What is Scroll (SCR)? Ethereum Layer 2 Scaling Solution

If you’ve used Ethereum before, you’ve probably noticed that the network can be a bit slow and that fees can get high when demand spikes. When a lot of people access Ethereum at the same time to use decentralized applications (DApps), the network can easily become congested, leading to higher fees and slower transaction speeds. This is where Scroll comes in.

Scroll is a project that was created to make Ethereum run faster, at a lower cost and with greater efficiency, while still maintaining the security and decentralization that Ethereum is known for. Let’s take a look at Scroll and its scaling solutions.

What is Scroll (SCR)?

Scroll is a Layer 2 scaling solution, designed specifically for Ethereum. Simply put, it’s a technology that makes the Ethereum mainnet (Layer 1) run smoother. One of the key elements of Scroll is a cryptographic technique called zero-knowledge rollup (zk-rollup) – a breakthrough technology that speeds up transactions while maintaining security.

Scroll processes transactions off the main Ethereum chain to reduce congestion. Important data is then sent back to Ethereum’s Layer 1 to ensure everything is secure; this way, users can use DApps and tools on Ethereum without worrying about high fees or long wait times.

Why does Ethereum need Scroll?

Think of Ethereum as a busy highway: when too many people access it at the same time, the network slows down and gas costs increase. And of course, no one wants to pay high fees for simple transactions like transferring money or using a DApp.

Ethereum developers are constantly looking for solutions to this problem, but scaling the network while ensuring security and decentralization is a big challenge. This is where Layer 2 solutions like Scroll come in – helping to reduce the burden on the Ethereum mainnet while still ensuring security and decentralization.

How does Scroll work?

  1. Rollup basics

Rollups are a clever way to aggregate multiple off-chain transactions on Ethereum and then send a summary of those transactions to Layer 1 for approval, much like when we send a group message instead of sending them individually to each person to save time.

Rollups come in two flavors: optimistic rollups and zero-knowledge rollups (zk-rollups). Scroll uses zk-rollups to add an extra layer of security, using ZkP technology to confirm that off-chain transactions have been processed correctly. This eliminates the need for Ethereum to double-check everything, making the transaction process much faster and cheaper.

  1. Scroll’s Three-Layer Architecture

The Scroll system consists of three main components:

The settlement layer: This is Ethereum. Scroll uses Ethereum’s Layer 1 for tasks like data storage and zk-rollup verification. In essence, Ethereum acts as the final arbiter, confirming the validity of everything.

The sequencing layer: Here, Scroll processes and sorts transactions, groups them into batches, and sends the information back to Ethereum for storage and verification.

The proving layer: This is where the zk-rollup process takes place. A group of computers, known as provers, work together to create zero-knowledge proofs for transactions, ensuring everything is secure and ready for Ethereum to approve.

  1. The zero-knowledge Ethereum virtual machine (zkEVM)

One of the most prominent features of Scroll is the zkEVM (Zero-knowledge Ethereum Virtual Machine). This may sound complicated, but zkEVM essentially allows Scroll to perform transactions just like on Ethereum using zk-rollups, without changing the way Ethereum works. Developers do not need to rewrite code or create new tools to work with Scroll.

ZkEVM helps Scroll maintain 100% compatibility with Ethereum, making it easier for developers to use and migrate their DApps to the new system, quickly and efficiently.

How do Scroll transactions work?

Transactions on Scroll go through several important stages to ensure smooth transactions.

  1. Confirmed

Users can submit transactions to the Ethereum mainnet (Layer 1) or directly to Scroll (Layer 2). Once a transaction is processed and recorded in a block, it is considered confirmed.

  1. Committed

Confirmed transactions are batched and sent to the Ethereum mainnet to ensure the data is stored correctly.

  1. Finalized

Finally, Scroll creates a valid proof based on zk-rollup and sends it to Ethereum. Once Ethereum validates this proof, the transaction is considered finalized. The transaction becomes an official part of the Ethereum blockchain without slowing down the system.

Advantages of Scroll

  1. Better Scalability

By processing transactions off-chain, Scroll helps Ethereum process more transactions, increasing network speed, which is especially useful when many people use decentralized applications (DApps) on Ethereum at the same time.

  1. Reduced Transaction Fees

Scroll helps save significantly on transaction fees thanks to batch processing and zk-rollup, making it easier to use DApps and transfer cryptocurrencies.

  1. Strong Security

Although transactions are processed off-chain, Scroll uses advanced zk-rollup to ensure absolute security for all transactions, no different from when processed directly on Ethereum.

  1. Compatible with Ethereum

Scroll does not require developers to change the way they build DApps. With zkEVM, Scroll is fully compatible with Ethereum infrastructure, making it easy for developers to adopt without having to learn a new system.

SCR Token

The SCR token is an essential part of the Scroll ecosystem, with the following key use cases:

  1. Governance

SCR holders have the right to participate in the development of Scroll by voting on important decisions, from protocol updates to network governance.

  1. Network Support

Scroll relies on provers and sequencers, who verify transactions and stack them into blocks. SCR is used to reward their efforts, helping the network stay decentralized and secure.

  1. Staking

Users and validators can stake SCR to secure the network and receive rewards, playing a vital role in keeping Scroll safe and stable.

Conclusion

Scroll (SCR) is an innovative Layer 2 scaling solution that helps Ethereum overcome the scalability challenge thanks to zk-rollup. By increasing transaction throughput, reducing costs, and maintaining compatibility with Ethereum, Scroll makes it easier and more cost-effective for users and developers to interact with the Ethereum blockchain.

As Ethereum continues to grow, projects like Scroll will play a key role in helping the network meet the growing demand for decentralized applications and services.

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