Taiko is a promising Layer-2 scaling solution built on Ethereum, designed to enhance the network's scalability while maintaining its core properties of decentralization, permissionless access, and security. It employs a Type 1 ZK-EVM (Zero-Knowledge Ethereum Virtual Machine), ensuring full compatibility with Ethereum without requiring additional modifications or tooling, thereby facilitating a seamless developer experience​.

The project has garnered significant financial backing, raising $15 million in a Series A funding round, bringing its total funding to $37 million. This funding is aimed at supporting its mainnet launch and further development. Investors such as Lightspeed Faction, Hashed, and Generative Ventures have shown confidence in Taiko's potential to revolutionize Ethereum scaling through its innovative "based sequencing" technology​ .

Taiko's development strategy includes launching multiple testnets, with its latest, Katla, having facilitated over 13 million transactions. The project's focus on creating a "based booster rollup" aims to address liquidity fragmentation by enabling developers to scale their applications across all Layer 2 solutions natively. As the project moves towards its mainnet launch, it stands out in the competitive Layer-2 space for its strong technical foundation and community support​.