Ethereum’s scalability challenges have long been a bottleneck for mass adoption. High gas fees, network congestion, and slow transaction finality have pushed developers and users toward Layer 2 (L2) solutions. Among the most promising of these is Scroll, a zkRollup-based L2 network designed to scale Ethereum while maintaining full EVM equivalence. With strong technical foundations, growing ecosystem momentum, and the recent launch of its $SCR token, Scroll is emerging as a key player in the next phase of Ethereum’s evolution.
What Is Scroll?
Scroll is a zero-knowledge Ethereum Layer 2 scaling solution built using zkRollup technology. Founded in 2021 by Ye Zhang, Sandy Peng, and Haichen Shen, the project’s mission is to enhance Ethereum’s performance and usability without sacrificing security or compatibility.
Unlike optimistic rollups that rely on fraud proofs and long challenge periods, Scroll uses validity proofs—cryptographic evidence that every transaction batch is correctly executed. This ensures near-instant finality and trustless security, all while reducing transaction costs by batching operations off-chain and settling proofs on Ethereum.
A core differentiator of Scroll is its EVM-equivalent zkEVM. This means developers can deploy Ethereum-native smart contracts on Scroll without modification, significantly lowering the barrier to entry and accelerating ecosystem growth.
How Scroll Works: The Power of zkRollup
Zero-Knowledge Proof Architecture
At the heart of Scroll’s scalability is its dual-layer zero-knowledge proof system, engineered for efficiency, compatibility, and decentralization.
Layer 1: DApp-Level Proofs
The first layer generates proofs directly from user transactions and smart contract executions. It uses a universal and transparent zk-proof system with three critical properties:
- Fast proving with minimal keys: Users or provers can generate proofs efficiently, even on consumer hardware.
- Infinite scalability with low space complexity: Supports any smart contract logic without performance degradation.
- No trusted setup for DApps: Eliminates centralized trust assumptions across applications.
This design allows privacy-preserving dApps and user-generated proofs, while enabling provers (called "Rollers") to serve multiple applications without storing bulky proving keys.
Layer 2: Proof Aggregation
The second layer aggregates individual proofs into a single succinct proof—a process known as recursive proof composition. This final proof is submitted to Ethereum and verified by a lightweight smart contract.
Key advantages:
- Short proof size: Reduces gas costs on Ethereum.
- EVM-friendly verification: Enables seamless integration with existing Ethereum tooling.
This two-tiered architecture balances performance and decentralization, making Scroll one of the most technically robust zkEVM implementations today.
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The Scroll Rollup Process: From Transaction to Finality
Scroll’s network consists of three core components:
- Scroll Node: Collects transactions, constructs L2 blocks, and submits data to Ethereum.
- Roller Network: A decentralized set of provers that generate zero-knowledge proofs for each block.
- Rollup Contract: An on-chain Ethereum contract that verifies proofs and finalizes state updates.
Step-by-Step Rollup Workflow
- The Sequencer in the Scroll Node processes transactions and creates an execution trace (T).
- T is sent to a randomly selected Roller, which generates a zero-knowledge proof (P).
- Multiple P proofs are collected and sent to another Roller for aggregation, producing a final proof (A).
- A is submitted to the Rollup Contract on Ethereum for verification.
- Once validated, the block achieves finality.
Block Finality Stages
- Pre-submitted: Block proposed by Sequencer; usable if trusted.
- Submitted: Data posted to Ethereum; availability guaranteed.
- Finalized: Proof verified on-chain; cryptographically secured.
This process ensures that users enjoy fast, low-cost transactions while inheriting Ethereum’s ultimate security.
Scroll’s Position in the Layer 2 Landscape
Scroll has rapidly gained traction in the Ethereum ecosystem:
- $960M+ Total Value Locked (TVL) before token generation event (TGE)
- Hosts Aave V3 with over $330M in deposits
- $367M in bridge deposits; remainder from native activity
- Over 255,000 weekly active addresses
- Two native DEXs and growing DeFi suite including yield farming and lending protocols
Notably, Scroll is already profitable, with validators earning protocol revenue. At peak, daily revenue reached $100,000, signaling strong economic sustainability.
Ecosystem Partnerships
Scroll’s compatibility has attracted major players:
- Lido, Ether.Fi, Chainlink, and AAVE already live on mainnet
- Uniswap and other top-tier dApps have announced plans to deploy
This broad adoption reflects confidence in Scroll’s technology and long-term viability.
$SCR: The Governance and Utility Token
$SCR is the native token of the Scroll network, playing a central role in governance, security, and network operations.
Core Use Cases
- Governance Rights
As Scroll transitions toward decentralization, $SCR holders will govern protocol upgrades via the Scroll DAO. Voting power is proportional to token holdings. - Proving Rights
$SCR incentivizes external parties to operate **Rollers**—the nodes that generate zero-knowledge proofs. Staking $SCR can grant access to proving rewards, fostering a competitive and decentralized prover network. - Sequencing Rights
The Sequencer orders transactions and produces blocks. $SCR introduces a bidding mechanism for sequencing rights, ensuring censorship resistance and liveness through economic incentives.
👉 Learn how token utility drives long-term value in Layer 2 ecosystems.
Token Distribution and Airdrop Details
$SCR launched with a total supply of 1 billion tokens, distributed as follows:
- Airdrop Rewards: 15%
- Ecosystem Development: 35%
- Early Contributors: 23%
- Investors: 17%
- Foundation: 10%
The airdrop was split into two phases:
- 7% distributed on October 22, following a snapshot taken on October 19
- Remaining 8% reserved for future community incentives
This balanced allocation supports long-term growth, developer incentives, and community engagement.
Frequently Asked Questions (FAQ)
Q: Is Scroll fully EVM-compatible?
Yes. Scroll uses an EVM-equivalent zkEVM, meaning it supports native Ethereum smart contracts without requiring code changes. This enables seamless migration for developers and users alike.
Q: How does Scroll differ from other zkEVMs?
Scroll stands out due to its transparent setup, lack of trusted ceremonies, and dual-layer proof system. Unlike some competitors that use custom VMs or require recompilation, Scroll preserves full bytecode-level compatibility with Ethereum.
Q: Can anyone become a Roller (prover)?
Eventually, yes. While currently permissioned during early stages, Scroll plans to open the Roller network to public participation. $SCR staking will likely be required to join as a decentralized prover.
Q: What makes zkRollups more secure than optimistic rollups?
zkRollups publish cryptographic validity proofs on Ethereum, ensuring transactions are correct by default. Optimistic rollups assume validity and rely on challenge periods, which delay finality and introduce security windows.
Q: Where can I use $SCR tokens?
Initially, $SCR can be used for governance participation, staking to support proving, and future utility like paying for sequencing rights or ecosystem services.
Funding and Valuation
Scroll has raised $80 million across two major rounds:
- $30M Series A (April 2022): Led by Polychain Capital and Bain Capital Crypto
- $50M undisclosed round (March 2023): Co-led by Polychain Capital and Sequoia Capital
With a post-funding valuation of $1.8 billion, Scroll ranks among the most highly valued pre-token L2 projects—reflecting strong institutional confidence in its technology roadmap.
Conclusion
Scroll represents a major leap forward in Ethereum scaling. By combining zkRollup security, full EVM equivalence, and a sustainable economic model powered by $SCR, it offers a compelling alternative in the competitive L2 landscape.
With a thriving ecosystem, strong developer support, and growing user adoption, Scroll is well-positioned to become a foundational layer in Ethereum’s future—delivering scalability without compromise.
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