Taiko, an Ethereum Layer 2 scaling solution provider, recently announced the completion of a Series A round of financing worth $15 million.

Financing Highlights
The round was led by Lightspeed Faction, Hashed, Generative Ventures and Token Bay Capital. Other investors include Wintermute Ventures, Presto Labs, Flow Traders, Amber Group, OKX Ventures, GSR and WW Ventures. This round brings Taiko’s total funding across three rounds to $37 million.

Technical advantages
Taiko claims to offer the “Ethereum equivalent of ZK rollup,” a scaling technology proposed by Ethereum co-founder Vitalik Buterin. Taiko uses “sort-based” technology, where the sorter is driven by the underlying chain, avoiding the risk of centralization.

market competition
Currently, there are 44 active Layer-2 projects and competition is fierce. Taiko’s strength lies in its technical solutions, but whether it can stand out from the competition remains to be seen.

future outlook
Taiko has launched a testnet and the mainnet is expected to be launched soon. Taiko’s future development will depend on factors such as its technological strength, marketing and competitive environment.

The following are some factors that may affect Taiko’s future development:

1. Development of Ethereum Ecosystem
2. Maturity of ZK Rollup technology
3. Competitor performance

Investors can selectively invest in Taiko projects based on their own circumstances.