1. Project Introduction
Taiko is a decentralized Ethereum equivalent zkRollup project that aims to scale Ethereum through zkEVM technology.
Taiko aims to be a zkRollup that is fully equivalent to Ethereum in order to scale Ethereum without changing existing decentralized applications (dApps). As a zkRollup that is fully equivalent to Ethereum, Taiko allows developers and users to leverage the power of Ethereum Layer 1 (L1) without changing existing dApps.
main feature:
Fully EVM-compatible zkEVM Type 1: Taiko’s Type 1 zkEVM is fully compatible with Ethereum, enabling developers to migrate dApps between Ethereum and Taiko without worrying about smart contract failures.
Open Source: All Taiko source code can be viewed, built or edited on GitHub, making blockchain development not limited to a small team, but also to communities and developers around the world.
Fully decentralized: In addition to its high compatibility with EVM, Taiko also attaches great importance to the decentralization of the protocol and plans to generate zkPs by submitting blocks and proofs through decentralized proposers and validators.
2. Core technology structure
2.1 zkEVM Circuit
The zkEVM (zero-knowledge Ethereum Virtual Machine) circuit is one of the core components of Taiko's technical architecture. It uses zero-knowledge proofs (ZKPs) to verify the accuracy and integrity of Ethereum Virtual Machine (EVM) calculations. With zkEVM, Taiko can scale Ethereum without changing existing smart contracts and decentralized applications (dApps), while maintaining Ethereum's security, decentralization, and compatibility.
2.1.1 Functions and features
1. Zero-Knowledge Proofs (ZKPs)
Verify transactions: zkEVM circuits use ZKPs to verify the correctness of transactions without revealing the specific data of the transaction. In this way, the amount of data processing on the Ethereum mainnet can be reduced, thereby reducing transaction costs and increasing transaction speed.
Confidentiality: ZKPs ensure the privacy of transactions and only verified proofs are submitted to the Ethereum mainnet.
2. Fully compatible with EVM opcodes
Support for all EVM opcodes: zkEVM circuits fully support all EVM opcodes, which means developers can seamlessly migrate their smart contracts and dApps to Taiko without any modifications.
Maintaining Ethereum compatibility: This high level of compatibility allows existing Ethereum development tools and ecosystems to be used directly on Taiko, greatly facilitating developers.
3. Decentralization and Security
Decentralized Verification: zkEVM circuits support a decentralized verifier model, where anyone can participate in generating and verifying zero-knowledge proofs. This decentralized approach ensures the security and integrity of the system.
Ethereum L1 Validators: Taiko’s zkEVM circuits leverage Ethereum Layer 1 validators to order transactions, ensuring the inheritance of Ethereum’s decentralization and security properties.
4. Efficient and scalable
Reduced data processing: By executing transactions on Layer 2 and generating zero-knowledge proofs, the amount of data processing on the Ethereum mainnet is reduced, thereby improving transaction efficiency and scalability.
Fast generation of zk proofs: The zkEVM circuit design optimizes the speed of generating zk proofs, ensuring that a large number of transactions can be processed efficiently.
5. Smart contracts and protocol rules
Smart Contract Execution: zkEVM circuits support the execution of smart contracts, ensuring the programmability and flexibility of Ethereum. These smart contracts are responsible for verifying zk proofs and enforcing protocol rules.
Protocol Verification: zkEVM circuits are integrated with Ethereum L1 to ensure that all proofs and transaction states are strictly verified to maintain the consistency and security of the system.
2.1.2 Working Principle
1. Transaction execution and data collection
The transaction is first executed on Layer 2 to generate corresponding transaction data.
These transaction data are collected and prepared for zk proof generation.
2. Zero-knowledge proof generation
zkEVM circuits use zkSNARKs or zkSTARKs technology to generate zero-knowledge proofs that can verify the correctness of transactions without revealing the specific content of the transactions.
Once the proof is generated, the proof and related data are submitted to Ethereum L1.
3. Verification and status update
Ethereum L1 validators verify the submitted zero-knowledge proof to ensure the validity of the proof.
Once the proof is verified, the transaction status is updated on the Ethereum mainnet, ensuring that all participants see consistent transaction results.
2.2Layer 2 Rollup Node
Layer 2 Rollup nodes are key components in Taiko's technical architecture, responsible for managing and executing transactions on Layer 2 while interacting with Ethereum Layer 1 (L1). Through Layer 2 Rollup technology, Taiko is able to increase Ethereum's transaction throughput, reduce transaction costs, and maintain decentralization and security.
2.2.1 Functions and features
1. Data Collection and Transaction Execution
Transaction Execution: Layer 2 Rollup nodes execute transactions on Layer 2, which are first processed in the Layer 2 network, reducing the direct burden on the Ethereum mainnet.
Data collection: Nodes collect data transmitted from Ethereum Layer 1 and perform transaction processing and status updates based on this data.
2. State Management
Status display: After each transaction is executed, the Layer 2 Rollup node will update and display the transaction status to ensure that all participants see consistent status information.
State preservation: Ensure the consistency and data integrity of the entire network by managing the state after transaction execution.
3. Execution of protocol rules
Protocol Verification: Layer 2 Rollup nodes execute transactions and verification processes according to the rules of the Taiko protocol. These rules ensure the validity of transactions and the security of the network.
Smart Contract Support: Nodes are able to execute smart contracts deployed on Ethereum Layer 1 and use these contracts for data transfer and zk proof verification.
4. Efficient and scalable
Improved throughput: By executing transactions on Layer 2, the network’s transaction processing capacity is greatly improved, reducing congestion on the Ethereum mainnet.
Reduced costs: Processing transactions on Layer 2 can significantly reduce transaction fees, making small transactions more economically viable.
5. Decentralization and Security
Decentralized Verification: Layer 2 Rollup nodes support a decentralized validator model, where anyone can participate in transaction verification and zk proof generation, ensuring the decentralization and security of the network.
Data transmission: The node is responsible for transmitting transaction data on Layer 2 to Ethereum Layer 1 and updating the status based on the feedback from L1.
2.2.2 Working Principle
1. Data Collection and Transaction Execution
Receiving transactions: Nodes receive transactions submitted by users on Layer 2 and execute them according to the protocol rules.
Status update: After the transaction is executed, the node updates the transaction status and maintains the latest status information on Layer 2.
2. Zero-knowledge proof generation
Generate zk proof: The node generates a zero-knowledge proof for each transaction to ensure the correctness and privacy of the transaction.
Submit proof: The generated zk proof and related data will be submitted to Ethereum Layer 1 for verification by L1 validators.
3. Verification and status update
L1 Verification: Ethereum Layer 1 validators verify the submitted zero-knowledge proof to ensure the validity of the transaction.
State synchronization: Once the proof is verified, the Layer 2 Rollup node will synchronously update the state based on the feedback from L1 to ensure the consistency of the entire network.
Advantages and application scenarios:
1. Improve the scalability of Ethereum
By processing a large number of transactions on Layer 2, Taiko's Layer 2 Rollup nodes can significantly improve the scalability of the Ethereum network and meet higher transaction needs.
2. Reduce transaction costs
Executing transactions and generating zk proofs on Layer 2 reduces dependence on the Ethereum mainnet, thereby reducing transaction fees, and is particularly suitable for application scenarios with high-frequency, small-value transactions.
3. Enhanced security and privacy
Zero-knowledge proof technology ensures the privacy and security of transactions, avoids the leakage of transaction data, and maintains the decentralized nature of the network.
2.3Taiko Protocol
The Taiko protocol is also a core component of the Taiko technical architecture. It defines and executes the rules of Layer 2 Rollup to ensure the correctness of transactions and the security of the network. Through smart contracts and decentralized verification, the Taiko protocol achieves efficient expansion of Ethereum while maintaining its decentralized and secure features.
2.3.1 Functions and features
1. Protocol rule definition
Rule setting: The Taiko protocol defines all operating rules of Rollup, including transaction processing, verification, and status updates. All transactions must follow these rules to ensure the consistency of network operation.
Smart contract execution: The agreement is implemented through smart contracts deployed on Ethereum, ensuring that all rules and operations are open and transparent.
2. Transaction verification and status update
Transaction verification: After each transaction is submitted, the Taiko protocol will verify it according to predefined rules to ensure the validity and correctness of the transaction.
Status update: After verification is completed, the protocol will update the transaction status of Layer 2 and transmit the relevant data to Ethereum Layer 1 to ensure status synchronization and consistency.
3. Decentralization and Security
Decentralized Validators: The Taiko protocol supports a decentralized validator model where anyone can participate in the validation process. This decentralized approach enhances the security and integrity of the network.
Zero-knowledge proof: The protocol uses zero-knowledge proof technology (zkSNARKs or zkSTARKs) to verify transactions without exposing the specific content of the transaction, ensuring the privacy and security of the transaction.
4. Data transfer and processing
Data submission: Transaction data and the generated zk proof will be submitted to Ethereum Layer 1 for verification by L1 validators.
Data processing: After L1 verification, the protocol updates the status of Layer 2 based on the feedback to ensure that all participants see consistent transaction results.
5. Smart contract function
Data transmission mechanism: Smart contracts are responsible for transmitting transaction data and zk proofs between Layer 2 and Layer 1 to ensure data integrity and consistency.
Protocol verification: The smart contract is also responsible for verifying the zk proof to ensure the validity and correctness of the transaction.
6. Governance and community driven
Decentralized Autonomous Organization (DAO): The governance of the Taiko Protocol is managed by the Taiko DAO, which is composed of TKO token holders who decide on major updates and changes to the protocol through voting.
Community participation: The governance and development of the protocol is highly dependent on the participation and contribution of the community to ensure that the decision-making of the protocol is transparent, fair and inclusive.
2.3.2 Working principle:
1. Transaction submission and execution
The user submits a transaction on Layer 2, and the transaction is first executed on the Layer 2 Rollup node.
After the transaction is executed, the corresponding transaction data and status updates are generated.
2. Zero-knowledge proof generation
Generate zero-knowledge proofs to verify the correctness of transactions. These proofs do not reveal the specific content of the transactions, ensuring privacy.
The generated zk proof and transaction data will be submitted to Ethereum Layer 1.
3. L1 Verification and Status Update
Ethereum Layer 1 validators verify the submitted zero-knowledge proofs to ensure the validity and correctness of the transactions.
After verification, the status of Layer 2 will be updated based on the feedback from L1 to ensure the consistency and security of the entire network.
4. Governance and Protocol Updates
Taiko DAO ensures community participation and transparent governance by voting on updates and changes to the protocol.
All protocol updates will be implemented through smart contracts to ensure that the rules are open and transparent.
2.3.3 Advantages and Application Scenarios
1. Improve the scalability of Ethereum
Through Layer 2 Rollup technology and zero-knowledge proof, the Taiko protocol significantly improves the scalability of the Ethereum network and can handle more transactions and meet higher transaction needs.
2. Reduce transaction costs
Processing transactions on Layer 2 reduces reliance on the Ethereum mainnet, thereby reducing transaction fees, and is particularly suitable for application scenarios involving high-frequency, small-value transactions.
3. Enhanced security and privacy
Zero-knowledge proof technology ensures the privacy and security of transactions, avoids the leakage of transaction data, and maintains the decentralized nature of the network.
4. Community-driven and transparent governance
Through Taiko DAO, community members can participate in the governance and decision-making of the protocol, ensuring that the development direction of the protocol is in line with the interests and needs of the community.
2.4 Based on Contestable Aggregation (BCR)
Base Competitive Rollup (BCR) is a key innovation in the Taiko protocol, which aims to enhance the decentralization and security of the network. The following is a detailed introduction to BCR:
2.4.1 Core Concepts
BCR is an innovative Layer 2 solution that aims to improve the decentralization and security of blockchain networks through a competitive mechanism. In the BCR model, multiple participants can compete to propose and verify blocks, eliminating the control of a single entity over the network.
2.4.2 Working Mechanism
1. Competitive Proposal
Proposers: Anyone can become a proposer and submit a block proposal. Proposers need to package user transactions and generate zero-knowledge proofs (zkProofs).
Proposal competition: Multiple proposers can compete to submit blocks at the same time, ensuring that the generation and submission process of each block is decentralized, with no single centralized control point.
2. Verification process
Verifiers: Verifiers are responsible for verifying the blocks and zero-knowledge proofs submitted by the proposer. They ensure the security of the network by verifying the correctness and legitimacy of the transaction.
Competitive Validation: Multiple validators can compete to validate blocks, which increases the security of the network because competition between validators ensures the accuracy and transparency of the validation process.
2.4.3 Advantages of BCR
1. Enhanced decentralization
Open participation: The BCR model allows anyone to participate in block proposals and verification, eliminating reliance on a few entities and enhancing the decentralization of the network.
Censorship resistance: With multiple proposers and validators competing, it is difficult for any single entity to censor or control the network.
2. Improved security
Multi-validation: Through a competitive validation mechanism, multiple validators independently validate blocks, which ensures the reliability and security of the validation process.
Reduce single point of failure: The BCR model reduces the risk of single point of failure because the operation of the network does not depend on a single proposer or validator.
3. Economic Incentives
Fair competition: Proposers and validators compete for economic rewards, which ensures that participants are motivated to provide honest and efficient services.
Fee Burning: Proposers need to burn a certain amount of TKO tokens to submit blocks, which helps control token supply and stabilize token value.
2.5 Booster-Based Rollup (BBR)
Based Booster Rollup (BBR) is a key component of the Taiko protocol, which aims to further expand the capabilities of the Ethereum network by improving transaction execution and storage efficiency. The design goal of BBR is to create a seamless user and developer experience, enabling transactions to be executed as if on Layer 1 (L1) while maintaining their own storage on Layer 2 (L2).
2.5.1 Core Features and Working Principles
1. Double-layer structure
Separation of execution and storage: BBR implements a two-layer structure of transaction execution and storage. This design enables transactions to be executed efficiently on L2 while maintaining the necessary security and decentralization on L1.
Seamless integration with L1: Through this two-layer structure, BBR allows smart contracts to maintain consistent addresses on L1 and all BBR, simplifying the deployment and interaction process.
2. Compatibility and scalability
Fully compatible with Ethereum: BBR is fully compatible with Ethereum's existing architecture, including hash functions, state trees, and gas fees for each opcode. This means that existing Ethereum smart contracts and dApps can be seamlessly migrated to BBR.
Enhanced Scalability: BBR is designed to improve the scalability of Ethereum, making transactions faster and more cost-effective, thereby supporting a larger scale of users and applications.
3. Booster function
Versatility: BBR’s booster functionality can enhance any type of rollup, whether optimistic or zero-knowledge, to take advantage of the scaling capabilities provided by BBR.
Enhanced Ethereum scalability: With BBR, any rollup can directly enhance Ethereum’s scalability, enabling it to handle more transactions and more complex applications.
2.5.2 Technical Details
1. Consistency of smart contracts
Address consistency: BBR ensures that the smart contract addresses on L1 and L2 remain consistent, which means that smart contracts deployed by developers on L1 can run seamlessly on L2, simplifying the development and deployment process.
Simplified interaction: The interaction process between users and developers at different layers is simplified, ensuring consistency in user experience and convenience in the development process.
2. Economic incentives
Fee Structure: BBR’s fee structure is designed to ensure that transaction fees are low enough to encourage use by users and developers, while ensuring that the network’s economic incentives are strong enough to maintain the enthusiasm of validators and proposers to participate.
Reward distribution: Through a reasonable reward distribution mechanism, BBR ensures that all participants receive fair incentives in the network, thereby maintaining the decentralization and security of the network.
2.5.3 Advantages
1. Improve transaction efficiency
Fast transaction processing: By executing transactions on L2, BBR significantly increases transaction processing speed and reduces the burden on the Ethereum mainnet.
Reduced transaction costs: Executing transactions on L2 significantly reduces transaction costs, making small transactions and high-frequency transactions more economically feasible.
2. Enhanced network security
Decentralized Verification: BBR adopts a decentralized verification mechanism to ensure the security and decentralization of the network, avoiding single point failure and censorship risks.
Multiple verification mechanism: Through the multiple verification mechanism, BBR provides higher security guarantees to ensure the correctness and legality of all transactions.
3. Optimize user experience
Seamless user experience: BBR is designed to ensure that users have the same experience as L1 when using L2 networks, without having to worry about complex technical details.
Easy to develop and deploy: Developers can use existing Ethereum tools and infrastructure to easily develop and deploy smart contracts and dApps on BBR.
3. TKO Token
TKO is the native token of the Taiko network, designed to reward block validators and as part of the transaction fees in the Taiko network.
3.1 Token Function
Transaction Fees: When users conduct transactions on the Taiko Layer 2 network, they pay transaction fees, which will be collected by block proposers. Block proposers must burn a certain amount of TKO tokens and pay Ethereum validators ETH to ensure that their blocks are included in the Ethereum Layer 1 network.
Reward Mechanism: TKO tokens are used to reward block validators who ensure the validity of transactions by generating and verifying zero-knowledge proofs (zkProofs). The transparency of TKO tokens ensures a user experience similar to that on the Ethereum network.
Margin system: TKO tokens are used in the margin system of BCR and BBR to ensure the integrity and timeliness of network operations. Confiscated margins are not lost but redirected to the Taiko Treasury of L1.
Governance role: TKO token holders can participate in network governance, influence network upgrades and manage the Taiko Treasury, maintaining the permissionless nature of the network on both L1 and L2.
3.2 Token Supply
Total supply: 1 billion TKO tokens with 18 decimal places.
Token Management: The minting or destruction of TKO tokens is strictly carried out in accordance with governance regulations, ensuring that supply changes are transparent and reflect the consensus of token holders.
3.3 Token Allocation
DAO Treasury：20%
Guardian Prover Bonds：2%
Grants & RetroPGF：5%
Trailblazer airdrop: 10%
Agreement Guild Airdrop: 1%
Genesis Airdrop: Up to 5%
Liquidity and market making: 5%
Investors: 11.62%
Taiko Labs/Core Team: 20%
Taiko Foundation Reserve: 16.88%
Taiko Official Prover Bonds: 1.5%
3.4 Token Airdrop
1. Test network interaction:
To increase the chances of getting TKO token airdrops, users can participate in Taiko’s testnet to increase the likelihood of airdrops by interacting with its testnet.
Taiko has already conducted several testnets, the latest of which is Alpha3, which aims to test the interaction between proposers and validators, as well as the new fee and incentive system.
2. Steps to participate:
Add Networks: Add the Sepolia network and Taiko’s Alpha3 testnet to your MetaMask wallet.
Get Testnet ETH: Get Sepolia ETH from the faucet.
Mint and bridge tokens: Connect your wallet, mint Bull and Horse tokens, and add these tokens to your MetaMask, then bridge ETH, BLL, and Horse from Sepolia to Taiko.
Swapping and Providing Liquidity: In Taiko’s swap test, import Taiko’s token list, swap and provide liquidity for some tokens.
Developer tasks: For users with some development experience, you can deploy and verify contracts, or build dApps according to the guide.
Complete tasks: Visit Taiko's Galxe page and complete tasks like transferring money, exchanging funds, visiting pages, or answering quizzes to earn points that may be converted into future rewards.
4. Community and Ecosystem Development
According to Taiko’s official website, more than 90 projects have been integrated into the ecosystem.
These projects span a variety of sectors, including wallets (with the notable EVM-native wallet), NFT marketplaces (with single- and multi-chain options), infrastructure (such as RPC and Oracle services), and DeFi applications. As a Type 1 Layer2 solution, Taiko provides a seamless migration path for Ethereum dApps, requiring little to no adjustment.
Additionally, the Taiko team introduced a test token faucet, an official token, and an NFT bridge, as well as an exchange function and an explorer.
As of May 23, 2024, Taiko has 933,000 fans on the X (Twitter) platform, while Discord has accumulated 9.094 million members. In comparison, Optimism has 640,000 followers and Arbitrum has 980,000 followers. Taiko's community has shown significant growth and engagement.
5. Team/financing
5.1 Team
The Taiko team consists of experienced blockchain experts and engineers with deep background and rich experience in blockchain technology, cryptography and distributed systems.
Co-founder Daniel Wang was the founder and former CEO of Loopring, an Ethereum-based decentralized trading protocol that uses zero-knowledge proof technology for expansion. As a veteran in the blockchain industry, Daniel has extensive experience in blockchain technology and decentralized finance (DeFi). In Taiko, Daniel Wang is responsible for overall strategic planning and technical guidance to promote the development and innovation of the project.
Brecht Devos is the co-founder and head of the zero-knowledge research and development team. He was the former chief architect of Loopring and has a deep background in cryptography and blockchain technology. He has extensive practical experience in zero-knowledge proof technology and blockchain protocol design. In Taiko, Brecht leads the zero-knowledge research and development team, focusing on the research and development and implementation of zkRollup and zkEVM technologies.
Organizational Structure
To ensure the effective operation of the Taiko network and compliance with regulatory requirements, Taiko has established a number of related entities and organizations, among which several key entities play key roles:
Taiko Labs: A dedicated R&D team focused on advancing the Taiko protocol.
Taiko Treasury: Funded by the revenue generated by the Taiko Protocol, the treasury is the financial resource for the project.
Taiko DAO: This organization is composed of holders of Taiko tokens (TKO) and exercises voting rights to manage various aspects of the Taiko protocol. This includes decisions regarding smart contract upgrades, TKO parameters, and other protocol-related matters.
Taiko Foundation: As a legal entity based in the Cayman Islands, the Taiko Foundation oversees the growth and development of the Taiko Protocol and its broader ecosystem. The Foundation exclusively provides financial support for technology development, ecosystem expansion, maintenance, collaboration with service providers, event management, and other initiatives on behalf of Taiko DAO and token holders through grants or alternative financing methods.
Taiping Island Security Council: The Security Council is composed of individuals and entities selected by the Taiping Island Affairs Bureau and is responsible for taking prompt action in emergency situations as required by the Taiping Island Protocol. The Security Council's primary mission is to maintain the security and integrity of Taiko, authorizing them to implement upgrades or modifications to achieve this goal.
5.2 Financing
Initial and subsequent financing
Amount: $22 million
Time: Including two rounds of financing announced on June 8, 2023
Investors: Led by Sequoia China and Generative Ventures respectively, the round included participation from BAI Capital, GGV Capital, GSR Markets, IOSG Ventures, KuCoin Ventures, Mirana Ventures, OKX Ventures, Skyland Ventures, Token Bay Capital, Yunqi Partners, and other investors and notable contributors.
Latest Financing
Amount: $15 million
Date: March 2, 2024
Investors: Led by Lightspeed, Faction, Hashed, Generative Ventures, and Token Bay Capital, other investors include Wintermute Ventures, Presto Labs, Flow Traders, Amber Group, OKX Ventures, GSR, and WW Ventures.
The funds are used to deploy and optimize multiple testnets, including Alpha1, Alpha2, and Alpha3 testnets, to verify and improve network design, and to prepare for the mainnet launch at the end of the first quarter of 2024, including infrastructure construction and technical support.
6. Project Evaluation
6.1 Track Analysis
The Taiko project belongs to the Ethereum Layer 2 expansion solution track, specifically the zkRollup technology field. Taiko provides an efficient, secure and decentralized blockchain expansion solution through zero-knowledge Ethereum virtual machine (zkEVM) technology, aiming to solve Ethereum's scalability issues while maintaining full compatibility with Ethereum.
In the field of Ethereum Layer 2 scaling solutions, especially zkRollup technology, there are several similar projects:
1.zkSync
Introduction: zkSync is an Ethereum Layer 2 scaling solution based on zkRollup technology, designed to provide fast and low-cost transactions while maintaining the security and decentralization of Ethereum.
Features: Fully compatible with Ethereum, supports smart contracts, and focuses on user experience and developer friendliness.
2.StarkNet
Introduction: StarkNet is a Layer 2 expansion solution developed by StarkWare based on STARK (Scalable Transparent Argument of Knowledge) technology.
Features: Uses STARK technology for zero-knowledge proof, provides high-throughput and low-latency transactions, and supports complex smart contracts.
3.Loopring
Introduction: Loopring is a zkRollup project focusing on decentralized exchange (DEX) protocols, committed to providing efficient trading experience and low fees.
Features: Through zkRollup technology, high-throughput decentralized transactions are achieved, ensuring the security and privacy of user assets.
6.2 Project Advantages
Permissionless and Decentralized: Taiko stands out as a pioneering rollup-based solution by eliminating the centralized sequencer and reliance on Ethereum validators for transaction and block ordering.
Seamless developer experience: Taiko’s use of ZK-EVM (Type 1 ZK-EVM) ensures compatibility with Ethereum execution standards, laying the foundation for a scalable Ethereum ecosystem.
Highly adaptable and future-proof: As a contentious Rollup, Taiko empowers application chains to customize their proof systems and accept more efficient proofs as technology advances without modifying Taiko’s core protocol.
Strong community support: Taiko's multiple testnets (Alpha1, Alpha2, and Alpha3) encourage community members to participate. By interacting with the testnet, users can obtain airdrop qualifications. This not only increases community activity, but also helps verify and optimize network design.
Wide range of partners: Taiko has established strategic partnerships with a number of leading blockchain projects and companies to jointly promote the development of the ecosystem. These partners provide important support in technology research and development, marketing and community building.
Financing support
Adequate funding: Taiko has raised a total of US$37 million through multiple rounds of financing, and has received support from many well-known investment institutions including Lightspeed, Faction, Hashed, Generative Ventures and Token Bay Capital. Adequate funding provides a solid guarantee for technology research and development, team expansion and infrastructure construction.
6.3 Insufficient projects
1. Market competition
Fierce competitive environment: In the field of Ethereum Layer 2 expansion solutions, there are multiple strong competitors, such as zkSync, StarkNet, Loopring, Optimism, and Arbitrum. These projects are also actively developing their technologies and ecosystems, and Taiko faces fierce market competition.
Competitive advantages: Although Taiko has certain advantages in technological innovation and community building, it is still a challenge to stand out among many competitors.
2. Technical Implementation
Technical complexity: zkEVM and zkRollup technologies are inherently complex and require a lot of R&D investment and technical support. There are still technical challenges in achieving fully decentralized and efficient zero-knowledge proofs.
Mainnet launch: Taiko’s mainnet is scheduled to be launched at the end of the first quarter of 2024. Although multiple testnets have been successful, the smooth launch and widespread application of the mainnet still need further verification.
3. User adoption
User experience: Although Taiko provides many technical advantages, how to improve the user experience and attract more users and developers to use its network is still an important issue. In particular, continuous optimization is needed in terms of user habits and compatibility of developer tools.
Education and outreach: More education and outreach activities are needed to help users and developers understand and use the Taiko Network, especially in terms of complex zero-knowledge proof technology and decentralized governance models.
7. Conclusion
All in all, the Taiko project provides efficient, secure, and decentralized scaling solutions for Ethereum through innovative zkRollup and zkEVM technologies. With the support of multiple rounds of financing and the governance model of a decentralized autonomous organization (DAO), Taiko has made significant progress in technology research and development and community building. Despite market competition and technical challenges, Taiko is expected to occupy an important position in the field of blockchain expansion solutions by continuing to optimize technology and expand the ecosystem, providing users and developers with an efficient and secure blockchain environment.
