Taiko aims to extend Ethereum through zkEVM technology.
By: Cha Guan Xiao Er
1. Project Introduction
Taiko is a decentralized Ethereum equivalent zkRollup project, aiming to extend Ethereum through zkEVM technology.
Taiko is committed to being a fully equivalent zkRollup to Ethereum, allowing developers and users to leverage the powerful features of Ethereum Layer 1 (L1) without changing existing decentralized applications (dApps). As a fully equivalent zkRollup to Ethereum, Taiko allows developers and users to utilize the powerful features of Ethereum Layer 1 (L1) without changing existing dApps.
Key Features:
Fully compatible zkEVM type 1: Taiko adopts the type 1 zkEVM, fully compatible with Ethereum, allowing developers to migrate dApps between Ethereum and Taiko without worrying about smart contract failures.
Open source: All of Taiko's source code can be viewed, built, or edited on GitHub, allowing blockchain development to be inclusive of not only a small team but also the global community and developers.
Fully decentralized: In addition to high compatibility with EVM, Taiko also highly values the decentralization of the protocol, planning to generate zkPs through decentralized proposers and validators submitting blocks and proofs.
2. Core Technology Structure
2.1 zkEVM Circuit
The zkEVM (Zero-Knowledge Ethereum Virtual Machine) circuit is one of the core components of the Taiko technical architecture. It uses zero-knowledge proofs (ZKPs) to verify the accuracy and completeness of Ethereum Virtual Machine (EVM) computations. Through zkEVM, Taiko can extend Ethereum without changing existing smart contracts and decentralized applications (dApps), while maintaining the security, decentralization, and compatibility of Ethereum.
2.1.1 Functions and Features
1. Zero-Knowledge Proofs (ZKPs)
Transaction verification: zkEVM circuit uses ZKPs to verify the correctness of transactions without leaking specific transaction data. This reduces the data processing load on the Ethereum mainnet, lowering transaction costs and increasing transaction speed.
Confidentiality: ZKPs ensure the privacy of transactions, with only verified proofs being submitted to the Ethereum mainnet.
2. Full EVM Opcode Compatibility
Support for all EVM opcodes: zkEVM circuit fully supports all EVM opcodes, allowing developers to 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 directly used on Taiko, greatly facilitating developers.
3. Decentralization and Security
Decentralized verification: zkEVM circuit supports a decentralized validator model, allowing anyone to 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 circuit utilizes Ethereum Layer 1 validators to order transactions, ensuring the inheritance of Ethereum's decentralization and security properties.
4. Efficiency and Scalability
Reduced data processing load: By executing transactions on Layer 2 and generating zero-knowledge proofs, the data processing load on the Ethereum mainnet is reduced, improving transaction efficiency and scalability.
Fast generation of zk proofs: The zkEVM circuit is designed to optimize the speed of zk proof generation, ensuring efficient processing of a large number of transactions.
5. Smart Contracts and Protocol Rules
Smart contract execution: The zkEVM circuit supports 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: The zkEVM circuit, through integration with Ethereum L1, ensures that all proofs and transaction states undergo strict verification, maintaining system consistency and security.
2.1.2 Operation Principle
1. Transaction Execution and Data Collection
Transactions are first executed on Layer 2, generating the corresponding transaction data.
This transaction data is collected and prepared for the generation of zk proofs.
2. Generation of Zero-Knowledge Proofs
The zkEVM circuit utilizes zkSNARKs or zkSTARKs technology to generate zero-knowledge proofs, which can verify the correctness of transactions without revealing specific content.
After proof generation, the proofs and related data are submitted to Ethereum L1.
3. Verification and State Update
Ethereum L1 validators verify the submitted zero-knowledge proofs to ensure their validity.
Once the proofs pass verification, the transaction state is updated on the Ethereum mainnet, ensuring that all participants see consistent transaction results.
2.2 Layer 2 Rollup Nodes
Layer 2 Rollup nodes are key components in the Taiko technical architecture, responsible for managing and executing transactions on Layer 2, while interacting with Ethereum Layer 1 (L1). Through Layer 2 Rollup technology, Taiko can 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, processing these transactions first on the Layer 2 network, reducing the direct burden on the Ethereum mainnet.
Data collection: Nodes collect data transmitted from Ethereum Layer 1 and process transactions and state updates based on this data.
2. State Management
State display: After each transaction execution, Layer 2 Rollup nodes update and display the transaction state, ensuring that all participants see consistent state information.
State maintenance: By managing the state after transaction execution, the nodes ensure network consistency and data integrity.
3. Protocol Rule Execution
Protocol verification: Layer 2 Rollup nodes execute transactions and verification processes based on Taiko protocol rules. These rules ensure the validity of transactions and the security of the network.
Smart contract support: Nodes can execute smart contracts deployed on Ethereum Layer 1, using these contracts for data transmission and zk proof verification.
4. Efficiency and Scalability
Increased throughput: By executing transactions on Layer 2, the network's transaction processing capacity is significantly increased, reducing congestion on the Ethereum mainnet.
Cost reduction: Processing transactions on Layer 2 can significantly reduce transaction fees, making small-value transactions more economically viable.
5. Decentralization and Security
Decentralized Verification: Layer 2 Rollup nodes support a decentralized validator model, allowing anyone to participate in transaction verification and zk proof generation, ensuring the decentralization and security of the network.
Data Transmission: Nodes are responsible for transferring transaction data from Layer 2 to Ethereum Layer 1 and updating the state based on L1 feedback.
2.2.2 Operation Principle
1. Data Collection and Transaction Execution
Transaction Reception: Nodes receive transactions submitted by users on Layer 2 and execute these transactions according to protocol rules.
State Update: After transaction execution, nodes update the transaction state and maintain the latest state information on Layer 2.
2. Generation of Zero-Knowledge Proofs
Generation of zk Proofs: Nodes generate zero-knowledge proofs for each transaction, ensuring the correctness and privacy of transactions.
Proof Submission: The generated zk proofs and related data are submitted to Ethereum Layer 1 for verification by L1 validators.
3. Verification and State Update
L1 Verification: Ethereum Layer 1 validators verify the submitted zero-knowledge proofs to ensure the validity of transactions.
State Synchronization: Once the proofs pass verification, Layer 2 Rollup nodes synchronize and update the state based on L1 feedback, ensuring network consistency.
Advantages and Use Cases:
1. Enhancing Ethereum Scalability
By processing a large number of transactions on Layer 2, Taiko's Layer 2 Rollup nodes can significantly enhance the scalability of the Ethereum network to meet higher transaction demands.
2. Reducing Transaction Costs
Executing transactions and generating zk proofs on Layer 2 reduces reliance on the Ethereum mainnet, thereby lowering transaction fees, especially suitable for high-frequency low-value transaction scenarios.
3. Enhancing Security and Privacy
Zero-knowledge proof technology ensures the privacy and security of transactions, avoiding the leakage of transaction data while maintaining the decentralized nature of the network.
2.3 Taiko Protocol
The Taiko protocol is also a core component of the Taiko technical architecture, defining and enforcing the rules of Layer 2 Rollup to ensure transaction correctness and network security. Through smart contracts and decentralized verification, the Taiko protocol achieves efficient scalability of Ethereum while maintaining its decentralization and security features.
2.3.1 Functions and Features
1. Protocol Rule Definition
Rule Setting: The Taiko protocol defines all operation rules of Rollup, including transaction processing, verification, and state updates. All transactions must adhere to these rules to ensure network operational consistency.
Smart Contract Execution: The protocol is implemented through smart contracts deployed on Ethereum, ensuring transparency of all rules and operations.
2. Transaction Verification and State Update
Transaction Verification: After each transaction submission, the Taiko protocol verifies the transactions based on predefined rules to ensure their validity and correctness.
State Update: Upon verification, the protocol updates the transaction state on Layer 2 and transfers relevant data to Ethereum Layer 1 to ensure state synchronization and consistency.
3. Decentralization and Security
Decentralized Validators: The Taiko protocol supports a decentralized validator model, allowing anyone to participate in the verification process, enhancing network security and integrity.
Zero-Knowledge Proofs: The protocol utilizes zero-knowledge proof technology (zkSNARKs or zkSTARKs) to verify transactions without exposing their specific content, ensuring transaction privacy and security.
4. Data Transmission and Processing
Data Submission: Transaction data and generated zk proofs are submitted to Ethereum Layer 1 for verification by L1 validators.
Data Processing: After L1 verification, the protocol updates the state on Layer 2 based on feedback, ensuring that all participants see consistent transaction results.
5. Smart Contract Functionality
Data Transmission Mechanism: Smart contracts are responsible for transmitting transaction data and zk proofs between Layer 2 and Layer 1, ensuring data integrity and consistency.
Protocol Verification: Smart contracts also verify zk proofs to ensure the validity and correctness of transactions.
6. Governance and Community-Driven
Decentralized Autonomous Organization (DAO): The governance of the Taiko protocol is managed by Taiko DAO, consisting of TKO token holders who vote on significant protocol updates and changes.
Community Engagement: The governance and development of the protocol heavily rely on community participation and contributions, ensuring transparent, fair, and inclusive protocol decision-making.
2.3.2 Operation Principle
1. Transaction Submission and Execution
Users submit transactions on Layer 2, which are first executed on Layer 2 Rollup nodes.
After transaction execution, corresponding transaction data and state updates are generated.
2. Generation of Zero-Knowledge Proofs
Zero-knowledge proofs are generated to verify the correctness of transactions without exposing specific content, ensuring privacy.
The generated zk proofs and transaction data are submitted to Ethereum Layer 1.
3. L1 Verification and State Update
Ethereum Layer 1 validators verify the submitted zero-knowledge proofs to ensure the validity and correctness of transactions.
Upon verification, the state on Layer 2 is updated based on L1 feedback, ensuring network consistency and security.
4. Governance and Protocol Updates
Taiko DAO decides on protocol updates and changes through voting, ensuring community participation and transparent governance.
All protocol updates are implemented through smart contracts to ensure transparent rules.
2.3.3 Advantages and Use Cases
1. Enhancing Ethereum Scalability
Through Layer 2 Rollup technology and zero-knowledge proofs, the Taiko protocol significantly enhances the scalability of the Ethereum network to handle more transactions and meet higher transaction demands.
2. Reducing Transaction Costs
Processing transactions on Layer 2 reduces reliance on the Ethereum mainnet, thereby lowering transaction fees, especially suitable for high-frequency low-value transaction scenarios.
3. Enhancing Security and Privacy
Zero-knowledge proof technology ensures the privacy and security of transactions, avoiding the leakage of transaction data while maintaining the decentralized nature of the network.
4. Community-Driven and Transparent Governance
Through Taiko DAO, community members can participate in protocol governance and decision-making, ensuring that the protocol's development aligns with the interests and needs of the community.
2.4 Base Competitive Rollup (BCR)
Base Competitive Rollup (BCR) is a key innovation in the Taiko protocol, aiming to enhance the decentralization and security of the network through competitive mechanisms. Below is a detailed introduction to BCR:
2.4.1 Core Concept
BCR is an innovative Layer 2 solution designed to enhance the decentralization and security of blockchain networks through competitive mechanisms. In the BCR model, multiple participants can compete to propose and validate blocks, eliminating control by a single entity.
2.4.2 Operation Mechanism
1. Competitive Proposal
Proposers: Anyone can become a proposer and submit block proposals. Proposers need to package user transactions and generate zero-knowledge proofs (zkProofs).
Proposal Competition: Multiple proposers can compete to submit blocks, ensuring that the generation and submission process of each block is decentralized, without a single centralized control point.
2. Verification Process
Verifiers: Verifiers are responsible for verifying the blocks and zero-knowledge proofs submitted by proposers. They verify the correctness and legality of transactions to ensure network security.
Competitive Verification: Multiple verifiers can compete to verify blocks, increasing network security by ensuring the accuracy and transparency of the verification process.
Advantages of BCR
1. Enhanced Decentralization
Open Participation: The BCR model allows anyone to participate in block proposal and verification, eliminating reliance on a few entities and enhancing network decentralization.
Censorship Resistance: With multiple proposers and verifiers competing, it becomes difficult for any single entity to censor or control the network.
2. Improved Security
Multiple Verification: Through competitive verification, multiple verifiers independently verify blocks, ensuring the reliability and security of the verification process.
Reduced Single Point of Failure: The BCR model reduces the risk of single points of failure, as the network's operation does not depend on a single proposer or verifier.
3. Economic Incentives
Fair Competition: Proposers and verifiers receive economic rewards through competition, ensuring that participants are incentivized to provide honest and efficient services.
Fee Burning: Proposers need to burn a certain amount of TKO tokens to submit blocks, helping control token supply and stabilize token value.
2.5 Based Booster Rollup (BBR)
Based Booster Rollup (BBR) is a key component of the Taiko protocol, aiming to further expand the capabilities of the Ethereum network by improving transaction execution and storage efficiency. BBR is designed to create a seamless user and developer experience, allowing transactions to be executed on Layer 2 (L2) while maintaining their own storage.
2.5.1 Core Features and Operation Principle
1. Two-Layer Structure
Separation of Execution and Storage: BBR implements a two-layer structure for transaction execution and storage, allowing transactions to be efficiently executed on L2 while maintaining necessary security and decentralization on L1.
Seamless Integration with L1: Through this two-layer structure, BBR ensures that smart contracts can maintain consistent addresses on L1 and all BBRs, simplifying deployment and interaction processes.
2. Compatibility and Scalability
Full Compatibility with Ethereum: BBR is fully compatible with Ethereum's existing architecture, including hash functions, state trees, and gas costs for each opcode. This means that existing Ethereum smart contracts and dApps can seamlessly migrate to BBR.
Enhanced Scalability: BBR is designed to improve Ethereum's scalability, enabling faster transaction processing and lower fees to support larger-scale users and applications.
3. Booster Functionality
Versatility: BBR's booster functionality can enhance any type of rollup, whether optimistic or zk-rollup, leveraging BBR's scaling capabilities.
Enhanced Ethereum Scalability: Through BBR, any rollup can directly enhance Ethereum's scalability to handle more transactions and more complex applications.
2.5.2 Technical Details
1. Consistency of Smart Contracts
Address Consistency: BBR ensures that smart contract addresses on L1 and L2 remain consistent, allowing contracts deployed on L1 to seamlessly operate on L2, simplifying development and deployment.
Simplified Interaction: The interaction process between users and developers across different layers is simplified, ensuring consistent user experience and developer convenience.
2. Economic Incentive Mechanism
Fee Structure: BBR's fee structure is designed to ensure that transaction fees are low enough to encourage user and developer usage, while also ensuring a strong economic incentive mechanism to maintain validator and proposer participation.
Reward Distribution: Through a fair reward distribution mechanism, BBR ensures that all participants receive equitable incentives in the network, maintaining decentralization and security.
2.5.3 Advantages
1. Improved Transaction Efficiency
Fast Transaction Processing: By executing transactions on L2, BBR significantly improves transaction processing speed, reducing the burden on the Ethereum mainnet.
Reduced Transaction Costs: Executing transactions on L2 significantly reduces transaction costs, making small-value and high-frequency transactions more economically viable.
2. Enhanced Network Security
Decentralized Verification: BBR adopts a decentralized verification mechanism to ensure network security and decentralization, avoiding single points of failure and censorship risks.
Multiple Verification Mechanism: Through a multiple verification mechanism, BBR provides higher security assurance, ensuring the correctness and legality of all transactions.
3. Optimized User Experience
Seamless User Experience: BBR's design ensures that users experience consistency between L2 and L1, without worrying about complex technical details.
Ease of Development and Deployment: Developers can easily develop and deploy smart contracts and dApps on BBR using existing Ethereum tools and infrastructure.
- TKO Token
TKO is the native token of the Taiko network, designed to reward block validators and serve as part of the transaction fees in the Taiko network.
3.1 Token Functions
Transaction Fees: Users need to pay transaction fees when transacting on the Taiko Layer 2 network, which are collected by block proposers. Proposers must burn a certain amount of TKO tokens and pay ETH to Ethereum validators to ensure 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.
Collateral System: TKO tokens are used in the collateral systems of BCR and BBR to ensure the integrity and timeliness of network operations. Confiscated collateral is not lost but redirected to the L1 Taiko Treasury.
Governance Role: TKO token holders can participate in network governance, influencing network upgrades and managing the Taiko Treasury to maintain the permissionless nature of the network on L1 and L2.
3.2 Token Supply
Total Supply: 1 billion TKO tokens, with 18 decimal places.
Token Management: The minting or burning of TKO tokens strictly follows governance regulations to ensure transparent supply changes that reflect the consensus of token holders.
3.3 Token Allocation
- DAO Treasury: 20%
- Guardian Prover Bonds: 2%
- Grants & RetroPGF: 5%
- Trailblazer Airdrop: 10%
- Protocol Guild Airdrop: 1%
- Genesis Airdrop: Up to 5%
- Liquidity & 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 Airdrops
1. Testnet Interaction:
To increase the chance of receiving TKO token airdrops, users can participate in Taiko's testnet and interact with it to enhance the likelihood of receiving airdrops.
Currently, Taiko has conducted multiple testnets, with the latest being Alpha3, aimed at testing the interaction between proposers and verifiers, as well as the new fee and incentive systems.
2. Participation Steps:
Add Network: Add the Sepolia network and Taiko's Alpha3 testnet to your MetaMask wallet.
Get Testnet ETH: Obtain Sepolia ETH from the faucet.
Mint and Bridge Tokens: Connect your wallet, mint Bull and Horse tokens, add these tokens to your MetaMask, and then bridge ETH, BLL, and Horse from Sepolia to Taiko.
Swap and Provide Liquidity: In Taiko's exchange test, import Taiko's token list, swap and provide liquidity for some tokens.
Developer Tasks: For users with some development experience, deploy and verify contracts, or build dApps following the guidelines.
Complete Tasks: Visit Taiko's Galxe page, complete tasks such as transfers, fund swaps, page visits, or quizzes to earn points, which may convert to future rewards.
- Community and Ecosystem Development
According to data from the official Taiko website, over 90 projects have already integrated into the ecosystem.
These projects cover various sectors, including wallets (with significant EVM-native wallets), NFT markets (with single-chain 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 with minimal or no adjustments required.
Additionally, the Taiko team has introduced testnet token faucets, official tokens and NFT bridges, as well as exchange functionality and a browser.
As of May 23, 2024, Taiko has 933k followers on X (Twitter) platform, while Discord has accumulated 9.094M members. In comparison, Optimism has 640k followers, and Arbitrum has 980k followers. Taiko's community has shown significant growth and engagement.
- Team/Financing Situation
5.1 Team
The Taiko team consists of experienced blockchain experts and engineers with deep backgrounds and rich experience in blockchain technology, cryptography, and distributed systems.
Co-founder Daniel Wang was the founder and former CEO of Loopring, a decentralized exchange protocol based on Ethereum that utilizes zero-knowledge proof technology for scaling. With a wealth of experience in blockchain technology and decentralized finance (DeFi), Daniel is responsible for overall strategic planning and technical guidance in Taiko, driving project development and innovation.
Brecht Devos, co-founder and head of the zero-knowledge research and development team, was the former Chief Architect at Loopring, with a deep background in cryptography and blockchain technology. He has 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 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 several related entities and organizations, with several key entities playing critical roles:
- Taiko Labs: A dedicated development team focused on advancing the Taiko protocol.
- Taiko Treasury: Income generated by the Taiko protocol funds this treasury, which serves as the project's financial resource.
- Taiko DAO: This organization consists of TKO token holders who exercise 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 specifically represents Taiko DAO and token holders, providing financial support for technical development, ecosystem expansion, maintenance, collaboration with service providers, event management, and other initiatives through grants or alternative financing methods.
- Taiko Island Security Council: Comprised of individuals and entities selected by the Taiko Affairs Bureau, the Security Council is responsible for taking rapid action in emergency situations as needed by the Taiko Protocol. The primary task of the Security Council 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, participants include 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
- Time: 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.
These funds are used for the deployment and optimization of multiple testnets, including Alpha1, Alpha2, and Alpha3 testnets, to validate and refine network design. This is in preparation for the mainnet launch at the end of the first quarter of 2024, including infrastructure development and technical support.
6. Project Evaluation
6.1 Market Analysis
The Taiko project belongs to the Ethereum Layer 2 scaling solution track, specifically in the field of zkRollup technology. Taiko provides an efficient, secure, and decentralized blockchain scaling solution through zero-knowledge Ethereum Virtual Machine (zkEVM) technology, aiming to address Ethereum's scalability issues while maintaining full compatibility with Ethereum.
In the Ethereum Layer 2 scaling solution field, especially in zkRollup technology, there are several similar projects:
1. zkSync
Introduction: zkSync is an Ethereum Layer 2 scaling solution based on zkRollup technology, aiming to provide fast, low-cost transactions while maintaining Ethereum's security and decentralization.
Features: Fully compatible with Ethereum, supports smart contracts, and focuses on user experience and developer-friendliness.
2. StarkNet
Introduction: StarkNet is a Layer 2 scaling solution based on STARK (Scalable Transparent Argument of Knowledge) technology developed by StarkWare.
Features: Uses STARK technology for zero-knowledge proofs, providing high throughput and low-latency transactions, and supports complex smart contracts.
3. Loopring
Introduction: Loopring is a zkRollup project focused on decentralized exchange (DEX) protocol, aiming to provide efficient trading experience and low fees.
Features: Achieves high throughput decentralized trading through zkRollup technology, ensuring the security and privacy of user assets.
6.2 Project Advantages
Permissionless and Decentralized: Taiko stands out as a pioneering aggregator-based solution by eliminating sequencers and relying 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.
High Adaptability and Future-Oriented: As a controversial Rollup, Taiko empowers application chains to customize their proof systems and accepts 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 participation, allowing users to qualify for airdrops by interacting with the testnets. This not only increases community engagement but also helps validate and optimize network design.
Wide Range of Partnerships: Taiko has established strategic partnerships with leading blockchain projects and companies to drive ecosystem development. These partners provide crucial support in technical development, marketing, and community building.
Funding Support
- Adequate Funding: Taiko has raised a total of $37 million through multiple rounds of financing, with support from well-known investment institutions including Lightspeed, Faction, Hashed, Generative Ventures, and Token Bay Capital. Sufficient funding provides solid support for technical development, team expansion, and infrastructure development.
6.3 Project Challenges
1. Market Competition
Intense Competitive Environment: In the Ethereum Layer 2 scaling solution field, there are several strong competitors such as zkSync, StarkNet, Loopring, Optimism, and Arbitrum. These projects are actively developing their technologies and ecosystems, placing Taiko under intense market competition pressure.
Competitive Advantage: While Taiko has certain advantages in technical innovation and community building, standing out among numerous competitors remains a challenge.
2. Technical Implementation
Technical Complexity: zkEVM and zkRollup technologies themselves are highly complex and require significant research and development investment and technical support. Achieving fully decentralized and efficient zero-knowledge proofs still faces technical challenges.
Mainnet Launch: While multiple testnets have been successful, the smooth launch and widespread adoption of the mainnet by Taiko still require further validation.
3. User Adoption
User Experience: Despite offering many technical advantages, improving user experience and attracting more users and developers to use its network remains an important issue for Taiko. Continuous optimization is needed, especially in user habits and developer tool compatibility.
Education and Promotion: More education and promotional activities are needed to help users and developers understand and use the Taiko network, especially in complex zero-knowledge proof technology and decentralized governance models.
7. Conclusion
In conclusion, the Taiko project provides an efficient, secure, and decentralized scaling solution for Ethereum through innovative zkRollup and zkEVM technologies. With support from multiple rounds of financing and a decentralized autonomous organization (DAO) governance model, Taiko has made significant progress in technical development and community building. Despite facing market competition and technical challenges, Taiko is poised to occupy a significant position in the blockchain scaling solution field by continuously optimizing its technology and expanding its ecosystem, providing users and developers with an efficient and secure blockchain environment.
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