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Based Rollup

Taiko Alethia is a based rollup, meaning its sequencing is driven by Ethereum (L1) rather than a centralized or decentralized sequencer. Instead of relying on external sequencers, Ethereum validators handle sequencing, ensuring maximum decentralization, economic alignment with L1, and strong censorship resistance.

Unlike rollups with centralized sequencers, based rollups fully inherit Ethereum’s liveness and security guarantees, making them a natural extension of Ethereum itself.

For more information, explore our learning resources.

The Role of a Based Rollup

A based rollup is an L2 that delegates block sequencing to L1 validators, meaning the rollup’s transaction ordering is determined by Ethereum’s consensus mechanism. The key properties of based rollups include:

  • L1-Driven Sequencing: Ethereum’s block proposers select the next rollup block, ensuring a permissionless and censorship-resistant system.
  • No External Sequencer: Unlike rollups with centralized or committee-based sequencers, based rollups have no additional trust assumptions.
  • Economic Alignment with L1: The MEV generated on the rollup flows directly to Ethereum validators, reinforcing Ethereum’s economic security.
  • No Extra Consensus Mechanism: There is no separate PoS-based sequencing layer, reducing complexity and ensuring simplicity.

Comparison with Other Rollup Sequencing Models

FeatureBased Rollup (L1 Sequenced)Centralized SequencerShared Sequencer
L1 Economic Alignment✅ Yes, MEV benefits Ethereum❌ No, MEV captured by sequencer❌ No, sequencer captures MEV
Censorship Resistance✅ Yes, inherits Ethereum’s resistance❌ No, sequencer can censor✅ Yes, but depends on operator set
Decentralization✅ Maximum (Ethereum validators)❌ Single-point of failure✅ Multi-party, but still an additional trust layer
Simplicity✅ No extra infra needed❌ Requires separate sequencer❌ Requires coordination mechanism
L1 Liveness Inheritance✅ Yes, 100%❌ No, separate infra may fail❌ No, depends on sequencer uptime
Gas Overhead✅ Minimal, uses L1 inclusion❌ Higher, sequencer requires signature verification❌ Higher, additional coordination required

Why Based Rollups Are Superior

  1. Decentralization at the Root Level

    • Based rollups eliminate single points of failure by relying solely on Ethereum validators.
    • Unlike rollups with centralized sequencers, there’s no risk of operator downtime, misbehavior, or cartelization.

  1. Security Through L1 Alignment

    • Ethereum validators naturally include rollup transactions, ensuring that rollup security is directly tied to Ethereum’s own security.
    • This eliminates the risk of sequencer reorgs, censorship, or bribery attacks that centralized sequencers can be prone to.

  1. L1-Level Censorship Resistance

    • Based rollups inherit Ethereum’s censorship resistance guarantees.
    • Transactions cannot be censored by any external party since L1 validators are already highly decentralized and economically incentivized to include all transactions.

  1. Simplicity & Cost-Efficiency

    • No need for extra sequencer infrastructure, complex fallback mechanisms, or governance layers.
    • No additional gas overhead—transactions are simply included in Ethereum blocks, making based rollups more efficient and cheaper for users.

Summary

Based rollups are the simplest, most decentralized, and most Ethereum-aligned scaling solution. By leveraging Ethereum for sequencing, Taiko Alethia achieves:

  • Maximum decentralization (no extra trust assumptions)
  • Full censorship resistance (inherits L1 guarantees)
  • Strong economic alignment with Ethereum
  • Efficient gas usage (no additional sequencer overhead)
  • Enhanced security (Ethereum validators enforce correctness)