Author: William M. Peaster, Bankless; Translator: Deng Tong, Golden Finance

Recently, Ethereum founder Vitalik Buterin pointed out that Taiko is a "rollup-based" good example. This L2 is a relatively new approach, but what does it mean?

Of course, rollup is an L2 that processes Ethereum transactions off-chain, then sends the data back to the Ethereum mainnet (also known as L1) to ensure security. Therefore, based on rollup is a relatively new concept in the rollup field. The key feature of rollup-based solutions like Taiko is that they use Ethereum L1 to sequence transactions.

In other words, the transaction order based on Rollup is determined by Ethereum validators rather than individual sequencers. By using Ethereum for sequencing, Taiko's goal is to be more decentralized than Rollups that use centralized sequencers, which describes the situation of most L2s today.

With L1 handling transaction sequencing, rollup-based solutions can more efficiently batch and confirm transactions, potentially reducing operational and transaction costs.

Furthermore, aggregation-based solutions eliminate the need for further complexity such as external consensus mechanisms and signature verification sequencers in L2, thereby simplifying the technical architecture.

In conclusion, Taiko represents an interesting new driver in the Ethereum scalability space. If you want to delve deeper, where should you start today?

First, you need to bridge Ethereum to Taiko. I recommend using platforms like Relay or Jumper for "quick bridging" to quickly deposit ETH; please note, when you are ready, you can also quickly withdraw ETH from Taiko through these same platforms.

What's next? Well, one thing to keep in mind is that Taiko Labs is currently overseeing its Trailblazers Season 2 event, which runs from now until December 16, 2024.

The new season will distribute 5 million TAIKO tokens as rewards to L2 users for trading, and will feature an updated experience points system, new team opportunities, new badges, revised XP multipliers, and a new battle game called Faction Battle Arena.

One of the key ways to delve into the Trailblazers 2 event is by trying out the top Taiko applications. For example, here are some applications that the Taiko team is currently focusing on:

• Oku - a bridging and exchange platform for the Ethereum Virtual Machine (EVM) chain on Taiko

• Ritsu - a decentralized exchange (DEX) on Taiko

• iZUMi Finance - a multi-chain DeFi protocol serving as a DEX as a Service platform

• Meridian - stablecoin, perpetual contract trading, and lending protocols.

In terms of scale, according to L2BEAT data, Taiko is currently the 19th largest L2, but the network still has a lot of room for growth - not only because of its innovative, secure architecture, but also because the ethereum community's demand for truly decentralized aggregation is growing.

Of course, the concept of "aggregation-based" is relatively new in cryptos and may take some time to catch up with why networks like Taiko are so eye-catching. In terms of participating in aggregation-based fundamentals, this knowledge gap is your arbitrage opportunity!