Taiko Receives Investment in Series A Financing Round

Taiko, a leading provider of layer 2 scaling solution for the Ethereum blockchain, has raised $15 million in a series A funding round. This increased venture capital firms' allocation of increasing amounts of investment in crypto projects. The round was led by Lightspeed Faction, Hashed, Generative Ventures and Token Bay Capital. Other investors in the round included Wintermute Ventures, Presto Labs, Flow Traders, Amber Group, OKX Ventures, GSR and WW Ventures. The latest round brings Taiko's total fundraising in three rounds to $37 million.

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Taiko

Taiko provides a "ZK aggregation equivalent to Ethereum," which Ethereum co-founder Vitalik Buterin described in a 2022 post as the holy grail of technological success for these scaling networks. "Aggregation" is a term for a layer-2 chain that acts as an auxiliary network to provide faster and cheaper transactions that can then be embedded into a main or "base" blockchain such as Ethereum. "ZK" refers to "zero-knowledge" cryptography, a new trend in blockchain design. In January, Taiko had launched the "Katla" test network, which was advertised as the last major milestone before the launch of a mainnet or mainnet, which is expected soon. But there is a lot of competition. The L2Beat website lists 44 active layer-2 projects and 34 "upcoming projects" including Taiko. Note especially for Taiko. It claims to use a technology known as "based" sequencing, where a key component known as a "sequencer" is driven by the underlying or layer-1 blockchain. In the architecture of blockchain networks, the sequencer is a component of the layer-2 chain that works like an air traffic controller, aggregating transactions so that they can be finalised in a block of data.