# Active Discussions on “Based Rollups” at Dorahacks Workshop Address Ethereum Scalability
At a recent workshop organized by Dorahacks, an active discussion on “Based Rollups” centered on Ethereum scalability was held. The event featured participation from Taiko developers Jorrin and researcher Junger, shedding light on the current state and future prospects of rollup technology, while also sharing the challenges facing the sector.
Junger noted, “The Ethereum community has been addressing the scalability issue by adopting a rollup-centric roadmap rather than sharding for several years now.” He highlighted that approximately 200 rollups are currently operational but face issues such as a lack of interoperability, liquidity fragmentation, and the erosion of decentralization principles.
# Three Approaches to Address Scalability
To enhance Ethereum’s scalability, recent approaches include Shared Sequencers, Real-Time Proving, and Based Rollups.
Shared Sequencers: This method improves interoperability by allowing multiple rollups to operate on a common sequencer network. However, it requires careful implementation due to new security assumptions and the challenge of maintaining network effects.
Real-Time Proving: By leveraging ZK hardware acceleration, this approach aims to achieve real-time interoperability between rollups. Nevertheless, the high technical requirements and cost make it challenging to deploy in the immediate future.
Based Rollups: This technique uses Ethereum as the sequencer itself, eliminating the need for centralized sequencers. While it inherits Ethereum’s security and enhances network value, it encounters drawbacks such as block time limitations, reduced profitability, and security vulnerabilities.
Taiko is exploring various solutions to mitigate the weaknesses of Based Rollups. Jorrin and Junger explained, “We are pursuing preconfirmation through L1 proposers, introducing new fee structures, and applying multi-proving techniques to address scalability and enhance security.”
Preconfirmation offers L2 users pre-verified transactions, improving user experience by overcoming block time limitations. On the fee front, apportioning Maximal Extractable Value (MEV) revenues to block proposers incentivizes network participation.
To bolster security, Taiko integrates various proving mechanisms such as SGX, Zero-Knowledge Proofs, and Fraud Proofs. Junger stated, “Taiko plans to implement ZK-Proofs within Q4 to further strengthen block security and realize decentralization.” For this, Taiko is collaborating with Risk Zero and Saixin Labs.
# The Economics of Rollups and Managing MEV
Junger views MEV as a natural phenomenon within the economic system. He asserted, “While MEV can contribute to price formation, it is crucial to differentiate between harmful MEV and beneficial MEV to minimize exploitation.” To this end, Taiko is considering redesigning fee structures to enhance block proposers’ incentives.
Based Rollups are recognized as a promising solution to simultaneously enhance Ethereum’s scalability, decentralization, and security. Taiko plans to leverage Based Rollups to improve interoperability within the Ethereum ecosystem, continuing research and development through hackathons to foster Ethereum’s growth. With the eventual goal of developing Type 1 ZK-EVM, Taiko aims to create next-generation rollup solutions compatible with Ethereum.
