoption. The expanding user base is reflected by attracting over 1,000,000 unique wallet addresses, reflecting strong user interest and engagement in the Taiko ecosystem. 4.5.2 Profitability and Decentralization One of the noteworthy achievements after the mainnet launch is that Taiko Labs proposers have achieved decentralization, permissionlessness, and profitability. This milestone overturns the current understanding of Ethereum and brings new possibilities for Ethereum scaling solutions. Although Taiko has suffered losses in the past, it is steadily moving towards profitability as more and more dapps are launched. The next few months will be a critical period to observe. Source: Onchain Profit - growthepie 4.5.3 Lower operating costs Taiko has made several technical advances aimed at optimizing network performance and reducing costs. In particular, gas fees for Taiko L1 contracts have been reduced by 30%, increasing profitability for proposers. In addition, liveness deposits and validity and dispute deposits for SGX proofs have been reduced by 50%, which reduces capital costs and enables more participants to participate in Taikos permissionless transaction ordering. 5. Now is the time to pay attention to Taikos progress Source: Taiko Mirror Nine years have passed since Ethereum made its global debut. During this period, Ethereum has experienced tremendous growth and has undergone many changes to address the challenges encountered during the expansion process. Among them, Layer 2 solutions have become a key choice for Ethereum to solve scalability issues, ushering in the current era of Ethereum L2 prominence. However, over time, some solutions have emerged that deviate from the original Ethereum L2 vision, making their relationship with Ethereum more competitive or antagonistic, thereby weakening Ethereums security. Now, the key is to focus on identifying L2s that are truly aligned with the Ethereum vision - projects that have the potential to be true partners of Ethereum rather than threats. This means we need to carefully discern which entities are truly focused on solving the scalability challenges set by Ethereum and take appropriate steps to do so. Based on this, Taiko has attracted widespread attention. Taiko is striving to become an L2 comparable to Ethereum, a fully decentralized L2, and a developer-first L2. It is worth noting that Taiko has invested a lot of effort in achieving these goals and is supported by a strong technical foundation such as BCR and BBR. Of course, many other Ethereum L2 projects are also working in their own ways, so it remains uncertain which project will ultimately dominate in this era of Ethereum L2 dominance. However, Taiko is attracting attention because it is steadily turning its clear direction, which is to solve the fundamental challenges of Ethereum, into practical results. Disclaimer This article was written in partnership with Taiko Labs for general information purposes only and does not constitute legal, business, investment or tax advice. It should not be used as the basis for any investment decision and should not be relied upon for accounting, legal or tax guidance. References to specific assets or securities are for illustrative purposes only and do not constitute recommendations or endorsements. The opinions expressed in this article are those of the author and do not necessarily reflect the views of any affiliated agency, organization or individual. The opinions in this article are subject to change without being updated. Original link
TKO short-term breakthrough at 0.33 USDT, with a 24H increase of 14.77%
Odaily reports that the market shows TKO has made a short-term breakthrough to 0.33 USDT, currently quoted at 0.338 USDT, with a 24-hour increase of 14.77%.
Which are the top token unlocks for September
Token unlocks will start affecting the market in the first day of September. In a traditionally bearish month, new token inflows will put a strain on available liquidity. The crypto market faced the challenge of absorbing the unlocks of low-float tokens. Most assets survived and their protocols continued to draw in traffic and produce fees. In September, a new batch of token unlocks is expected, possibly changing the trading profile of several prominent tokens. The first week of September will come with more than $360M in nominal value unlocked. September unlocks will be more subdued compared to previous months, possibly to avoid causing additional bearish pressure. The second week will see the bulk of unlocks for the month, valued at more than $405M. During the same period, projects will have more than $118M in cliff unlocks, testing the liquidity of the market. The month of September will continue with the usual linear unlocks for most low-float tokens. Linear unlocks are valued at close to $280M per week. As usual, the market will have to absorb unlocks from prominent L2 networks, including ARB, OP, SUI, MANTA, STRK, and others. In the case of SUI, the unlock will grant access to tokens from the earlier private sale. Taiko expands supply with community airdrop tokens The most significant unlocks in absolute value terms and in supply inflation belongs to Taiko. The Taiko L2 network aims to reach speeds similar to Base, while retaining a high-profile positioning. See also Bankrupt Rhodium receives court approval to take loan in Bitcoin or dollars Taiko has been around for only 90 days since its launch, but has heavily subsidized both its social media profile and on-chain presence. The platform is one of the biggest users of blobs on Ethereum, paying top fees for the additional block space. The Taiko unlock will in fact add the tokens of the Trailblazer airdrop, which incentivized the community in June and July. The airdrop will expand the TAIKO token supply by 15.8%, giving more tokens to all wallets that interacted with the protocol through daily tasks like bridging. TAIKO may feel significant price pressure, as currently only about 7% of its total supply is in circulation. Since June and the peak of the airdrop campaign, TAIKO also slid by about 50%, trading at $1.49. In total, the Taiko Labs team, early investors, and the Taiko Foundation hold around 47% of all tokens, to be unlocked gradually over time. The community has access to less than 10% of the tokens, meaning whales and the Taiko Foundation also can control liquidity, distribution and voting on protocol issues. Immutable unlocks tokens for development The other big unlock coming September 6 is for Immutable (IMX). The unlocks will bring $40.92M in new tokens, but the assets are earmarked for project and ecosystem development. IMX has already unlocked 79% of the supply and will add only 2% to circulating tokens. As with other assets, absorbing the supply led to price pressures, leaving IMX trading in a range. IMX peaked above $9.52 shortly after launching, and has not made a new high since then. The news of the unlock saw IMX slide further, to $1.25. See also Nvidia erases $250B in market cap despite strong earnings Data on token unlocks differ between researchers. Cheelee is listed as the biggest September unlock, with its next event unlocking more than $388M in tokens. Cheelee is a very low-float project, with no listings on the most influential centralized exchanges. Cheelee has been backed by relatively unknown entities, including VC Sila and Veligera Capital. The project has planned cliff unlocks almost weekly, predominantly for community rewards. The Cheelee project is an on-chain social media, rewarding its users for watching content. The other unlock with a big dilution effect will be for MODE, coming on September 5. MODE will expand its supply by more than 38.4%, starting from a free float of 13%. The self-reported supply of MODE is 1.3B tokens, with a total supply of 10B tokens. The unlock may be bearish for MODE, as the token has been sliding since its launch in May, to trade at $0.012. Eigen Layer is the other curious token to join the unlocks for September. EIGEN tokens are still in the pre-trading stage, with only 5% in circulation. EIGEN plans to expand its airdrop with another $28M in nominal value from September 10. The last months of 2024 will also bring a series of EIGEN unlocks for early airdrop farmers. Cryptopolitan reporting by Hristina Vasileva
One-week token unlocking: MODE and TAIKO welcome huge unlocking
Next week, 9 projects will have token unlocking events. MODE and TAIKO will have huge amounts of token unlocking. Mode Network Project Twitter: https://twitter.com/modenetwork Project website: https://www.mode.network/ Number of tokens unlocked this time: 500 million Amount unlocked this time: Approximately 6.33 million US dollars Mode Network is a modular Layer 2 network focused on the DeFi track, built on Optimisms Bedrock upgrade. Mode has designed a contract revenue sharing incentive at the protocol layer, and DApps and users that extend the Mode blockchain will directly receive a portion of the network sequencers profits. Modes unlocking this time is for users and developers airdrop, totaling 500 million, worth about 6.33 million US dollars. Since Mode has only been unlocked once, the circulation ratio is 13%, so the unlocking ratio is huge. However, there will be no new unlocking shares for more than half a year. The specific release curve is as follows: Taiko Project Twitter: https://twitter.com/taikoxyz Project official website: https://taiko.xyz/ Number of tokens unlocked this time: 12 million Amount unlocked this time: Approximately 19.68 million US dollars Taiko is an Ethereum equivalent of ZK-Rollup that scales Ethereum by supporting all EVM opcodes in a decentralized, permissionless, and secure Layer 2 architecture. This token unlocking is all for Taiko Trailblazer airdrop, with a total of 12 million tokens, worth about 19.68 million US dollars. Since the current unlocking ratio is only 9%, the impact is relatively large. The next unlocking will be carried out in December. (Odaily Note: Trailblazer is a mainnet incentive activity launched by Taiko.)
How does Taiko lead the way to decentralization of Rollup?
Original article by @xparadigms and @IngsParty Original title: Decentralizing Rollups: A Neglected Priority in Rollups Original translation: weizhi, BlockBeats Decentralization is one of the core values of blockchain. However, in order to improve the scalability of Ethereum, the Rollup solution sacrifices some decentralization in operation. Achieving full decentralization of these operations still faces challenges in ordering and proof of settlement, especially for optimistic Rollup and zero-knowledge (zk) Rollup. Despite these challenges, the development of decentralized Rollups is accelerating. Some optimistic Rollups have introduced permissionless challenge mechanisms and are testing hybrid proof systems. The Taiko project stands out for its clear decentralization roadmap. Let’s take a deeper look at why. 1. Background - Core Components: BCR and BBR Taikos Road to Decentralized Rollup introduces two proof systems and frameworks: Contestable Rollup (BCR) and Booster-based Rollup (BBR). 1.1 Based on Competitive Rollup (BCR) - Powerful L2 Proof System BCR is a Rollup design that includes a competition mechanism. The design verifies transactions by allowing participants to challenge the validity of transactions when they suspect fraud. This mechanism enhances decentralization because it allows Ethereum validators to use a challenge mechanism to sort transactions without a central sorter, thereby maintaining the integrity of the blockchain. The BCR mechanism combines the advantages and challenges of Ethereum transaction sorting, aiming to reduce transaction fees while maintaining security and decentralization. In addition, Taiko uses a variety of proof systems in BCR, including SGX, ZK, SGX+ZK and other Rollup proof systems at different stages, ensuring the flexibility of the system and more stable operation. Despite these advantages of BCR, there is a potential disadvantage in its design: when competition is low, there may be a lack of activity among provers. The structure of provers requires a lot of competition to generate profits, so in an environment with less competition, they may be more inclined not to participate. To address this problem, Taiko implemented dynamic adjustments to different Rollup proof systems to solve this problem. 1.2 Booster-Based Rollup (BBR) BBR aims to scale Ethereum DApps without redeploying on all L2 solutions. It reduces developer workload and reduces redeployment costs by sharding transaction execution and storage. This design aims to solve the problem of liquidity fragmentation between L2s and enhance the scalability of the network. In November 2023, Taiko launched a booster Rollup called Gwyneth to enhance Ethereums capabilities. Gwyneth uses Ethereum L1 validators for transaction ordering and L1 builders for block construction. Its main features include synchronous composability for seamless L1 integration, scalability to meet growing demand, and pre-confirmation capabilities for fast transactions. Gwyneth is finalized from the beginning, and its security is guaranteed by Taikos multi-proof system Raiko, and uses a trusted execution environment (TEE), with plans to introduce zkVM in the future. Both BCR and BBR are part of Taikos efficient expansion solution for Ethereum, ensuring that high transaction volumes can be handled while maintaining security and decentralization. 2. Main points 2.1 “Have we considered decentralization in Rollup?” FourPillars researcher Heechang believes that at present, most Rollups are still centralized. Decentralized sorting and proof systems are still in progress. Two well-known proof systems, optimistic Rollup and zero-knowledge Rollup, are moving towards decentralization. Optimistic Proof Systems: These systems have implemented mandatory L1 transactions and are exploring shared ordering and the introduction of permissionless challengers. Arbitrum and Optimism allow permissionless challenges, but Optimism recently banned this mechanism due to a suspected vulnerability. Zero-knowledge proof system: Most zero-knowledge Rollups do not allow forced transactions in L1. Although zero-knowledge proofs provide secure state change guarantees, operations are currently still centralized and technical challenges remain significant. Although not fully decentralized at present, Rollup frameworks like OP-Stack, ZK-Stack, PolygonzkEVM, and ArbitrumOrbit have been adopted by hundreds of L2 projects. This trend is continuing, and Rollup framework teams are working hard to achieve decentralization. However, not all projects have a clear roadmap to meet the challenges of decentralization. Taiko excels in this regard. From its inception, it has had a clear roadmap to become an L2 and decentralized Rollup framework. It has a clear path forward and working token economics that provide sustainable utility for its L2 token, which is lacking in most other projects. As other projects are also improving their codebases and infrastructure, will Taiko be able to successfully realize its vision at the right market time? This remains to be verified by time. As one of the teams working closely with the Ethereum Foundation, Taiko needs to pay special attention to its progress in decentralization. 2.2 Its time to consider the decentralization of Rollup FourPillars researcher Ingeun Kim believes that currently, major Rollup projects are working hard to achieve decentralization. However, no project has made significant progress in achieving full decentralization. The main reason is that todays mainstream Rollups give low priority to decentralization in the initial design stage. These Rollups initially focused on performance and functionality, and now find it extremely difficult to incorporate the concept of decentralization into their rigorous design. This is understandable because in the early stages, Rollup needs to deliver efficient performance results while meeting Ethereums scalability requirements. However, the concept of Rollup decentralization is becoming more and more important now. Its like the natural transition from the performance-driven Web2 era to the decentralized Web3 era. Fortunately, many Rollup projects have laid the foundation and paved the way for future decentralization. In this context, Taikos attempt at decentralized Rollup deserves active attention. In particular, its design based on the contestable Rollup (BCR) mechanism contains the basic elements for achieving full decentralization, including allowing anyone to participate, as well as fair rewards and penalties. Of course, there are still many areas for improvement, and the path to full decentralization is challenging. However, Taikos efforts are considered to be of high importance and could have a positive impact on the entire Ethereum L2 ecosystem. Their progress is definitely worth keeping an eye on. 3. Other Views 3.1 The choice is not only a technical issue, but also about decentralization Taiko member Junger said that with the popularity of Rollup, fragmentation and isolation have become key issues. There is a trade-off in the choice between Rollup-based and shared sorting layers. Shared sorters provide fast finality and cross-chain composability, but introduce new trust assumptions and potential failure points. Rollup-based leverages Ethereums infrastructure, provides liquidity and L1 composability, but faces challenges in block time and revenue. Future improvements may include pre-confirmation based and faster L1 block times to improve user experience while maintaining alignment with Ethereum. The goal is to build a decentralized ecosystem that is scalable and truly in line with the Ethereum vision. Junger emphasized that choosing whether to develop based on Rollup is not just a technical decision, but about the direction of the decentralized Rollup framework. 3.2 The final outcome is based on Rollup Justin Drake, a researcher at the Ethereum Foundation, has been actively involved in discussions about Ethereum scaling solutions, especially focusing on Rollup and Taiko projects. Drake emphasized the importance of decentralized ordering, which can alleviate monopoly control and censorship issues in transaction ordering. He believes that integrating technologies such as zero-knowledge proofs and shared orderers can enhance the functionality and security of Rollup-based. Justin Drake believes that Taiko is an important step towards a decentralized and scalable Ethereum ecosystem, and that its mainnet’s permissionless ordering and proof system is a notable feature. He also said that “the end game will be based on Rollup.” Related articles: - Booster Rollup (BBR): A new milestone in Taiko’s development—Taiko Labs -Centralization Considerations for Pre-Confirmed Rollups (Part 1) —Taiko Labs -Multiple Proofs | Taiko Documentation Original link
Layer 2 chains may run out of blob space on Ethereum blocks
Layer 2 chains took up a big part of the Ethereum traffic, alleviating high fees. Those chains are facing another bottleneck – the special space in blocks that has to secure their transaction batches. Layer 2 (L2) chains are straining the rules of blob space economy. Initially, the expansion of L2 rollups like Optimism and Arbitrum lowered fees on the Ethereum (ETH) network. Those chains still required some block space to secure their transactions. After batching activities, L2 chains use Ethereum blobs, with an option between zero and six blobs per block. This demand for block space creates a new economy, which may start to feel a strain soon. L2 networks accelerated their activity after the Ethereum Dencun upgrade. Blob space is most useful for optimistic rollups and proposed zero-knowledge (ZK) rollups. L2 chains became the top fee producers, especially with incentives and airdrop challenges. Top chains may face higher expenses as finding blob space in blocks becomes more competitive. There are suggestions L2 chains may change the posting of their transactions, waiting more before batching to bring down costs. Despite initially low-cost transactions, not all scaling chains are equally successful. Trying to offer high-capacity transactions per second may result in quickly rising blob fees. This puts old and new L2 before a choice of speed versus expenses. Some projects may subsidize their transactions, while others choose to delay verification on the Ethereum mainnet. See also Over $486M in funding flows into VC-backed projects in August Blob space filling up fast Blob space is filling up with a steady pace, especially in Q2. More than 20% of Ethereum blocks carried the maximum of six blobs. There is still space for improvement, but the blob landscape has changed since the start of 2024. The usage of blobs also varies by day and activity period, as well as by blockchains. Some trends are only temporary, especially during the hype stages of new competitive chains. Fees can rise within hours, from zero gWei to $3.70 per blob during busier periods. Blobs are still the cheaper option for securing data on Ethereum compared to calldata, the other method of storing and securing information on the mainnet. Blob fees can still reach zero, while calldata fees rise above $9.40. When it comes to competition between projects, Arbitrum posts a steady baseline of blobs. High-level traffic comes from two major sources – Base and Taiko, offering the highest transaction speeds. During days of peak activity, unidentified addresses also posted thousands of blobs tied to temporary activity. Overall, the blob economy becomes unpredictable and can enter a competitive stage, which may raise the need for a different posting schedule. Taiko chain drives high blob fees Even one L2 chain can drive up blob fees. Taiko, one of the newer scaling solutions, has been posting blobs aggressively since the market accelerated in May. See also MakerDAO's transition to Sky protocol, introduces USDS and SKY tokens One of the reasons for Taiko’s posting schedule is the need to finalize the network’s state faster and prove its position as a scaling solution. Taiko is still only outcompeted by Base, which increased all activity metrics in the summer of 2024. Until recently, Taiko was also operating at a loss, paying heavily to post blobs even when empty. Despite the subsidies, Taiko still lags behind Base and continues to post empty blobs. Taiko has shown robust growth in its active daily wallets, while it tries to keep up a prominent social media presence. The chain recently celebrated the first three months of its mainnet, where it aggressively competed with other L2 solutions. In 2024, Taiko also boosted its activity with its high-value airdrop promotion. The appearance of new L2 networks with a similar approach can start to overload the blob market and lead to sudden fee spikes. L2 are still getting developed, even though several networks have already established leadership by drawing in most of the liquidity, trading and other economic activity. However, Taiko is also in the incentive stage, subsidizing high-speed transactions with a point farming program. In the coming months, the real potential of the network will become more known as the initial hype wears off. For now, most of the expenses for blob fees come from the L2 issuer. The Ethereum chain has not benefitted significantly, as the burn rate of fees remains low and inflation has inched up to 0.73%.
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