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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 peak activity periods.
With its zk-rollup technology, Scroll can reduce Ethereum's gas fees, making dApps and DeFi services more affordable and accessible to users.
Scroll seamlessly integrates with Ethereum, allowing developers to use their existing tools and smart contracts without having to completely rewrite their code.
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 applications ("dApps"), the network is more likely to become congested, resulting in higher fees and slower transaction speeds. This is where Scroll comes into play.
Scroll is a project designed to make Ethereum faster, cheaper, and more efficient, all without sacrificing the security and decentralization that make Ethereum special. Let’s take a look at what Scroll is and its scaling solutions.
What is Scroll (SCR)?
Scroll is a Layer 2 scaling solution specifically designed for Ethereum. In simpler terms, it is a technology that operates on top of the main Ethereum network (Layer 1) to ensure everything runs 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 are processed off the main Ethereum chain, helping to avoid congestion. Then, the important data is sent back to Ethereum's Layer 1 to ensure everything is functioning correctly. This means you can still use all the dApps and tools on Ethereum, but without paying high fees or waiting long for confirmations.
Why does Ethereum need Scroll?
We can think of Ethereum as a very busy highway. When too many people try to use it at once, it slows down, and the cost of using it (gas fees) goes up. As we all know, nobody likes to pay high fees, especially when you are just trying to send cryptocurrency to a friend or use a dApp.
Ethereum developers are working hard on solutions to this problem, but the network's focus on security and decentralization makes it difficult to scale. This is where Layer 2 solutions like Scroll come into play, as they help relieve some of the burden on the main Ethereum network while keeping it secure and decentralized.
How does Scroll work?
Rollup basics
As we've learned, rollups are a smart way to process a bunch of transactions off the main Ethereum network (off-chain) and send a summary of those transactions to Layer 1 for approval. You can think of it as sending a group text message to save time instead of sending messages to people one by one.
There are two types of rollups: optimistic rollups and zero-knowledge rollups (zk-rollups). Scroll uses zk-rollups, which come with added security. These rollups use something called zero-knowledge proofs (ZKP, zero-knowledge rollups) to ensure that off-chain transactions are processed correctly. This way, Ethereum doesn't have to verify everything twice, making the process much faster and cheaper.
The three-layer architecture of Scroll
The Scroll system consists of three main parts:
Settlement Layer: this is the Ethereum itself. Scroll uses Ethereum's Layer 1 for things like data availability and zk-rollup proof verification. Basically, Ethereum acts as the final judge, confirming that everything is legitimate.
Sequencing Layer: here, Scroll processes and organizes transactions. This layer batches transactions and sends the information to Ethereum for custody and verification.
Proof Layer: this is where the magic of zk-rollups happens. A bunch of computers (called provers) collaborate to generate zero-knowledge proofs that demonstrate that transactions have been handled correctly. This layer ensures that everything is secure and ready for Ethereum's approval.
Zero-Knowledge Ethereum Virtual Machine (zkEVM)
One of the most interesting parts of Scroll is its zkEVM (short for Zero-Knowledge Ethereum Virtual Machine). It sounds complicated, but basically means that Scroll can execute Ethereum-like transactions using zk-rollups without altering how Ethereum operates. Developers don't have to rewrite their code or create new tools to work with Scroll, which is a huge advantage.
The zkEVM allows Scroll to remain 100% compatible with Ethereum, making it easier for developers to use and migrate their dApps to this faster and more efficient system.
How transactions work in Scroll
Transactions in Scroll go through several important stages to ensure everything runs smoothly:
Confirmed: first, a user sends a transaction to the main Ethereum network (Layer 1) or directly to Scroll (Layer 2). Once the transaction is executed and added to a block, it will be considered confirmed.
Committed: confirmed transactions are grouped into a batch. This batch is sent to the main Ethereum network, which ensures that the data is recorded correctly.
Finalized: finally, Scroll creates a validity proof (thanks to those zero-knowledge rollups we mentioned earlier) and sends it to Ethereum. Once Ethereum verifies this proof, the transaction will be finalized. That’s it! Your transaction is now part of the official Ethereum blockchain, all without slowing things down.
The advantages of Scroll
1. Increased scalability
By processing transactions off-chain, Scroll drastically increases the number of transactions Ethereum can handle. This makes the network much faster, which is especially important as more people start using decentralized applications (dApps) on Ethereum.
2. Lower transaction fees
Scroll is great news for your cryptocurrency wallet. As it can process transactions in batches and use zk-rollups, the cost of using Ethereum decreases. This makes it much more affordable to use dApps and transfer cryptocurrencies.
3. Security remains strong
Even though transactions are processed off-chain, Scroll uses advanced zk-rollups to ensure everything is secure and reliable. You don't have to worry about the security of your transactions: Scroll is designed to keep them as secure as if they were processed directly on Ethereum.
4. Ethereum compatible
Scroll does not require developers to change how they create their dApps. Its zkEVM ensures full compatibility with the existing Ethereum infrastructure, meaning developers can easily start using Scroll without having to learn a completely new system.
The SCR token
SCR tokens are designed to be an essential part of the Scroll ecosystem. Here are some of the main uses of the SCR token:
Governance: if you hold SCR tokens, you can have a say in the evolution of Scroll. SCR holders can vote on key decisions, from protocol upgrades to how the network operates.
Support network: Scroll relies on two important groups: provers and sequencers. They ensure that everything works behind the scenes, verifying transactions and organizing them into blocks. SCR tokens are used to reward their efforts, helping to keep things decentralized and secure.
Staking: users and validators can stake SCR tokens to help secure the network and earn rewards. This is an important incentive to maintain the security and operation of the Scroll network.
Conclusions
Scroll (SCR) is an innovative Layer 2 scaling solution that addresses the challenges of scalability by leveraging zero-knowledge rollups. By improving transaction performance, reducing costs, and maintaining compatibility with the Ethereum 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 crucial to ensure that the network can handle the increasing demand for decentralized applications and services.
Further readings
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