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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.

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🎯 What is TeQoin?

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

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Key Characteristics

AspectDetails
TypeOptimistic Rollup
Base LayerEthereum (L1)
EVM Compatibility100% compatible
Block Time5 seconds
Transaction FeesVery low (~$0.001)
FinalityInstant (optimistic) + 7 days (final)
SecurityInherits from Ethereum

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🏗️ Architecture Overview

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System Components

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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

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🔄 Transaction Flow

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User Transaction Lifecycle

1

User Submits Transaction

User sends transaction to the sequencer via RPC endpoint
    // User's wallet sends transaction
    const tx = await signer.sendTransaction({
      to: recipient,
      value: ethers.parseEther('0.1')
    });
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

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📊 Data Flow

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How Data Moves Through the System

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🔐 Security Model

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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

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⚙️ Key Technical Specifications

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Network Parameters

ParameterValuePurpose
Chain ID420377Network identifier
Block Time5 secondsTime between blocks
Block Gas Limit30,000,000Maximum gas per block
Batch Interval~10 minutesHow often batches post to L1
Challenge Period7 daysFraud proof window
EVM VersionShanghaiEthereum compatibility

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Performance Metrics

MetricTeQoin L2Ethereum L1Improvement
Block Time5 seconds12 seconds2.4x faster
TPS1000+15-3050x+ more
Finality (Soft)5 seconds12 seconds2.4x faster
Finality (Hard)7 days15 minutesSlower (trade-off)
Gas Cost~$0.001/tx$5-50/tx5000x+ cheaper

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🧩 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

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💡 Design Philosophy

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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.

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🆚 Comparison with Other Solutions

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TeQoin vs Other Scaling Approaches

FeatureTeQoin (Optimistic)ZK RollupSidechainState Channel
SecurityEthereum-gradeEthereum-gradeLowerHigh (limited)
Withdrawal Time7 daysHoursInstantInstant
EVM Compatibility100%Varies100%Limited
Transaction CostVery LowLowVery LowNear-zero
ThroughputHighHighVery HighUnlimited
ComplexityMediumHighLowMedium
Proving CostLowHighNoneNone
Why Optimistic Rollup?
  • ✅ Best balance of security and cost
  • ✅ Full EVM compatibility
  • ✅ Lower operational costs than ZK
  • ✅ Proven technology (Optimism, Arbitrum)

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📈 Scalability Analysis

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How TeQoin Achieves 1000+ TPS

Technique #1: Off-chain Execution 
Ethereum L1: Execute on-chain
TeQoin L2: Execute off-chain, post results

Cost Savings: 100x+ cheaper execution
Technique #2: Batch Compression 
Individual TXs on L1: ~180 bytes each
Batched TXs on L2: ~12 bytes each (compressed)

Data Savings: 15x compression
Technique #3: Calldata Optimization 
Using calldata (cheap) instead of storage (expensive)

Cost Reduction: 10x cheaper per byte
Combined Effect: 
Total Scalability: 100x (execution) × 15x (compression) × 10x (calldata)
                  ≈ 15,000x cost reduction
                  ≈ 1000+ TPS (vs. 15-30 on L1)

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🔮 Future Enhancements

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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

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🛠️ For Developers

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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

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📚 Technical Resources

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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

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External Resources

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🎓 Academic Background

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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

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🔬 System Invariants

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Guaranteed Properties

TeQoin maintains these invariants:
  1. Conservation of Funds
   ∀ time t: ETH_on_L2(t) ≤ ETH_locked_on_L1(t)
L2 ETH never exceeds L1 backing
  1. Data Availability
   ∀ L2_block: transaction_data ∈ L1_calldata
All transaction data on L1
  1. State Validity
   ∀ state_root: ∃ fraud_proof ⟹ state_reverted
Invalid states can be proven and reverted
  1. Liveness
   Users_can_force_include_transactions_via_L1
Censorship resistance guarantee
Ready to dive deeper? Continue to Optimistic Rollup Details →