What Is Scroll (SCR)?

What Is Scroll (SCR)?

Intermediate
āĻ†āĻĒāĻĄā§‡āĻŸ āĻšā§Ÿā§‡āĻ›ā§‡ Oct 10, 2024
7m

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Key Takeaways

  • Scroll is a scaling solution that processes transactions off the main Ethereum chain, reducing congestion and making the network faster for users, even during busy periods.

  • With its zk-rollup technology, Scroll can lower Ethereum’s gas fees, making DApps and DeFi services more affordable and accessible for users.

  • Scroll integrates smoothly with Ethereum, allowing developers to use their existing tools and smart contracts without having to rewrite their code entirely.

Introduction

If you've ever used Ethereum, you’ve probably noticed that it can be a bit slow and expensive during times of high demand. As more people jump onto the Ethereum network to use decentralized apps (DApps), the network is more likely to get congested, resulting in higher fees and slower transaction speeds. That’s where Scroll comes in.

Scroll is a project designed to make Ethereum faster, cheaper, and more efficient, all without sacrificing the security and decentralization that makes Ethereum special. Let’s dive into what Scroll is and its scaling solutions.

What Is Scroll (SCR)?

Scroll is a Layer 2 scaling solution designed specifically for Ethereum. In simpler terms, it’s a technology that works on top of Ethereum’s main network (Layer 1) to make things run more smoothly. One of the key components of Scroll is a cryptographic technique called zero-knowledge rollups (zk-rollups), which is a game-changer for speeding up transactions while keeping them secure.

With Scroll, transactions get processed off Ethereum’s main chain, which helps avoid congestion. Then, the important data is sent back to Ethereum’s Layer 1 to make sure everything checks out. This means you can still use all the cool DApps and tools on Ethereum, but without paying high fees or waiting too long for confirmations.

Why Does Ethereum Need Scroll?

We can think of Ethereum as a busy highway. When too many people are trying to use it at once, it slows down, and the cost of using it (gas fees) goes up. As we all know, nobody likes paying high fees, especially when you're just trying to send some crypto to a friend or use a DApp.

Ethereum’s developers are working hard on solutions to fix this, but the network’s focus on security and decentralization makes it tricky to scale. This is where Layer 2 solutions like Scroll come in—they help take some of the load off Ethereum’s main network while still keeping it safe and decentralized.

How Does Scroll Work?

The basics of rollups

As we’ve learned, rollups are a clever way to process a bunch of transactions off Ethereum’s main network (off-chain) and then send a summary of those transactions back to Layer 1 for approval. You can think of it as sending a group text to save time instead of messaging people one by one.

There are two kinds of rollups: optimistic rollups and zero-knowledge rollups (zk-rollups). Scroll uses zk-rollups, which come with extra security. These rollups use something called zero-knowledge proofs (ZKP) to guarantee that the off-chain transactions are processed correctly. That way, Ethereum doesn’t have to double-check everything, making the whole process much faster and cheaper.

Scroll’s three-layer architecture

Scroll’s system has three main parts:

  1. Settlement layer: This is Ethereum itself. Scroll uses Ethereum’s Layer 1 for things like data availability and verifying zk-rollup proofs. Essentially, Ethereum acts as the final judge, confirming that everything is legit.

  2. Sequencing layer: Here, Scroll processes and organizes transactions. This layer groups transactions into batches and sends the info back to Ethereum for safekeeping and verification.

  3. Proving layer: This is where the magic of zk-rollups happens. A bunch of computers (called provers) work together to generate the zero-knowledge proofs that show the transactions were handled correctly. This layer ensures everything is secure and ready for Ethereum’s approval.

Zero-Knowledge Ethereum Virtual Machine (zkEVM)

One of the coolest parts of Scroll is its zkEVM (short for zero-knowledge Ethereum Virtual Machine). This sounds complicated, but it basically means that Scroll can run Ethereum-like transactions using zk-rollups without changing how Ethereum works. Developers don’t have to rewrite their code or create new tools to work with Scroll, which is a big plus.

The zkEVM allows Scroll to stay 100% compatible with Ethereum, making it easier for developers to use and migrate their DApps to this faster, more efficient system.

How Transactions Work on Scroll

Transactions on Scroll go through a few important stages to make sure everything runs smoothly:

  1. Confirmed: First, a user submits a transaction to either Ethereum’s mainnet (Layer 1) or directly to Scroll (Layer 2). Once the transaction is executed and added to a block, it’s considered confirmed.

  2. Committed: The confirmed transactions are then bundled together into a batch. This batch gets sent to Ethereum’s main network, which makes sure the data is properly recorded.

  3. Finalized: Lastly, Scroll creates a validity proof (thanks to those zero-knowledge rollups we talked about earlier) and sends it to Ethereum. Once Ethereum verifies this proof, the transaction is finalized. That's it! Your transaction is now part of the official Ethereum blockchain, all without slowing things down.

The Advantages of Scroll

1. Better scalability

By processing transactions off-chain, Scroll dramatically increases the number of transactions Ethereum can handle. This makes the network a lot faster, which is especially important as more people start using decentralized apps (DApps) on Ethereum.

2. Lower transaction fees

Scroll is great news for your crypto wallet. Since it can batch transactions and use zk-rollups, the cost of using Ethereum goes down. This makes it a lot more affordable to use DApps and transfer crypto.

3. Security stays strong

Even though transactions are processed off-chain, Scroll uses advanced zk-rollups to make sure everything is secure and trustworthy. There’s no need to worry about the safety of your transactions—Scroll is designed to keep them just as secure as if they were processed directly on Ethereum.

4. Compatible with Ethereum

Scroll doesn’t require developers to change how they build their DApps. Its zkEVM ensures full compatibility with Ethereum’s existing infrastructure, meaning developers can easily start using Scroll without having to learn a whole new system.

The SCR Token

SCR tokens are designed to be an essential part of the Scroll ecosystem. Here are some of the main use cases of the SCR token:

  1. Governance: If you hold SCR tokens, you can get a say in how Scroll evolves. SCR holders can vote on key decisions, from protocol updates to how the network operates.

  2. Network support: Scroll depends on two important groups: provers and sequencers. They make sure everything works behind the scenes, verifying transactions and organizing them into blocks. SCR tokens are used to reward them for their efforts, which helps keep things decentralized and secure​.

  3. Staking: Users and validators can stake SCR tokens to help secure the network and earn rewards. This is an important incentive for keeping the Scroll network safe and functional.

Closing Thoughts

Scroll (SCR) is an innovative Layer 2 scaling solution that addresses Ethereum's scalability challenges by leveraging zero-knowledge rollups. By improving transaction throughput, reducing costs, and maintaining compatibility with Ethereum’s ecosystem, Scroll makes it easier and cheaper for users and developers to interact with the Ethereum blockchain.

As Ethereum continues to grow, projects like Scroll will be critical in making sure the network can handle the increasing demand for decentralized apps and services.

Further Reading

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