Blockchain research firm FourPillars has praised Ethereum Layer 2 solution Taiko as a “true Layer 2 solution fully interoperable with Ethereum.” According to a report released by FourPillars on September 23, Ethereum, despite expanding blockchain technology’s potential with smart contracts and decentralized applications (dApps) since 2015, has faced scalability issues such as processing delays and rising fees due to increased network usage.

The explosive growth of dApps such as DeFi, games, and NFT marketplaces since 2020 has significantly increased Ethereum’s transaction volume, exposing the network’s performance limitations. In response, various scalability solutions have been proposed, with Ethereum Layer 2 (L2) projects gaining attention. However, many of these projects have moved towards building independent ecosystems rather than maintaining tight integration with Ethereum, leading to new issues.

# Taiko: Upholding Ethereum’s Decentralization as a Layer 2 Solution

In contrast, Taiko aims to address these problems by maintaining complete interoperability with Ethereum and pursuing sequencer decentralization. Taiko inherits Ethereum Mainnet’s security and decentralization while offering a developer-friendly environment. To achieve this, Taiko introduces a fully interoperable Type-1 EVM and employs a Based Rollup mechanism where Ethereum validators directly perform sequencer roles.

Type-1 EVM maximizes interoperability with Ethereum while utilizing zk-rollup technology to enhance scalability, setting Taiko apart from other zk-rollup L2 solutions. For instance, many zkEVM solutions modify the EVM or introduce new modules for performance, which reduces compatibility with Ethereum. Taiko prioritizes maintaining full interoperability with Ethereum, even at the expense of some performance and efficiency. Vitalik Buterin has expressed his hope that all ZK-EVMs will eventually unify as Type-1 through the advancement of ZK-EVM, aligning with Taiko’s direction towards becoming a true Ethereum L2 while preserving Ethereum’s philosophical values.

# Based Contestable Rollup: Aiming for Full Decentralization and Enhanced Security

Taiko introduces the concept of Based Rollup, allowing Ethereum validators to act as sequencers. Unlike existing L2 solutions that rely on centralized sequencers, Taiko’s structure enables distributed Ethereum validators to sequence transactions and blocks, thereby strengthening security and integration between L1 and L2. Taiko uses Based Contestable Rollup (BCR) and Based Booster Rollup (BBR) to maintain interoperability with Ethereum and address the fragmentation issue among L2 solutions.

BCR ensures blockchain finality and security by having multiple validators compete to validate blocks. This mechanism prevents a single point of failure and guarantees system transparency through a decentralized attestation system. BCR adopts a multi-proof system where validators verify each other’s proof results competitively, reducing the likelihood of erroneous proofs and enhancing the rollup system’s stability and security.

# BBR: Building an Environment for EVM Developers

BBR supports automatic scaling across all L2s with a single dApp deployment on L1, allowing developers to expand into L2 blockchains seamlessly using existing methodologies and infrastructure on Ethereum. This reduces the burden on developers to adapt to various L2 ecosystems and lowers the entry barriers to L2. Additionally, BBR facilitates cross-rollup interaction through networking between L1 and L2, addressing the fragmentation issue among rollups within the Ethereum ecosystem. This enhances scalability and ensures interoperability among rollups while maintaining L1 sequencing.

# Taiko’s Vision: Building an Interconnected Infrastructure and Community

Taiko focuses on community activation alongside technological advancements. To foster community engagement, Taiko operates the Trailblazers program, a loyalty scheme rewarding on-chain activities on Taiko Mainnet. The more users participate, the greater the rewards, aiming to establish an active ecosystem of users and developers. Taiko plans to build a decentralized ecosystem where developers and users can freely participate, fundamentally addressing Ethereum’s scalability issues.

FourPillars expects that “Taiko’s efforts will contribute to the continuous growth of the Ethereum ecosystem and the advancement of blockchain technology.”