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Recently, Ethereum creator Vitalik Buterin pointed to Taiko as a good example of a “based rollup.” This kind of L2 is a newer approach, but what does it mean?
Of course, a rollup is an L2 that processes Ethereum transactions offchain and then posts data back to the Ethereum mainnet (a.k.a. L1) for security. Accordingly, based rollups are a newer concept in the rollup space. The key characteristic of a based rollup like Taiko is that it uses the Ethereum L1 for sequencing transactions.
In other words, the order of transactions in a based rollup is determined by Ethereum validators rather than a separate sequencer. By using Ethereum for sequencing, Taiko aims to be more decentralized than rollups with centralized sequencers, which describes most L2s as they stand today.
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