Recognizing the limitations of single-proof solutions in addressing the potential bugs embedded within complex zkEVM code, Vitalik Buterin proposed Multi-proofs, identifying them as a crucial direction for Ethereum’s long-term development. Taiko stands out as one of the few Layer2 projects built upon the Multi-proofs framework. Launched on Ethereum’s mainnet on May 27th, Taiko has garnered significant attention and discussion within the cryptocurrency market, with major exchanges listing its token in recent weeks. So, how is Taiko different from other Layer2? What are the advantages and innovations of the technology behind Taiko?

What is the Multi-Proof Route? How is Taiko Different from Other Layer2 Solutions?

Taiko is a Type-1 zkEVM that offers the same opcodes and functionalities as Ethereum, ensuring high compatibility with the existing Ethereum ecosystem. One of the main differences between Taiko and other rollups is its use of the Based Rollup mechanism, which relies on Ethereum validators for transaction and block ordering instead of a centralized sequencer.

At the end of 2023, Taiko co-founder Daniel Wang introduced the concept of the “Based Contestable Rollup (BCR),” which incorporates a contestable mechanism. There are three primary reasons why the Taiko team opted for this design:

Firstly, Based Rollup is permissionless but requires “higher-level proofs” to address potential bugs in the software. This eliminates the need for a centralized network to shut down for data correction. As the Taiko network matures, this error-correction mechanism can be gradually phased out.

Secondly, although SGX proofs are thousands of times cheaper compared to zero-knowledge proofs, they are not the most ideal or decentralized validation method. The contestable design allows for challenges to SGX proofs when doubts arise, requiring higher-level proofs to revalidate the block, thereby reducing costs while enhancing validation credibility.

Lastly, the Contestable Rollup is flexible and scalable, and can be seen as an abstraction of zkRollup and Optimistic Rollup. For instance, if zero-knowledge proofs become cheaper in the future, the Contestable Rollup can be configured as a pure zkRollup, or as a pure Optimistic Rollup based on application needs, adapting to different validation requirements.

Why Top VCs Favor Taiko? What Are Its Technical Advantages?

In March this year, Taiko completed a $15 million Series A round of financing. Among the VCs investing in Taiko are Sequoia China, Generative Ventures, Hashed, Lightspeed Faction, Token Bay Capital and Flow Traders. So, why are so many VCs optimistic about Taiko?

Previously, Vitalik believed that Ethereum would ultimately move towards zkEVM. However, the single-proof solution of zkEVM cannot address the bugs embedded in its complex code. Vitalik considers Multi-proofs, which generate multiple types of proofs for a single block, crucial since if one type of proof fails, others can still ensure the system’s normal operation and quickly detect any erroneous state transitions. Essentially, Taiko is an application of Multi-proofs, with its BCR framework core concept involving Multi-proofs. Specifically, Taiko is divided into three main modules: Multi-Prover, Layer 2 Rollup, and the Taiko Protocol.

● Multi-Prover: Utilizes various zkVM and SGX integrated proof systems to directly compile and run the Rust-based Ethereum virtual machine, generating zero-knowledge or TEE proofs to verify the accuracy and completeness of Ethereum block execution.

● Layer 2 Rollup Node: Responsible for managing and executing transactions on Layer 2 while interacting with Ethereum Layer 1. Through Layer 2 Rollup technology, Taiko is able to increase Ethereum’s transaction throughput, reduce transaction costs, and maintain decentralization and security.

● Taiko Protocol: Define and execute 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 enables efficient scaling of Ethereum while maintaining its decentralized and secure features.

Overall, the key innovation of the Taiko Protocol is the BCR framework (Based Contestable Rollup), built on Multi-proofs (multi-prover interactive proofs). The core of the BCR framework is “competition”: anyone can become a proposer, submit block proposals, and any validator with objections to the state transition results can submit security-level challenge proofs to alter the L2 block state, choosing between correct and incorrect forks. Proposers need to package user transactions and generate zero-knowledge proofs, with multiple proposers competing to submit blocks; validators are responsible for verifying the blocks and zero-knowledge proofs submitted by proposers, with multiple validators competing to verify blocks. This process not only ensures the decentralization of each block’s generation and submission but also further enhances network security.

Praised by Vitalik, Taiko Poised to Unlock Ethereum’s Endgame

Since its development began in 2022, Taiko has had over 1.1 million independent wallets, more than 30,000 decentralized proposers, and over 14,000 decentralized validators during its testnet phase. On May 27th, Taiko officially launched on the mainnet. According to Taiko’s official website, there are currently over 100 projects in the Taiko ecosystem, including wallets, NFT markets, oracles, DeFi, and AI applications. Recently, the Taiko ecosystem has seen rapid development, attracting a number of high-quality projects such as Pyth, Etherscan, Pancakeswap, and Layer Zero.

The market has a positive outlook on Taiko’s mainnet launch. In his article “Layer 2s as Cultural Extensions of Ethereum,” Vitalik Buterin mentioned Taiko, stating: “Each Ethereum L2 has its unique soul. Taiko emphasizes ‘seamless user experience,’ ‘community-based,’ ‘security-first,’ and ‘based.’ I am delighted to see Taiko launched as a Based Rollup platform. Ethereum benefits from L2s adopting various approaches, and I appreciate that Taiko is among the first to develop in this direction.”

The well-known VC Hashed said: “Imagine a world where Ethereum’s scalability is limitless, transaction speeds are lightning-fast, and user privacy is inviolable. This is not a distant dream but a rapidly approaching reality, all thanks to Taiko.”

Summary

From the above, it is evident that Taiko has many technical advantages and is highly regarded by many prominent figures. However, Taiko’s launch time is relatively short and still needs market validation. Additionally, after Taiko announced its tokenomics, the community expressed concerns about transparency. Taiko’s co-founder and CEO, Daniel Wang, responded on Discord, stating that transparency doesn’t resolve disagreements because everyone has a strong subjective definition of ‘fairness,’ which we cannot unify nor attempt to reach a consensus on.

In the long-term development, the zkEVM ecosystem is progressing slowly, while Op-based Layer2s like Arbitrum and Optimism have already gained a significant lead in ecosystem development. Optimism has built a strong ecosystem moat through the open-source Op Stack, and Arbitrum through L3 permissions. This is similar to how technically advanced public chains like Solana may be compared to Ethereum, but Ethereum’s development is still better than Solana’s. Currently, the zk-based ecosystem lags behind the Op-based ecosystem in terms of development. Although zk-based technology has advantages, it cannot be denied that the Op-based ecosystem is also continually striving and may even achieve further technological innovations.

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