Taiko (TAIKO) is a Layer 2 scaling solution for Ethereum, designed to tackle high transaction fees and scalability challenges while preserving Ethereum's core principles of censorship resistance and security.
Taiko leverages zero-knowledge Rollups (zk-rollups) to bundle multiple transactions, enhancing scalability and reducing costs. It offers Ethereum equivalence, ensuring full compatibility with all EVM opcodes and JSON-RPC client APIs. Its Based Contestable Rollup (BCR) architecture decentralises transaction sequencing, eliminating reliance on centralised actors.
The TAIKO token powers the network and serves several functions. Token holders participate in governance through the Taiko DAO, voting on protocol decisions. TAIKO is used to pay for transaction fees within the network and can be staked to support the protocol’s security while earning rewards.