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A comprehensive look at TeQoin’s Layer-2 architecture, components, and how they work together to provide fast, low-fee transactions while maintaining Ethereum’s security.
Target Audience: Developers, researchers, and technical users who want to understand how TeQoin works internally.

🎯 What is TeQoin?

TeQoin is an Optimistic Rollup Layer-2 scaling solution built on Ethereum.

Key Characteristics


🏗️ Architecture Overview

System Components

Core Components

Sequencer

Block Production
  • Receives transactions from users
  • Orders and batches transactions
  • Produces L2 blocks every 5 seconds
  • Posts batches to Ethereum L1

L2 Execution Layer

Transaction Processing
  • Executes EVM transactions
  • Maintains L2 state
  • 100% EVM compatible
  • Geth-based execution

Bridge Contracts

L1 ↔ L2 Communication
  • Deposit ETH from L1 to L2
  • Withdraw ETH from L2 to L1
  • Message passing
  • Asset backing (1:1)

State Contract (L1)

Data Availability
  • Stores transaction batches
  • Records state roots
  • Enables fraud proofs
  • Guarantees data availability

🔄 Transaction Flow

User Transaction Lifecycle

1

User Submits Transaction

User sends transaction to the sequencer via RPC endpoint
2

Sequencer Receives & Orders

Sequencer receives transaction and adds it to the mempool
  • Validates transaction format
  • Checks signature
  • Orders by gas price (if needed) or FIFO
3

Execution on L2

Transaction is executed in the next L2 block (~5 seconds)
  • EVM executes transaction
  • State is updated
  • Receipt is generated
  • User gets confirmation (instant)
4

Batching

Sequencer batches multiple transactions together
  • Collects transactions over time window (e.g., 10 minutes)
  • Compresses transaction data
  • Creates batch with hundreds/thousands of TXs
5

Posting to L1

Batch is posted to Ethereum L1
  • Transaction data posted to L1 calldata
  • State root committed
  • Data becomes publicly available
6

L1 Finalization

After 7-day challenge period, transaction is final
  • No fraud proofs submitted = valid
  • Withdrawal can be finalized
  • Transaction is permanently settled

📊 Data Flow

How Data Moves Through the System


🔐 Security Model

Layered Security Approach

All data on Ethereum L1Every transaction’s data is posted to Ethereum:
  • Transaction inputs
  • Signatures
  • State transitions
Why this matters:
  • Anyone can reconstruct L2 state from L1 data
  • No data can be hidden or censored
  • If sequencer disappears, users can recover funds
Cost optimization:
  • Data is compressed before posting
  • Batching reduces per-transaction cost
  • Calldata is cheaper than storage

⚙️ Key Technical Specifications

Network Parameters

Performance Metrics


🧩 Component Deep Dives

Optimistic Rollup

How optimistic rollups enable scaling while maintaining security

Fraud Proofs

Fraud detection and prevention system

Sequencer

Block production and transaction ordering

Security Model

Complete security analysis and threat model

💡 Design Philosophy

Core Principles

Never compromise on security for performance
  • All data on L1 (data availability)
  • Fraud proofs for verification
  • 7-day challenge period (no shortcuts)
  • Inherit Ethereum’s security guarantees
Trade-offs accepted:
  • Slower withdrawals (7 days) for security
  • Higher L1 costs for data availability
100% compatible with Ethereum
  • Same opcodes
  • Same precompiles
  • Same gas costs
  • Same developer tools
Benefits:
  • Zero migration effort
  • Familiar development experience
  • Reuse existing contracts
  • Compatible with all Ethereum tooling
Start centralized, move to decentralizedCurrent state:
  • Centralized sequencer (for simplicity)
  • Decentralized verification (anyone can challenge)
Future plans:
  • Decentralized sequencer set
  • Proposer selection mechanism
  • MEV-resistant ordering
Make it feel like Ethereum, but better
  • Instant confirmations (5 seconds)
  • Low fees (near-zero)
  • Same wallet experience
  • MetaMask compatibility
No compromises on UX for technical purity.

🆚 Comparison with Other Solutions

TeQoin vs Other Scaling Approaches

Why Optimistic Rollup?
  • ✅ Best balance of security and cost
  • ✅ Full EVM compatibility
  • ✅ Lower operational costs than ZK
  • ✅ Proven technology (Optimism, Arbitrum)

📈 Scalability Analysis

How TeQoin Achieves 1000+ TPS

Technique #1: Off-chain Execution
Technique #2: Batch Compression
Technique #3: Calldata Optimization
Combined Effect:

🔮 Future Enhancements

Roadmap Items

Performance & Features:
  • ✅ ERC-20 token bridging
  • ✅ ERC-721 NFT support
  • 🔄 Improved batch compression
  • 🔄 Multi-call optimizations
Infrastructure:
  • 🔄 Additional RPC endpoints
  • 🔄 Enhanced block explorer
  • 🔄 Better monitoring tools

🛠️ For Developers

Building on TeQoin

Network Information

RPC endpoints, chain ID, and network parameters

Deploy Contracts

Deploy your smart contracts to TeQoin L2

Integration Guide

Integrate TeQoin into your dApp

Smart Contracts

Write contracts for TeQoin L2

📚 Technical Resources

Further Reading

Optimistic Rollup Specs

Detailed optimistic rollup mechanics

Fraud Proof System

How fraud proofs work

Sequencer Design

Block production and ordering

Security Analysis

Comprehensive security model

External Resources


🎓 Academic Background

Research Papers

Key Papers:
  1. “Arbitrum: Scalable, private smart contracts” (Kalodner et al., 2018)
  2. “Optimistic vs. ZK Rollup: Deep Dive” (StarkWare, 2021)
  3. “A rollup-centric ethereum roadmap” (Vitalik Buterin, 2020)
Core Concepts:
  • Optimistic execution
  • Fraud proof construction
  • Data availability guarantees
  • Economic security model
Historical Context:TeQoin’s design builds on lessons from:
  • State channels (Lightning Network, Raiden)
  • Plasma (Plasma MVP, Plasma Cash)
  • Validium (off-chain data)
Why Optimistic Rollups Won:
  • Better data availability than Plasma
  • Higher throughput than state channels
  • Simpler than ZK rollups
  • Full EVM compatibility

🔬 System Invariants

Guaranteed Properties

TeQoin maintains these invariants:
  1. Conservation of Funds
L2 ETH never exceeds L1 backing
  1. Data Availability
All transaction data on L1
  1. State Validity
Invalid states can be proven and reverted
  1. Liveness
Censorship resistance guarantee
Ready to dive deeper? Continue to Optimistic Rollup Details