What Is Taiko (TAIKO)?
Taiko (TAIKO) is an Ethereum Layer 2 scaling solution designed to address the network's notorious congestion and high fees. Built on ZK-rollup technology, Taiko acts as a parallel track for Ethereum, processing transactions off-chain to achieve significantly faster speeds and lower costs.
Launched on May 29, 2024, Taiko (TAIKO) is an Ethereum Layer 2 scaling solution making waves in the crypto community. With over $13 million USD in total value locked (TVL) as of July 7, 2024, Taiko's innovative Zero-Knowledge (ZK) rollup architecture aims to to make the Ethereum ecosystem more accessible and efficient for everyone, drastically improving transaction speeds and slashing fees.
But what sets Taiko apart from other Layer 2 solutions? According to Taiko's documentation:
Ethereum is too expensive. We believe in Ethereum's core properties (e.g., censorship-resistant, permissionless, secure). We also believe that roll ups should extend (not augment) these properties.
At Taiko’s core lies ZK-SNARKs (Zero-Knowledge Succinct Non-Interactive Arguments of Knowledge), a form of advanced cryptography. ZK-SNARKs enable Taiko to bundle thousands of transactions into a single succinct proof, which is then verified on the Ethereum mainnet. In doing so, Taiko reduces the computational load on Ethereum, leading to faster transaction finality and lower gas fees for users.
Lower Fees: Taiko uses ZK-rollup technology, which bundles many transactions together and processes them off-chain, reducing the overall cost for each transaction because only a summary of these transactions needs to be recorded on the main Ethereum network.
Fully Open Source and Community-Driven: Taiko's code is fully open source, meaning anyone can view, modify, and contribute to the codebase. Such transparency ensures that the project benefits from the collective input of the global developer community, leading to continuous improvement and innovation. Additionally, because Taiko is community-driven and not controlled by any central authority, it remains decentralized and secure, with no single point of control.
Enhanced Efficiency: By processing transactions off-chain and only recording summaries on-chain, Taiko speeds up transactions and also makes the network more capable of handling a higher volume of transactions, enhancing overall performance and scalability.
Permissionless: Taiko embraces the permissionless nature of Ethereum. Anyone can participate in the Taiko network as a user, developer, or validator without needing prior approval or authorization. Open access democratizes the blockchain experience and encourages widespread participation.
Who Created Taiko?
Taiko was founded in 2021 by Terence Lam and Daniel Wang, both of whom bring extensive experience and expertise in the blockchain industry.
CEO Daniel Wang is well-known for founding Loopring, a protocol that enables the creation of decentralized exchanges using zero-knowledge proofs. His background in software engineering and blockchain project leadership has been pivotal in the development of Taiko.
COO Terence Lam has a strong background in finance and technology, having held various positions in these fields. His expertise in managing large-scale projects and his deep understanding of the crypto ecosystem have been crucial in guiding Taiko’s strategic direction.
Since then, the team has raised $22 million and $37 million over multiple funding rounds, led by prominent investors such as Sequoia China and Generative Ventures.
For more information, you can explore Taiko's About Us page.
How Does Taiko Work?
Taiko’s innovative architecture combines the security of Ethereum with the speed and efficiency of ZK-rollup technology. This synergy is achieved through several key mechanisms that distinguish Taiko as a leading contender in the Layer 2 scaling race.
Based Sequencing:
Taiko uses an optimized transaction ordering system akin to a smart scheduler that arranges activities in a way that minimize delays and maximize efficiency. By determining the best order for transactions, Taiko ensures that each one is processed quickly and smoothly, reducing overall wait times and congestion in the network.
Contestable Rollups (BCR):
Rollups involve bundling multiple transactions off-chain before submitting them to the Ethereum network. The "contestable" aspect allows any participant to verify the contents of these transaction bundles, ensuring transparency and security while significantly reducing gas fees.
Booster Rollups (BBR):
Booster rollups improve the efficiency of blockchain networks by utilizing advanced algorithms to aggregate transactions and compress the data into a single, smaller proof, which is then submitted on-chain. As a result, Taiko can handle more transactions at higher speeds, enhancing the network's overall efficiency and capacity.
Multi-Proofs:
Taiko’s multi-proof system uses a combination of zero-knowledge virtual machines (zkVMs), Trusted Execution Environments (TEE) and guardian proofs, enabling the simultaneous verification of multiple transactions. zkVMs allow for the execution of smart contracts with zero-knowledge proofs, ensuring privacy and security. TEEs are secure areas in a device's main processor that ensure sensitive data is processed in a trusted environment. Guardian proofs provide additional security by acting as a secondary layer of verification. Integrating multiple proof systems reduces the risks of bugs or vulnerabilities in any single system.
Block States:
In Taiko, blocks go through distinct stages: Proposed, Proved, and Verified. Initially, blocks are proposed for inclusion. They then undergo a proving process where cryptographic proofs are generated to confirm the validity of transactions. Finally, verified blocks are confirmed and added to the blockchain, ensuring a structured and transparent validation process.
Taiko Nodes:
Taiko nodes are individual devices or software applications that participate in a blockchain network. In the Taiko network, nodes execute transactions, maintain the rollup chain, and ensure synchronization with the Ethereum mainnet. By validating transactions and keeping the network aligned with Ethereum, Taiko nodes are crucial for the network's decentralized and efficient operation.
Bridging:
Taiko’s bridging functionality enables interoperability between the Taiko Layer 2 network and the Ethereum mainnet by using smart contracts to lock assets on one network and release equivalent assets on the other. Thanks to this, users can transfer assets seamlessly between different blockchain environments, ensuring a convenient user experience.
Inception Layers:
The inception layers form the foundational architecture of the Taiko network, providing the essential protocols and frameworks for interoperability, security, and scalability. These layers ensure all network components within Taiko work cohesively, enabling efficient communication and seamless integration with the Ethereum mainnet.
Why Trade TAIKO?
Governance through Taiko DAO: Taiko DAO is the governing body for TAIKO token holders. It enables token holders to vote on important decisions like smart contract upgrades and network parameters, ensuring that the protocol evolves in a decentralized, community-driven manner.
Staking and Validation: TAIKO tokens are used for staking, where token holders can participate in validating transactions on the network, helping to secure the network and maintain its integrity, with stakers earning rewards in return for their participation.
Payment for Fees: Users can utilize TAIKO tokens to pay for transaction fees within the Taiko network, facilitating smoother, more cost-effective transactions, leveraging the network’s zero-knowledge proof technology to reduce gas costs.
Proving Taiko Blocks: Provers on the Taiko network use computational power to generate cryptographic proofs for proposed blocks, ensuring that transactions are executed correctly. Provers earn rewards in the form of TAIKO tokens for their efforts, which incentivizes active participation and maintains the network's decentralization and security.
TAIKO Tokenomics
The TAIKO token is the lifeblood of the Taiko ecosystem, fueling governance, incentivizing participation, and potentially playing a key role in future fee mechanisms.
Token Distribution: TAIKO tokenomics model, showcases a strong emphasis on community involvement and long-term sustainability. The total supply of TAIKO tokens is capped at 1 billion, with the following allocation:
Taiko Labs and Core Team: 20% (rewarding the team for their development efforts)
DAO Treasury: 20% (providing resources for decentralized governance and future initiatives)
Taiko Foundation Reserves: 16.88% (ensuring financial security for the ecosystem's development)
Investors: 11.62% (reflecting early investor confidence in Taiko)
Pioneer Airdrop: 10% (rewarding active community participation and contributions)
Liquidity & Market Making: 5% (ensuring sufficient liquidity for trading and exchange)
Grants & RetroPGF: 5% (funding projects and initiatives that benefit the ecosystem)
Guardian Prover Bonds: 2% (incentivizing network security and reliable operation)
Token Supply: 1 billion TAIKO tokens
Token Unlock Schedule:
The TAIKO unlock schedule includes a vesting period of 4 years and an initial lock up of 12 months from the token generation event (TGE). The TGE date is June 5, 2024. After 12 months, 25% of the vested tokens will become available to unlock, with the remaining 75% unlocked linearly over the next three years.
How to Trade TAIKO on Flipster
Sign up for an account on the Flipster website or by downloading the Flipster app (Android or Apple).
Click the [Trade] tab.
Search for TAIKO and click on it.
Select the leverage (up to 100x).
Select either a Trigger Order or Market Order.
Input the amount of crypto you wish to trade, or select a percentage of your available funds to use.
Once you have confirmed the details, click the [Long] or [Short] button to open a position.
TAIKO Perpetual Swap Contract Specifications
Disclaimer: This material is for information purposes only and does not constitute financial advice. Flipster makes no recommendations or guarantees in respect of any digital asset, product, or service. Trading digital assets and digital asset derivatives comes with significant risk of loss due to its high price volatility, and is not suitable for all investors.