Why do we invest in Taiko? Interpretation of Taiko's future prospects

Why are we investing in Taiko? A unique aspect of Taiko’s approach is the decentralization of proposers and validators to prevent single points of failure. Taiko uses Based Rollup to decentralize the ordering process within the protocol. In this setup, Ethereum validators complete the ordering because Based Rollup allows ordering on the underlying L1 chain. Additionally, Taiko’s Based Contestable Rollup (BCR) allows application chains to adopt newer, more efficient validity proofs without changing Taiko’s core protocol. Combined with Multi-Proof, this reduces potential vulnerabilities and smart contract bugs in the protocol, making Taiko the only L2 to implement this feature.

Today, the editor of this website will share with you a detailed introduction on why we invested in Taiko. Friends who need it, don’t miss it!

Hashed: Why are we investing in Taiko?

Imagine a world where Ethereum’s scalability is endless and transactions are fast Like lightning, user privacy is sacrosanct. This is not a distant dream, but a rapidly approaching reality, and it's all thanks to Taiko.

As a major investor, we are pleased to support Taiko’s journey to revolutionize the Ethereum ecosystem, and their Type-1 ZK-VM technology is leading this change. Today, as they launch mainnet, we are on the cusp of an unprecedented leap in technological innovation.

Despite the challenges of integrating ZK with EVM, Taiko’s Type-1 ZK-VM technology (launched by CEO Daniel Wang in 2023) is a breakthrough. CTO Brecht Devos and CF O Terence Lam were also involved, and the experienced team successfully launched multiple public testnets within a year and demonstrated impressive metrics.

The Taiko team brings a wealth of experience from their Loopring background, one of the original ZK rollups. This foundation equips them with the knowledge and skills needed to tackle the complex challenges of Ethereum scalability. The management team has been working together for over five years, a rarity in this sector, further cementing their cohesive and effective approach to innovation.

Taiko’s goal is to increase Ethereum’s scalability by 1000 times and provide developers with a UI and experience consistent with the EVM. This means that any EVM-compatible L1 project can seamlessly transition to L2 by simply copying and pasting its code into Taiko.

A unique feature of Taiko’s approach is the decentralization of proposers and validators to prevent single points of failure. Taiko uses Based Rollup to decentralize the sorting process within the protocol. In this setup, Ethereum validators complete the ordering because Based Rollup allows ordering on the underlying L1 chain. Additionally, Taiko’s Based Contestable Rollup (BCR) allows application chains to adopt newer, more efficient validity proofs without changing Taiko’s core protocol. Combined with Multi-Proof, this reduces potential vulnerabilities and smart contract bugs in the protocol, making Taiko the only L2 to implement this feature.

These features have attracted more than 100 DApps to enter Taiko’s testnet. Taiko already has partnerships with EtherScan, USDC, Pyth, multiple DeFi protocols and bridges. With Uniswap announcing the deployment of Uniswap V3 on the Taiko mainnet, we expect similar announcements from other major protocols once the mainnet goes live. Notably, Taiko has the largest Discord community in the entire crypto space, highlighting strong community participation and support.

Taiko also has an extensive technology roadmap containing many promising technologies:

• Based “Booster” Rollup (BBR): Booster Rollup expands by providing native Ethereum L1 DApp to enhance basic Rollup. BBR achieves atomic cross-rollup transactions between all L2s while maintaining the L1 sorting advantage. After launching BCR on the mainnet, Taiko plans to upgrade to BBR or launch a separate BBR L2 as an important milestone.
• Inception Layers: This involves using Taiko as the L2 and L3 layers, enabling it to run multiple parallel L2 instances simultaneously and deploy L3 on top of them. Taking advantage of Taiko's equivalence with Ethereum, scalability limitations can be solved, allowing multiple Rollups to coexist. Through Inception Layers, this approach ensures broad scalability while maintaining interoperability between different layers through Merkle proofs, thus preventing fragmentation.

Taiko is backed by big names in the Ethereum community, including Vitalik Buterin and Justin Drake. This recognition highlights the credibility and potential of Taiko’s technology. With such a strong foundation and clear vision, Taiko is poised to become one of the cornerstones of Ethereum’s future of scalability and innovation. We are excited to be a part of this journey.

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