Why We Invested in Taiko: The Legendary Korean Crypto VC Hashed
TechFlow Selected TechFlow Selected
Why We Invested in Taiko: The Legendary Korean Crypto VC Hashed
Taiko aims to improve Ethereum's scalability by 1000x, providing developers with an EVM-consistent UI and experience.
Navigating Web3 tides with focused insightsAuthors: Ryan Kim, Edward Tan, Dan Park
Compiled by: TechFlow
Imagine a world where Ethereum's scalability is limitless, transactions are lightning-fast, and user privacy is sacred. This isn't a distant dream—it’s a rapidly approaching reality, thanks to Taiko.
As a major investor, we’re excited to support Taiko’s journey of revolutionary innovation within the Ethereum ecosystem. Their Type-1 ZK-VM technology is driving this transformation. Today, as they launch their mainnet, we stand at the precipice of an unprecedented leap in technological advancement.
Despite the challenges of integrating ZK with EVM, Taiko’s Type-1 ZK-VM technology—introduced in 2023 by CEO Daniel Wang—is a breakthrough. CTO Brecht Devos and CFO Terence Lam are also key contributors. The experienced team has successfully launched multiple public testnets within a year, demonstrating impressive performance metrics.
The Taiko team brings deep expertise from their background at Loopring, one of the earliest ZK rollups. This foundation equips them with the knowledge and skills needed to tackle Ethereum’s complex scalability challenges. The management team has worked together for over five years—a rarity in this space—further strengthening their cohesive and effective approach to innovation.
Taiko aims to scale Ethereum by 1000x while offering developers a UI and experience fully consistent with the EVM. This means any EVM-compatible L1 project can seamlessly transition to L2 by simply copying and pasting its code onto Taiko.
A unique aspect of Taiko’s approach is the decentralization of proposers and provers, preventing single points of failure. Taiko implements a Based Rollup to decentralize the sequencing process within the protocol. In this setup, Ethereum validators handle sequencing, as Based Rollup allows ordering directly on the base L1 chain. Moreover, Taiko’s Based Contestable Rollup (BCR) enables app 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, making Taiko the only L2 to achieve this capability.
These features have attracted over 100 DApps to Taiko’s testnet. Taiko has already established partnerships with Etherscan, USDC, Pyth, and multiple DeFi protocols and bridges. With Uniswap announcing its deployment of Uniswap V3 on Taiko’s mainnet, we expect similar announcements from other major protocols upon mainnet launch. Notably, Taiko boasts the largest Discord community across the entire crypto space, highlighting strong community engagement and support.
Taiko also maintains a robust technical roadmap featuring several promising innovations:
-
Based “Booster” Rollup (BBR): The Booster Rollup enhances the base rollup by providing native Ethereum L1 DApp scaling. BBR enables atomic cross-rollup transactions across all L2s while preserving the sequencing advantages of L1. After launching BCR on mainnet, Taiko plans to upgrade to BBR or launch a separate BBR L2—a significant milestone ahead.
-
Inception Layers: This involves using Taiko as both an L2 and L3 layer, enabling it to run multiple parallel L2 instances and deploy L3s on top. Leveraging Taiko’s equivalence with Ethereum, this approach overcomes scalability limits and allows multiple rollups to coexist. Through Inception Layers, this method ensures extensive scalability while maintaining interoperability across layers via Merkle proofs, preventing fragmentation.
Taiko enjoys support from prominent figures in the Ethereum community, including Vitalik Buterin and Justin Drake. This endorsement underscores the credibility and potential of Taiko’s technology. With such a solid foundation and a clear vision, Taiko is poised to become one of the cornerstones of Ethereum’s scalable and innovative future. We’re thrilled to be part of this journey.
Join TechFlow official community to stay tuned
Telegram:https://t.me/TechFlowDaily
X (Twitter):https://x.com/TechFlowPost
X (Twitter) EN:https://x.com/BlockFlow_News
@hashed_official
