How Taiko works

The Taiko protocol as shown in this article:https://taiko.mirror.xyz/y_47kIOL5kavvBmG0zVujD2TRztMZt-xgM5d4oqp4_Y

Taiko is a Zero-Knowledge Proof Rollup (ZK-Rollup) that processes transaction data off-chain and verifies it on-chain using zero-knowledge proof, thereby reducing the computational burden on the Ethereum mainnet and enabling faster and cheaper transactions.

The protocol adopts a permissionless and decentralized network of proposers and validators, allowing anyone to participate in block proposal or proof generation.

In short, the operation steps are as follows:

1. Block Proposal: The proposer collects the transaction, packages it into a block, and submits it to the TaikoL1 contract on Ethereum. The contract stores the block's metadata and waits for it to be verified.
2. Block validation: After a block is proposed, the prover verifies it off-chain and generates a zero-knowledge proof to confirm that the transactions in the block are valid. That proof is then submitted back to the Ethereum mainnet.
3. Block confirmation: Once the proof is verified, the block is considered confirmed, and its state changes are reflected on the Layer 2 network.
   This series of steps ensures that the Layer 2 chain stays in sync with Ethereum and that transactions are genuine and valid.

Proposers are responsible for collecting transactions and submitting blocks to the TaikoL1 contract on Ethereum, while provers generate zero-knowledge proofs to validate those blocks. This open participatory model democratizes the network while enhancing its resilience by spreading responsibility across a wide range of participants.

Technical Characteristics

Ethereum-Equivalent

Taiko is fully compatible with the Ethereum Virtual Machine (EVM), which means that developers can deploy existing Ethereum-based applications on Taiko without complex challenges. This compatibility extends to a wider range of Ethereum infrastructure, including node software and data structures. The platform uses a modified version of the Ethereum Geth client, ensuring the use of the same hash algorithm, signature scheme, and storage structure, which helps with integration and minimizes the need for re-auditing or additional tools.

The equivalence to Ethereum is important because it allows Taiko to integrate with Ethereum's existing ecosystem, including its infrastructure and developer tools, ensuring that any updates to the Ethereum protocol can be easily adopted and implemented, keeping the two networks in sync, simplifying the development process of migrating from Ethereum to Taiko, and promoting the widespread adoption of the Taiko protocol throughout the Ethereum community.

No license to participate

Taiko emphasizes decentralization through its permissionless architecture, where block proposals and proofs are open to all participants. This means that anyone can become a proposer or validator in the Taiko network.

Decentralization of these roles is further supported by Taiko's use of Ethereum validators for transaction ordering. This sorting-based approach inherits Ethereum's trust neutrality and liveliness, ensuring the network operates in a transparent and fair manner.

Cost-effective

Taiko achieves cost efficiency by processing off-chain transactions on Layer 2 networks, reducing reliance on the Ethereum mainnet. The protocol only submits necessary cryptographic proofs to Ethereum, minimizing the amount of data that needs to be processed on-chain. This approach reduces transaction fees, making Taiko particularly suitable for high-frequency, small-value transactions.

Cost reduction is a significant factor driving Taiko's adoption, as it solves a significant challenge facing Ethereum – high gas fees.

Security and decentralization

Taiko inherits Ethereum's security model by using its validator set for transaction ordering, an architecture that ensures that all data needed to reconstruct the current state of the network is publicly available on Ethereum, maintaining the integrity of the network and allowing anyone to verify the correctness of transactions.

The zero-knowledge proof technology (ZK-SNARKs) used in Taiko enhances the security of the network, ensuring that transactions are verified without revealing any sensitive information. This approach prevents data leakage while maintaining the decentralized nature of the network.

Taiko Architecture

Taiko's architecture consists of several components that work together to ensure the functionality and security of the network:

1. TaikoL1 protocol: Deployed on the Ethereum mainnet, the contract handles the submission and verification of blocks proposed by Taiko nodes. It stores the proposed blocks and their corresponding proofs, ensuring that all data needed to reconstruct the state is publicly available.
2. TaikoL2 protocol:Deployed on the Taiko Layer 2 network, this contract manages the Layer 2 state and ensures synchronization with Ethereum by storing the latest Ethereum block state root.
3. Proposer:These participants collect transactions from the Layer 2 network and propose adding blocks to the blockchain. Proposers are rewarded based on the transaction fees included in their proposed blocks.
4. Verifier: The prover generates a zero-knowledge proof for the proposed block and submits it to the TaikoL1 contract for verification. The first valid block proof is accepted and the prover is rewarded.
5. Node: Taiko nodes execute transactions of on-chain data, manage the state of the Rollup chain, and ensure the network stays in sync. These nodes help proposers and verifiers fulfill their roles.
6. Cross-chain message transmission and signal service:Taiko's architecture supports secure cross-chain message transmission between Layer 2 networks and Ethereum. This is achieved through Merkle proofs and state root synchronization, allowing reliable communication of messages and state updates between the two chains.
   This design reduces the load on the Ethereum mainnet and improves transaction throughput without compromising security or decentralization.

ZK-EVM

ZK-EVM (Zero Knowledge Ethereum Virtual Machine) is crucial to the architecture of Taiko as it replicates the functionality of the Ethereum Virtual Machine, ensuring support for all Ethereum opcodes. It generates cryptographic proofs (ZK-SNARKs) to verify transactions without exposing transaction details, maintaining high security and privacy standards while remaining compatible with Ethereum.

Taiko L2 Rollup node

Taiko L2 Rollup nodes manage transaction execution on the Taiko Layer 2 network by retrieving transaction data from the Ethereum Layer 1 network and processing those transactions on Layer 2. The node uses a forked version of the Ethereum Geth client, ensuring that the same hashing algorithm, signature scheme, and data structure are used, enhancing compatibility and interoperability with the Ethereum ecosystem. Nodes handle the state of the Rollup chain, ensuring that transactions are executed deterministically and completed in a secure manner.

Taiko Protocol

The Taiko protocol manages the operation of the Taiko network, defines the rules for transaction processing and participant roles, and maintains transparency and decentralization.

Proposer, validator, and node operator

The proposer is responsible for building Rollup blocks from Layer 2 transactions and submitting them to the Ethereum mainnet. The prover generates ZK-SNARK proofs to validate the transactions in these blocks. Both roles are open to any participants, supporting Taiko's decentralized and permissionless nature. Node operators run Taiko nodes to synchronize the network and maintain the consistency of the Rollup chain. These roles are crucial for the operation of the Taiko architecture, ensuring secure and efficient transaction processing.

Challenges and Trade-offs

Implementing ZK-EVM in Taiko still poses challenges, especially in terms of the efficiency of verifying transactions using ZK-SNARKs.

The Ethereum Virtual Machine was not originally designed for zero-knowledge environments, which led to certain inefficiencies. To address these issues, Taiko made specific adjustments to the Ethereum protocol, such as restructuring gas costs and restricting certain EVM functions. These modifications are necessary to balance compatibility and the efficient generation of proofs.

There are also trade-offs related to the cost of data availability: publishing all transaction data on Ethereum to achieve data availability is costly, but Taiko mitigates this by using data compression technology.

The Taiko project aims to enhance compatibility with existing Ethereum smart contracts, improve the efficiency of ZK proofs, and explore cross-chain interoperability features. These advancements are aimed at improving Taiko's scalability, reducing costs, and providing new opportunities for developers and users.

What is ZK-Rollup technology?

Taiko is built on the Zero-Knowledge Proof Rollup (ZK-Rollup) technology, aiming to scale Ethereum by moving computations off-chain while maintaining data availability on-chain. This approach uses cryptographic proofs, specifically Zero-Knowledge Succinct Non-Interactive Argument of Knowledge (ZK-SNARKs), to verify the correctness of transactions. This means that Taiko only needs to submit succinct proofs to demonstrate that transactions have been executed correctly, without needing to publish all transaction data to Ethereum, thus reducing the amount of data that needs to be published on-chain.

The main advantage of ZK-Rollup is its ability to compress transaction data, thereby increasing Ethereum's throughput. This is achieved by batching multiple transactions into a single proof, which is then verified on the Ethereum mainnet.

The difference between ZK-Rollup and other scaling solutions such as Optimistic Rollup is that it does not rely on fraud proofs and has faster finality as proofs are verified immediately upon submission. They also use recursive proofs, where one proof can verify the validity of another proof. This approach allows for the finalization of multiple blocks with a single proof, further improving the scalability of the network.

However, ZK-Rollup also faces challenges, especially in the generation and verification of proofs, requiring a large amount of computational resources. Despite these challenges, the advantages of ZK-Rollup in scalability and security make it an important component of the Taiko architecture.

Understanding the ZK-EVM of Ethereum Equivalent

Taiko's equivalent Ethereum zero-knowledge Ethereum Virtual Machine (ZK-EVM) is designed to be fully compatible with Ethereum's existing infrastructure. This compatibility means that any smart contract, tool, or application running on Ethereum can be deployed on Taiko without modification. ZK-EVM in Taiko supports all Ethereum opcodes, ensuring that developers don't need to rewrite or re-audit their contracts when migrating to Taiko.

ZK-EVM works by executing transactions off-chain, and then submitting state transitions for verification on Ethereum. This process allows Taiko to extend Ethereum while maintaining the security and decentralization of the mainnet, solving the problem of low efficiency when running Ethereum Virtual Machine (EVM) in ZK circuits.

EVM was not originally designed for zero-knowledge proofs, so Taiko has made some optimizations to make it more compatible with ZK-SNARKs.

These optimizations include modifying the gas fee structure and restricting or removing certain EVM functions that are inefficient in the ZK environment. Despite these changes, Taiko still manages to maintain a high level of Ethereum compatibility, making it a practical and efficient solution for developers seeking to expand their applications.

Innovation and technical features of Taiko

Taiko has introduced some innovations in its Layer-2 solution that set it apart. One of them is maintaining equivalence with Ethereum while implementing ZK-Rollup. Taiko's commitment to full EVM compatibility allows developers to seamlessly transfer their dApps to Layer-2 without the need for modifications, making adoption and integration easier. Another innovation is the use of recursive proofs, which allows for the finalization of multiple blocks with a single proof, significantly improving network throughput. This approach enhances scalability and reduces the cost of using the network, making it more accessible to users.

bright spot

• ZK-Rollup technology: Using cryptographic proof to verify transactions off-chain, improving scalability and reducing costs.
• ZK-EVM, the Equivalent of Ethereum: Fully compatible with Ethereum, allowing developers to deploy dApps without modification.
• Layer-2 architecture: including Rollup nodes, proposers, and verifiers, with data availability maintained on Ethereum to ensure transparency and security.
• Innovations: Includes recursive proofs to increase throughput, full EVM compatibility, and a decentralized, permissionless network structure.
• Technical features: Focuses on maintaining equivalence with Ethereum while optimizing zero-knowledge proofs and decentralization.