### Ethereum’s Taiko Protocol: A Breakthrough in Layer 2 Solutions?

The current market lacks a dominant Ethereum Layer 2 project, despite numerous protocols striving to develop superior Layer 2 technologies. Ethereum core developer Vitalik Buterin recently garnered attention by becoming the first block proposer for the Taiko protocol, further elevating interest in this emerging technology.

Taiko is an Ethereum Layer 2 chain featuring two key characteristics: Based Rollups and Multi-Proofs. Traditional Layer 2 protocols operate by sequencing transactions on the Layer 2 chain, where these transactions are then validated before only the final records are written on Ethereum.

### Decentralization, Security, and Scalability

However, Taiko differentiates itself with its Based Rollup mechanism by processing the sequencing on the Ethereum network itself. This means that within Taiko, only the transaction requests and zero-knowledge (ZK) proofs are handled—a streamlined process designed to maintain Ethereum’s robust security while enhancing scalability through rollups.

Ethereum’s Proof of Stake (PoS) validation process utilizes multiple clients. The system employs four different clients to ensure that if one client goes down, the network can still function smoothly. Taking a page from Ethereum’s book, Taiko adopts a similar Multi-Proof structure. The protocol utilizes various technologies, such as Powdr, SGX, and RISC, for compressing and verifying transactions through ZK rollups. This multifaceted approach enhances the stability and security of block verification, ensuring that reliability and security are maintained even if one proof system encounters issues.

### Integration with Ethereum

Taiko’s meticulous design aims to preserve scalability, security, and decentralization. It is fully compatible with the Ethereum Virtual Machine (EVM) and complements the Ethereum mainnet, suggesting significant improvements over existing Layer 2 protocols. This compatibility and enhanced design likely explain why Vitalik Buterin chose to be Taiko’s inaugural block proposer.

### Navigating the Layer 2 Ecosystem

The fast-evolving Layer 2 ecosystem faces a critical dilemma: “While newer projects can leverage superior technologies, older projects benefit from network effects.” For protocols like Taiko, presenting a novel structure, overcoming the established network effects of competitors requires significant achievements. By having Vitalik Buterin as its first block proposer, Taiko has captivated the Web3 ecosystem’s attention. Its potential to expand both Ethereum and the Layer 2 market remains an intriguing development to watch.

Patrick Hyeonjae Park, Block Media