What is Taiko (TAIKO)?

Deep Dive

1. Purpose & Value Proposition

Taiko aims to scale Ethereum without compromising decentralization. It solves Ethereum’s high fees and slow speeds by processing transactions off-chain via ZK-Rollups, then submitting cryptographic proofs to Ethereum for finality. Unlike many Layer 2s, Taiko operates as a “based rollup” – inheriting Ethereum’s validator network for sequencing, which eliminates centralized sequencers and enhances censorship resistance (Taiko).

2. Technology & Architecture

As a Type 1 ZK-EVM, Taiko matches Ethereum’s virtual machine exactly, allowing developers to deploy existing Ethereum smart contracts without changes. Its “based preconfirmations” upgrade reduced block times to 2 seconds and boosted transaction speeds by 20–30× while maintaining Ethereum’s security guarantees (Foresight News).

3. Ecosystem & Governance

The protocol is transitioning to a DAO, with TAIKO token holders voting on upgrades and treasury allocations. Recent milestones include Chainlink Data Streams integration for DeFi oracles and Revolut’s listing of TAIKO for its 45 million users. The ecosystem hosts over 2.5 million wallets and 847 million transactions as of Q2 2025 (Taiko).

Conclusion

Taiko combines Ethereum’s security with Layer 2 efficiency through its ZK-Rollup architecture and community-driven governance. How will its focus on decentralization influence adoption compared to more centralized scaling alternatives?