How does Taiko lead the way to Decentralization of Rollup?

Original author: @xparadigms and @IngsParty

Original Title: Decentralizing Rollups: A Neglected Priority in Rollups

Original compilation: weizhi, BlockBeats

Decentralization is one of the core values of blockchain. However, in order to improve the scalability of Ethereum, the Rollup solution sacrifices some degree of Decentralization in practice. Achieving full Decentralization in these operations still faces challenges in terms of ordering and proof of Settlement, especially for optimistic Rollup and zero-knowledge (zk) Rollup.

Despite these challenges, the development of Decentralization Rollup is accelerating. Some optimistic Rollups have introduced permissionless challenge mechanisms and are testing hybrid proof systems. The Taiko project stands out for its clear Decentralization roadmap. Next, let’s take a closer look at the reasons.

1. Background - Core Components: BCR and BBR

Taiko’s “Decentralization Rollup Journey” introduces two proof systems and frameworks: Competition-based Rollup (BCR) and Booster-based Rollup (BBR).

1.1 Based on Competitive Rollup (BCR) - Powerful L2 Proof System

BCR is a Rollup design that includes a competitive mechanism. The design verifies transactions by allowing participants to challenge the validity of transactions when fraud is suspected. This mechanism enhances Decentralization, as it allows ETH block validators to use a challenge mechanism for transaction ordering without a central sequencer, thus maintaining the integrity of the blockchain.

BCR mechanism combines the advantages and challenges of ETHereum transaction ordering, aiming to maintain security and Decentralization while dropping Money Laundering. In addition, Taiko adopts a variety of proof systems within BCR, including SGX, ZK, SGX+ZK, and other stages of Rollup proof systems, ensuring the flexibility and more stable operation of the system.

Despite having these advantages, BCR also has a potential drawback in its design: when the competition frequency is low, the prover may lack activity. The structure of the prover requires a high frequency of competition to generate profit, so in an environment with less competition, they may be more inclined to not participate. To address this issue, Taiko has implemented dynamic adjustments to different Rollup proof systems to resolve this problem.

1.2 Rollup Based on Booster (BBR)

BBR aims to expand Ethereum DApps without the need to redeploy on all L2 solutions. It reduces the workload for developers and drops the cost of redeployment by sharding transaction execution and storage. This design aims to address the liquidity fragmentation issue between L2 and enhance network scalability.

In November 2023, Taiko launched a booster Rollup plan called Gwyneth to enhance the capabilities of Ethereum. Gwyneth uses ETH L1 validators for transaction ordering and L1 builders for block construction. Its main features include synchronous composition for seamless L1 integration, scalability to meet growing demands, and the ability to pre-confirm fast transactions.

Gwyneth has been ‘terminated’ from the beginning, its security is guaranteed by Taiko’s multi-proof system Raiko, and it uses a trusted execution environment (TEE), with plans to introduce zkVM in the future. BCR and BBR are both part of Taiko’s efficient scaling solutions for Ethereum, ensuring high volume processing while maintaining security and decentralization.

2. Main Points

2.1 “Have we considered Decentralization in Rollup?”

FourPillars researcher Heechang believes that currently, most Rollups are still centralized. Decentralization sorting and proving systems are still in progress. Two well-known proving systems, namely Optimistic Rollup and ZK-Rollup, are moving towards Decentralization.

Optimistic proof-of-stake systems: These systems have implemented mandatory L1 transactions and are exploring shared ordering and introducing permissionless challengers. Arbitrum and Optimism allow permissionless challenges, but recently, due to suspicious vulnerabilities, Optimism has disabled this mechanism.

Zero-Knowledge Proof system: Most zero-knowledge rollups do not allow for forced transactions on L1. Although Zero-Knowledge Proof provides secure state transition guarantees, the operation is currently centralized, with significant technical challenges remaining.

Although it is not completely Decentralization at present, Rollup frameworks such as OP-Stack, ZK-Stack, PolygonzkEVM, and ArbitrumOrbit have been adopted by hundreds of L2 projects. This trend is continuing, and the Rollup framework teams are working hard to achieve Decentralization. However, not all projects have a clear roadmap to address the Decentralization challenge.

In this regard, Taiko has performed well. From its inception, there has been a clear roadmap with the goal of becoming an L2 and Decentralization Rollup framework. It has a clear path forward, with the operation tokenomics to provide sustainable utility for its L2 Token, which is lacking in most other projects.

As other projects also improve their codebase and infrastructure, can Taiko succeed in realizing its vision at the right market time? This remains to be verified by time. As a team closely cooperating with the Ethereum Foundation, Taiko especially needs to follow its progress in the field of Decentralization.

2.2 “It’s time to consider the Decentralization of Rollup”

FourPillars researcher IngeunKim believes that currently, the main Rollup projects are striving to achieve Decentralization. However, no project has made significant progress in achieving complete Decentralization. The main reason is that the mainstream Rollup projects prioritize performance and functionality in the initial design stage, with Decentralization having a lower priority. It is now extremely difficult to integrate the concept of Decentralization into their rigorous design. This is understandable because in the early stages, Rollup needs to deliver efficient performance while meeting the scalability needs of the Ethereum network.

However, now the concept of Decentralization in Rollup is becoming increasingly important. It’s like the natural transition from performance-driven Web2 era to the Web3 era of Decentralization. Fortunately, many Rollup projects have laid the foundation for future Decentralization. In this context, Taiko’s attempt in Decentralization Rollup is worth actively following. Especially its design based on the Competitive Rollup (BCR) mechanism includes the essential elements to achieve complete Decentralization, including allowing anyone to participate, and fair rewards and punishments.

Of course, there are still many areas that need improvement, and the road to complete Decentralization is full of challenges. However, Taiko’s efforts are considered to be of great importance and may have a positive impact on the entire Ethereum L2 ecosystem. Their progress is definitely worth follow.

3. Other Opinions

3.1 “The choice is not only a technical issue, but also a matter of Decentralization”

Taiko member Junger stated that with the popularity of Rollup, fragmentation and isolation have become critical issues. There is a trade-off between Rollup-based and shared ordering layer. The shared sorter provides fast finality and cross-chain interaction composability, but introduces new trust assumptions and potential failure points. Rollup-based utilizes Ethereum’s infrastructure, providing liquidity and L1 composability, but faces challenges of block time and revenue.

Future improvements may include pre-confirmation based and faster L1 block time to enhance user experience while maintaining alignment with Ethereum. The goal is to build a scalable and truly Decentralization ecosystem that is in line with the vision of Ethereum.

Junger emphasizes that the choice of whether to develop based on Rollup is not just a technical decision, but also about the direction of Decentralization Rollup framework.

3.2 “The endgame is based on Rollup”

ETH Foundation researcher Justin Drake has been actively involved in discussions on the ETH expansion solution, especially focusing on projects based on Rollup and Taiko. Drake emphasized the importance of Decentralization sorting, which can mitigate the issues of monopolistic control and censorship in transaction sorting. He believes that integrating Zero-Knowledge Proof and shared sorters can enhance the functionality and security of Rollup.

Justin Drake believes that Taiko is an important step in achieving a decentralized and scalable Ethereum ecosystem, with its Mainnet featuring permissionless ordering and proof systems as a notable feature. He also said, “The end game will be based on Rollup.”

Related Articles:

• Based on the Booster Rollup (BBR): Taiko’s Milestone of Development - Taiko Labs

• Based on Pre-Confirmed Rollup Centralization Considerations (Part 1) - Taiko Labs

• Multiple Proof | Taiko Documentation

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