Taiko Analysis: Type-1 ZK-EVM Technology and Pre-Confirmation Mechanism

Taiko: The Ethereum Equivalence Revolution of ZK-Rollups

Taiko, led by former Loopring core developer Daniel Wang, is a fully Ethereum-compatible Type-1 ZK-Rollup that aims to deliver Ethereum-level security via zero-knowledge proofs while eliminating Layer 2 migration costs. The project’s key breakthroughs lie in its triple-architecture design:

• Type-1 ZK-EVM: Fully supports Ethereum opcodes (while competitors like zkSync Era only support 80%), enabling developers to seamlessly migrate DApps.

• Decentralized Sequencer Network: Utilizes a PoS mechanism to elect Proposer/Prover nodes, ending centralized sequencer monopolies.

• EIP-7212 Precompile Optimization: Reduces Gas consumption of ZK-SNARK verification by 40%.

On June 10, 2025, its Pre-Confirmations feature launched on the Hekla testnet, achieving 0.5-second soft transaction confirmation and laying the technical foundation for its Q3 mainnet, Alethia.

This Token Insights article explores how Taiko achieves full Ethereum compatibility through Type-1 ZK-EVM and how its pre-confirmation mechanism innovates transaction finality.

Technical Breakthrough: Pre-Confirmation and Multi-Proof System

The pre-confirmation mechanism addresses the delay pain point of ZK-Rollups:

• After users submit a transaction, decentralized Basednodes (fast-response nodes) generate digital signatures within 0.5 seconds to provide soft confirmation, ensuring instant finality.

• Hekla testnet achieved peak 1,537 TPS with only 1.5-second confirmation delay (zkSync Era requires 5 minutes).

• 3,892 Basednodes across 32 countries suppress malicious behavior through a staking economy model.

The Multi-Proof System strengthens redundancy:

• Supports SGX/TEE hardware proofs, ZK-SNARKs, and ZK-STARKs simultaneously.

• If one proof system fails (e.g., a ZK-SNARK vulnerability), the network switches to backups, greatly reducing single-point failure risks.

Hekla’s three-layer architecture ensures full-chain reliability:

1. Sequencer Layer – Handles transaction ordering

2. Prover Network – Distributes ZK proof generation

3. Contract-L1 – Final verification on Ethereum mainnet

This setup already supports seamless migration of complex DApps like Uniswap V4 and Aave V3. On-chain performance can be monitored via the JuCoin Layer2 ecosystem dashboard.

Tokenomics: Staking Incentives & Governance Empowerment

$TKO adopts a low-inflation, high-circulation model:

• Total supply: 1 billion tokens

• Initial circulation: 150 million (15%)

• Distribution strategy:

  • 60% to community and ecosystem incentives (including 5% testnet airdrop)

  • 20% to team (3-year linear vesting)

  • 17% to investors (1-year lockup + 2-year linear release)

Core utilities include:

• Sequencer staking: Nodes must lock 500,000 $TKO to participate in sequencing

• Prover incentives: Earn 0.1 $TKO per valid proof

• Governance voting: Determine protocol parameters (e.g., Gas fee distribution)

Application-based token burning suppresses inflation — 90% of Gas fees will be burned post-mainnet launch. However, annual prover rewards represent a 12% pressure on circulating supply.

Ecosystem Progress & Competitive Landscape

Hekla Testnet Milestones:

• Pre-confirmation adoption: 87% of test transactions used 0.5-second soft confirmation

• Developer migration: Uniswap V4’s order processing on Taiko was 3x faster

• Cross-chain integration: Assets interoperable with 40+ chains via LayerZero

Redefining Competition:

Compared to:

• zkSync Era (Type-4 ZK-EVM, 80% compatibility)

• Polygon zkEVM (Type-3, 95% compatibility)

Taiko’s Type-1 ZK-EVM offers three major advantages:

• 100% EVM equivalence: Supports unmodified Solidity contracts

• Gas cost: 0.0012 (vs zkSync’s 0.0035)

• Fully decentralized sequencer (zkSync still centrally controlled)

Risk Challenges & Mainnet Success Indicators

Technical Risks:

• ZK circuit complexity: Full compatibility increases proof system audit difficulty (cf. 2024 Polygon zkEVM vulnerability)

• Cross-chain bridge dependence: Attacks on LayerZero could disrupt asset transfer

• Node centralization: Top 10 testnet nodes control 28% of computing power

Alethia Mainnet Targets:

• TVL: Must exceed $500M within 90 days (zkSync had $820M in same period)

• Validator decentralization: Over 100,000 needed (currently 3,892 on testnet)

• Pre-confirmation adoption: Must be integrated in >70% of mainnet DApps

If Q3 2025 targets are met, Taiko could set a new standard for ZK-Rollups. Otherwise, open-source competitors like Scroll may capture market share.

Future Development: zkOracle and Modular Expansion

Taiko’s 2025 roadmap focuses on two major upgrades:

zkOracle Network (Q4 2025):

• Provides tamper-resistant off-chain market data for DeFi

• Initial integration with Chainlink nodes, transitioning to a decentralized oracle network

Modular DA Layer (Q1 2026):

• Integrates Celestia as a backup data availability layer, cutting storage costs by 78%

• Enables developer-defined proving systems (e.g., RISC Zero’s zkVM)

These upgrades aim to evolve Taiko from a rollup into a general-purpose verifiable computing platform. However, they must overcome physical limits in proof generation (currently 12 proofs/second).