Emre Yumlu 
Imagine a world where blockchain transactions are both lightning-fast and highly secure. Sounds impossible? Enter Taiko ($TAIKO), an innovative solution that brings this vision to life. If you’re frustrated by slow and costly transactions on the Ethereum network, Taiko offers the breakthrough you’ve been waiting for. In this article, we’ll explore what Taiko is, how it works, its use cases, and its tokenomic structure in detail.
What is Taiko ($TAIKO)?
Taiko ($TAIKO) is an open-source cryptocurrency and an Ethereum-equivalent Zero-Knowledge Rollup (ZK-Rollup) solution. In simple terms, think of Taiko as a high-speed highway that eases Ethereum’s congested traffic. It leverages Ethereum’s robust security and vast ecosystem to deliver faster and more cost-effective transactions.
Taiko operates as a Layer 2 scaling solution for Ethereum, enabling decentralized applications (dApps) to function seamlessly as they would on Ethereum’s mainnet while boosting transaction speed and reducing costs.
Key Features of Taiko
Ethereum Layer 2 Solution
Taiko is built on top of Ethereum as a Layer 2 solution. This allows developers to run existing Ethereum applications on Taiko without any modifications, preserving all of Ethereum’s benefits while offering faster and cheaper transactions.
Zero-Knowledge Proofs
Taiko utilizes advanced cryptography known as Zero-Knowledge Proofs (ZKP). This technology enables the validation of information without revealing its details. As a result, Taiko processes transactions securely and efficiently while maintaining decentralization and security.
Scalability and Efficiency
Through ZK-Rollup technology, Taiko batches multiple transactions, processes them off-chain, and submits only a summary to Ethereum’s mainnet. This approach reduces network congestion and significantly lowers transaction costs, providing a faster and more economical experience for users.
Versatile Use Cases
Taiko is not limited to a single domain. It supports a wide range of applications, including decentralized finance (DeFi), non-fungible tokens (NFTs), blockchain gaming, and more. Its Ethereum compatibility ensures seamless integration with existing wallets, tools, and smart contracts.
Cost-Effective Transactions
High gas fees on Ethereum are a common issue for users. Taiko reduces gas costs by approximately 30%, making transactions more affordable, even for smaller operations.
Impressive Performance
Since its launch, Taiko has achieved remarkable success, processing 110 million transactions and engaging with over 1.2 million unique wallet addresses within just 90 days. This demonstrates Taiko’s ability to meet the demand for scalable blockchain solutions.
Competitive Trading Platforms
Platforms like CoinUnited.io offer attractive perks for Taiko traders, including zero trading fees, high leverage options (up to 2000x), and advanced trading tools, making Taiko a compelling choice for investors.
How Does Taiko Work?
Taiko is an innovative Layer 2 scaling solution designed to enhance Ethereum’s performance while preserving security and decentralization. Here’s a simple breakdown of how Taiko operates:
Building on Ethereum’s Infrastructure
Taiko is built on Ethereum’s existing infrastructure and security. Using a “rollup” approach, it bundles multiple transactions and submits them to Ethereum’s mainnet collectively, enabling faster and cheaper transactions.
Security with Zero-Knowledge Proofs
Taiko employs zero-knowledge proofs to validate multiple transactions without revealing their details. This ensures secure, fast, and private transactions, with final verification performed on Ethereum’s mainnet, reducing the processing burden.
Ethereum Compatibility
A standout feature of Taiko is its Ethereum-equivalent ZK-EVM (Zero-Knowledge Ethereum Virtual Machine). This allows existing Ethereum applications to run on Taiko without any changes, providing a seamless experience for developers and users.
Fast and Efficient Transaction Processing
When you make a transaction on Taiko:
- The transaction is quickly processed on the Taiko network.
- Multiple transactions are bundled together.
- These transactions are compressed using zero-knowledge proofs.
- The compressed proof is sent to Ethereum for final verification.
This process is significantly faster and more cost-effective than transacting directly on Ethereum.
Security and Decentralization
Taiko inherits Ethereum’s robust security model. Transactions are protected by Ethereum’s proven security, while Taiko’s permissionless structure allows anyone to participate in the network, upholding the decentralized ethos of blockchain.
Use Cases of Taiko
Taiko, as a Layer 2 solution built on Ethereum with ZK-Rollup technology, offers scalability and efficiency. Here are its diverse use cases:
Scalable Decentralized Applications (dApps)
Developers aim to create dApps that can handle high user traffic while remaining cost-effective and efficient. However, Ethereum’s mainnet often faces congestion and high gas fees. Taiko provides a low-cost, high-speed alternative, enabling developers to scale applications efficiently. Users enjoy faster transactions, lower fees, and a smoother experience.
DeFi Protocols and NFT Marketplaces
DeFi protocols and NFT marketplaces struggle with high gas fees and slow transaction speeds. Taiko supports these operations with full compatibility with Ethereum’s tools and smart contracts, reducing costs and speeding up transactions. This improves user access and increases market liquidity.
Cross-Chain Interoperability
Projects and users seeking to transfer assets or data between blockchain networks face interoperability challenges. Taiko enables seamless transfers between itself and Ethereum, fostering flexibility and enabling complex blockchain applications.
Blockchain Gaming
Blockchain games require speed and cost efficiency for in-game assets and currencies. Traditional networks may fall short, but Taiko’s scalability supports fast, low-cost transactions. This allows players to experience true ownership and developers to create more engaging, cost-effective games.
Ethereum Scaling Solutions
Ethereum-based projects need to increase transaction throughput while cutting costs. Taiko batches transactions off-chain using ZK-Rollup technology while maintaining Ethereum’s security, resulting in more efficient dApps and better user experiences.
Developer Innovation and Hackathons
Developers and entrepreneurs seek platforms to showcase innovative blockchain solutions. Taiko’s hackathons and support programs encourage groundbreaking projects, expanding its ecosystem and driving blockchain innovation.
Why Choose Taiko for These Use Cases
Taiko stands out for these applications due to the following features:
- Ethereum Compatibility: As an Ethereum-equivalent Layer 2 solution, Taiko integrates seamlessly with existing Ethereum tools, wallets, and smart contracts.
- Scalability: ZK-Rollup technology supports high transaction volumes, ideal for DeFi, gaming, and NFT markets.
- Cost-Effectiveness: Lower transaction fees make blockchain interactions accessible to a broader audience.
- Security: By leveraging Ethereum’s robust security model, Taiko ensures a safe environment for decentralized applications.
Taiko Tokenomics
Taiko’s token allocation is as follows:
- 22% DAO Treasury
- 2% Guardian Prover Bonds
- 5% Grants & RetroPGF
- 10% Trailblazer Airdrop
- 1% Protocol Guild Airdrop
- 5% Genesis Airdrop (up to)
- 5% Initial Liquidity & Market Making
- 11.62% Investors
- 20% Taiko Labs / Core Team
- 16.88% Taiko Foundation Reserve
- 1.5% Taiko Official Prover Bonds
Taiko Investors and Backers
Taiko is supported by a strong network of investors and backers. Key names include Hashed Fund, Lightspeed Venture Partners, HongShan (formerly Sequoia China), OKX Ventures, GSR, IOSG Ventures, Mirana Ventures, Amber Group, and Wintermute, participating in Series A and other stages. Additional supporters like Token Bay Capital, Generative Ventures, KuCoin Ventures, and individual angel investors also contribute to the project’s growth.
Taiko Development Roadmap
Taiko’s roadmap outlines the platform’s technical progress and key milestones. Below are the planned updates and events for 2024 and 2025:
Q2 2024
- Taiko Mainnet Launch: Taiko’s mainnet was officially launched.
- Token Generation Event (TGE): The $TAIKO token was created and released to the market.
- Airdrop and CEX Listing: A token airdrop was conducted, and $TAIKO was listed on centralized exchanges (CEXs).
Q3 2024
- Mainnet: Gas Optimization: Achieved a 30% reduction in Layer 1 gas costs, making transactions more cost-effective.
- Testnet: Hekla Upgrade: The Hekla update was implemented on the testnet.
- Testnet: Ontake Hardfork: The Ontake hardfork was executed on the testnet.
- Testnet: zkVM Proof Integration: Zero-Knowledge Virtual Machine (zkVM) proofs were integrated into the testnet.
Q4 2024
- Mainnet: Ontake Hardfork: The Ontake hardfork was applied to the mainnet.
- Mainnet: zkVM Proof Integration: zkVM proofs were integrated into the mainnet.
- Devnet: Preconfirmation Demo: A preconfirmation mechanism demo was initiated on the development network.
- Testnet: Decentralized Security Council for Hekla: A decentralized security council for Hekla was established on the testnet.
- Devnet: Gwyneth Launch: The Gwyneth update was launched on the development network.
Q1 2025
- Testnet: Gwyneth Launch: The Gwyneth update was rolled out on the testnet.
Q2 2025
- Mainnet: Decentralized Security Council: A decentralized security council was activated on the mainnet.
- Mainnet: Gwyneth Launch: The Gwyneth update was implemented on the mainnet.
H2 2025
- Q3 2025 – Testnet: Hekla Preconfirmation: The preconfirmation mechanism for Hekla was tested on the testnet.
- Q4 2025 – Mainnet: Preconfirmation: The preconfirmation mechanism was deployed on the mainnet.
Taiko Team
- Daniel Wang: Co-Founder, CEO
- Brecht Devos: Co-Founder, CTO
- Terence Lam: Co-Founder, CSO
- Matthew Finestone: Co-Founder
Official Links
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