What is Taiko (TAIKO)?

Deep Dive

1. Purpose & Value Proposition

Taiko aims to solve Ethereum’s scalability bottlenecks without compromising its core principles. By functioning as a Type 1 ZK-EVM (zero-knowledge Ethereum Virtual Machine), it allows Ethereum-native dApps to deploy on Taiko without code changes, reducing fees and latency. Unlike many Layer 2s that use centralized sequencers, Taiko’s “based rollup” model lets Ethereum validators sequence transactions, preserving decentralization.

2. Technology & Architecture

Taiko uses ZK-Rollup technology to batch transactions into compressed proofs verified on Ethereum. Its key innovation is based preconfirmations, enabling near-instant transaction finality (~2 seconds) by leveraging Ethereum’s validator network. This structure avoids reliance on centralized sequencers, aligning with Ethereum’s trust-minimized ethos. Upgrades like the Shasta hard fork (Q4 2025) aim to further reduce costs and improve efficiency.

3. Tokenomics & Governance

The TAIKO token facilitates decentralized governance via a DAO, allowing holders to vote on protocol upgrades and treasury management. With a 1 billion total supply, the token incentivizes network participants (provers, proposers) and funds ecosystem development. Recent milestones include DAO deployment on testnet (Q1 2025) and plans for fully decentralized preconfirmations by Q1 2026.

Conclusion

Taiko merges Ethereum’s security with Layer 2 scalability through its unique based rollup design and community governance. As it approaches milestones like decentralized preconfirmations, a critical question emerges: Can Taiko maintain its Ethereum-aligned ethos while scaling to meet institutional demand for speed and low costs?