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Key points to remember
Scroll is a scaling solution that processes transactions from the main Ethereum blockchain, reducing congestion and improving network speed for users, even during peak 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 integrates seamlessly with Ethereum, allowing developers to use their existing tools and smart contracts without having to completely rewrite their code.
Introduction
If you’ve used Ethereum before, you’ve probably noticed that the network can be a bit slow and expensive during busy periods. As more users use the Ethereum network to run decentralized applications (DApps), the network is more likely to become congested, leading to higher fees and slower transaction speeds: 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 make Ethereum special. Let’s take a look at Scroll and its scaling solutions.
What is Scroll (SCR)?
Scroll is a layer-2 scaling solution built specifically for Ethereum. In short, it’s a technology that runs on top of the Ethereum mainnet (layer-1) to facilitate its operation. One of the key components of Scroll is a cryptographic technique called zero-knowledge rollups (zk-rollups), which revolutionizes how transactions are accelerated while also being secure.
Transactions are processed off the main Ethereum blockchain, which helps avoid congestion. Then, important data is sent back to Ethereum’s layer 1 to make sure everything is correct. 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.
Usefulness of Scroll for Ethereum
We can compare Ethereum to a busy highway. When too many users try to use it at the same time, the network slows down and the cost of using it (gas fees) increases. Nobody likes paying high fees, especially when you’re just trying to send cryptocurrency to a friend or use a DApp.
Ethereum developers are devoting their energy to finding solutions to this problem, but the network’s focus on security and decentralization makes it difficult to scale. Layer 2 solutions like Scroll are ideal: they help take some of the load off Ethereum’s main network while keeping it secure and decentralized.
How Scroll works
The Basics of Rollups
As mentioned above, rollups are a convenient solution to process a large number of transactions off the Ethereum mainnet (off the blockchain) and then send a summary of those transactions to layer 1 for approval. You can think of this process as sending a text message to a group to save time instead of sending it to each person in the group individually.
There are two types of rollups: optimistic rollups and zero-knowledge rollups (zk-rollups). Scroll uses the second type of rollups because they provide additional security. These rollups use zero-knowledge proofs (ZKP) to ensure that transactions off the blockchain are processed correctly. This way, Ethereum doesn’t need to verify everything, making the whole process much faster and cheaper.
Scroll's three-layer architecture
The Scroll system has three main layers:
Settlement Layer: This is the Ethereum network itself. Scroll uses Ethereum’s Layer 1 for things like data availability and zk-rollup proof verification. Ethereum essentially acts as the final judge, confirming that everything is legitimate.
Sequencing Layer: In this case, Scroll processes and organizes transactions. This layer groups transactions into batches and sends the information back to Ethereum for retention and verification.
Proof Layer: This is where zk-rollups are used. A group of computers (called provers) work together to generate the zero-knowledge proofs that indicate that transactions were handled correctly. This layer ensures that transactions are secure and ready for Ethereum approval.
Ethereum Zero-Knowledge Virtual Machine (zkEVM)
One of the most interesting aspects of Scroll is its zkEVM (short for Ethereum zero-knowledge virtual machine). This name may sound barbaric, but it essentially means that Scroll can execute Ethereum-like transactions using zk-rollups without changing how Ethereum works. The benefit of this is that developers don’t need to rewrite their code or create new tools to work with Scroll.
zkEVM allows Scroll to remain fully compatible with Ethereum, making it easier for developers to use and migrate their DApps to this faster and more efficient system.
How Transactions Work on Scroll
Transactions on Scroll go through several important steps to ensure the process goes smoothly:
Confirmation: Initially, a user submits a transaction to the Ethereum mainnet (layer 1) or directly to Scroll (layer 2). Once the transaction is executed and added to a block, it is considered confirmed.
Validation: Confirmed transactions are then grouped into a batch. This batch is sent to the Ethereum mainnet, which ensures that the data is recorded correctly.
Finalization: Scroll creates a proof of validity (using the zero-knowledge rollups mentioned above) and sends it to Ethereum. Once Ethereum verifies this proof, the transaction is finalized. And that’s it! Your transaction is now part of the official Ethereum blockchain, all without any network slowdown.
The benefits of Scroll
1. Better scalability
By processing transactions off the blockchain, Scroll dramatically increases the number of transactions Ethereum can handle, making the network much faster, a feature that is especially important as more people start using decentralized applications (DApps) on Ethereum.
2. Reduction of transaction costs
Scroll is good news for your crypto wallet as it can batch transactions and use zk-rollups, the cost of using Ethereum decreases as a result. This makes it much more affordable to use DApps and transfer cryptocurrencies.
3. Security that remains as robust as ever
Even though transactions are processed off-blockchain, Scroll uses advanced zk-rollups to ensure the process remains 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. Compatibility with Ethereum
With Scroll, developers don’t have to change the way they build their DApps. Its zkEVM ensures full compatibility with Ethereum’s existing infrastructure, so developers can easily start using Scroll without having to re-learn a new system.
The SCR token
SCR tokens are designed to be an integral part of the Scroll ecosystem. Here are some of the main use cases for the SCR token:
Governance: If you hold SCR tokens, you can participate in the evolution of Scroll. SCR holders can vote on key decisions, from protocol updates to network operations.
Network Support: Scroll relies on two important groups, namely Provers and Sequencers who ensure the process runs in the background, verifying transactions and organizing them into blocks. SCR tokens are used to reward these two groups for their efforts in keeping transactions 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 keep the Scroll network safe and functional.
Conclusion
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 the Ethereum ecosystem, 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 be essential in ensuring the network can handle the growing demand for decentralized applications and services.
For more information
What are zero-knowledge proofs and what are their implications for blockchain?
Optimistic Rollups and Zero Knowledge Rollups: What's the Difference?
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