Taiko: The True Ethereum Layer 2

In the ever-evolving landscape of blockchain technology, Ethereum has long stood as a foundational pillar for decentralized innovation. Since its inception in 2015, Ethereum has empowered developers to build smart contracts and decentralized applications (dApps), fueling breakthroughs in DeFi, NFTs, and Web3. However, as adoption surged, so did its scalability challenges—rising gas fees and network congestion became persistent pain points.

Enter Layer 2 (L2) solutions: designed to offload transactions from Ethereum’s mainnet while preserving its security. Among the growing number of L2s, Taiko stands out with a bold mission—to become the true Ethereum L2 by maintaining full alignment with Ethereum’s core principles: decentralization, interoperability, and developer-first design.

This article explores how Taiko differentiates itself from other L2s, its technical innovations like Type-1 zkEVM, Based Rollup, and BCR (Based on a Contested Rollup), and how it’s building a sustainable ecosystem rooted in community and long-term vision.

The Scalability Challenge: Why Ethereum Needs Layer 2

Ethereum’s popularity is both its strength and its bottleneck. As dApps like Uniswap, Aave, and OpenSea gained traction, transaction volume overwhelmed the network. This led to high fees and slow confirmation times—especially problematic for small transactions or time-sensitive operations.

To address this, Ethereum explored sharding—a method to split the blockchain into smaller, parallel chains. While promising, sharding faced delays due to complexity and concerns about centralization. As a result, the ecosystem pivoted toward Layer 2 rollups, which process transactions off-chain and post compressed data back to Ethereum (Layer 1).

👉 Discover how next-gen rollups are reshaping Ethereum’s future.

However, not all L2s are created equal.

The Problem with Today’s Layer 2 Landscape

While many L2 projects claim to enhance Ethereum’s scalability, several have drifted from Ethereum’s original ethos:

1. Weakening Ethereum Integration

Many L2s operate as isolated ecosystems, offering only limited bridges to Ethereum. Some even rebrand themselves as independent “full-stack” chains, distancing from Ethereum entirely—undermining the very interoperability they were meant to enhance.

2. Centralized Sequencers

To boost speed and reduce costs, some L2s rely on centralized sequencers—single entities that order transactions. This introduces censorship risks and single points of failure, contradicting blockchain’s decentralized foundation.

3. Developer Fragmentation

Each L2 often requires unique tooling and code adjustments. Developers must rewrite dApps for each platform, increasing complexity and slowing innovation across the broader Ethereum ecosystem.

These trends signal a growing misalignment: L2s built on Ethereum but not truly for Ethereum.

Taiko’s Vision: A True Ethereum Layer 2

Taiko aims to solve these issues by adhering to three core principles:

1. Full Ethereum Equivalence
2. Complete Decentralization
3. Developer-Centric Infrastructure

Let’s explore how Taiko turns these ideals into reality.

1. Full Ethereum Equivalence: The Power of Type-1 zkEVM

At the heart of Taiko’s architecture is its commitment to being a Type-1 zkEVM—a classification defined by Ethereum co-founder Vitalik Buterin.

In a 2022 blog post, Vitalik categorized zkEVMs based on their compatibility with Ethereum:

• Type-4: Highly optimized but least compatible
• Type-1: Fully equivalent to Ethereum at the protocol level

Vitalik himself stated:

“I personally hope that eventually all zkEVMs become type 1…”

Taiko embraces this vision by implementing a Type-1 zkEVM, ensuring full compatibility with Ethereum’s execution layer. This means:

• No code changes needed for dApps migrating from L1
• Full use of existing tooling (e.g., MetaMask, Hardhat, Remix)
• Seamless interaction between Ethereum and Taiko

While Type-1 zkEVMs may sacrifice some performance for fidelity, Taiko believes true scalability must not come at the cost of integrity.

2. Complete Decentralization: Based Rollup & BCR

Based Rollup: Security Through Shared Consensus

Unlike most rollups that rely on independent sequencers, Taiko uses a Based Rollup model—where Ethereum validators double as Taiko block proposers.

This deep integration ensures:

• Transactions are ordered by Ethereum’s decentralized validator set
• MEV (Maximal Extractable Value) benefits go to Ethereum stakers
• Stronger security through shared consensus

In essence, Taiko doesn’t just connect to Ethereum—it runs on it.

BCR: Trustless Validation via Competitive Proof

Taiko introduces BCR (Based on a Contested Rollup)—a novel mechanism allowing anyone to challenge incorrect state transitions.

Here’s how it works:

1. A prover submits a block with a state transition proof.
2. Other participants can challenge it during a cooling period.
3. If challenged, a dispute protocol kicks in—higher stakes are required for deeper validation rounds.
4. Honest provers are rewarded; malicious ones lose their bond.

This system ensures:

• No blind trust in ZK proofs
• Incentivized honesty through economic stakes
• Resistance to single-point failures

Additionally, Taiko employs a multi-proof system, supporting various proof types (ZK, SGX, hybrid) to enhance flexibility and security.

3. Developer-Centric Design: BBR & Ecosystem Support

BBR: One Deployment, Universal Expansion

Taiko introduces BBR (Based Booster Rollup)—a game-changer for developers.

With BBR:

• Deploy your dApp once on Ethereum L1
• It automatically scales across all compatible L2s
• No need for per-chain deployment or maintenance

Think of it like plugging an SSD into your laptop—your app gets faster without changing its core structure.

This eliminates fragmentation and reduces operational overhead—freeing developers to focus on innovation.

Open Source & Community Empowerment

Taiko Labs open-sources all code, ensuring transparency and enabling community contributions. Their philosophy? "Taiko only succeeds when builders succeed."

From Testnet to Mainnet: A Proven Roadmap

Taiko didn’t rush to launch. Instead, it followed a rigorous seven-phase testnet rollout:

The mainnet launch was historic—Vitalik Buterin mined the second block, signaling strong community endorsement.

Today, users can bridge ETH, interact with dApps, run nodes, and participate in consensus—all while enjoying low fees and fast confirmations.

👉 See how you can get started on next-generation Ethereum L2s today.

Current Progress: Metrics That Matter

Since mainnet launch, Taiko has demonstrated rapid growth:

• ✅ Over 100 million transactions processed
• ✅ Daily transaction peaks exceeding 2 million
• ✅ More than 1 million unique wallet addresses
• ✅ 30% reduction in L1 gas costs for data posting
• ✅ Active proposers now achieving profitability

These metrics reflect not just technical success—but real user adoption and economic sustainability.

Community & Governance: Building the Future Together

TAIKO Token: Fueling the Ecosystem

The TAIKO token (1B max supply) powers the network’s economy:

• 11.62% to investors
• 9.8% to core team (4-year vesting)
• 10% allocated to community rewards

All tokens follow a gradual unlock schedule to prevent market shocks and encourage long-term participation.

Trailblazers Program: Engage and Earn

Users earn XP by:

• Bridging assets
• Proposing blocks
• Interacting with dApps

XP unlocks rewards and ranks users in competitive factions (Based vs Boosted). NFT holders gain bonus XP—driving engagement across layers.

Path to DAO Governance

Taiko is moving toward full decentralization:

• TAIKO holders will vote on key upgrades
• A council will guide early decisions
• Community proposals will shape future development

Frequently Asked Questions (FAQ)

Q: What makes Taiko different from other Ethereum L2s?
A: Taiko is the only L2 pursuing full Type-1 zkEVM equivalence, Based Rollup integration, and BCR-based dispute resolution, ensuring maximum alignment with Ethereum’s core values.

Q: Can I use my existing Ethereum tools on Taiko?
A: Yes! Taiko supports MetaMask, Hardhat, Etherscan-compatible explorers, and all standard EVM tooling—no modifications needed.

Q: Is Taiko secure?
A: By leveraging Ethereum’s validator set and competitive proof systems, Taiko achieves trust-minimized security without relying on centralized intermediaries.

Q: How does Taiko handle high transaction volume?
A: With optimized data compression and efficient proof aggregation, Taiko maintains high throughput while keeping costs low—even during peak usage.

Q: Can developers deploy dApps easily on Taiko?
A: Absolutely. Thanks to BBR and EVM equivalence, developers deploy once and scale everywhere—reducing complexity and accelerating time-to-market.

Q: What is the role of the TAIKO token?
A: TAIKO is used for staking, governance, paying fees in certain contexts, and rewarding contributors in programs like Trailblazers.

The Road Ahead: Scaling Ethereum, the Right Way

Taiko isn’t chasing short-term hype. Its roadmap focuses on two pillars:

1. Perfecting BCR – Enhancing dispute resolution efficiency and multi-client support
2. Expanding BBR – Enabling universal dApp deployment across the rollup ecosystem

As these technologies mature, Taiko could redefine what it means to be an Ethereum L2—not as a competitor, but as a true extension of Ethereum itself.

Final Thoughts: Why Taiko Matters

In an era where many L2s prioritize speed over substance, Taiko chooses integrity over shortcuts. By staying faithful to Ethereum’s principles—decentralization, interoperability, and open access—Taiko offers a sustainable path forward for scalable blockchain innovation.

Whether you're a developer seeking frictionless deployment, a user tired of high fees, or a believer in Ethereum’s long-term vision, Taiko represents a future where scalability doesn’t compromise sovereignty.

👉 Join the evolution of Ethereum scaling—explore what’s possible on true Layer 2 networks.