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Key points
Scroll is a scaling solution that processes transactions off the main Ethereum blockchain, reducing congestion and speeding up network operation for users even during peak periods.
Thanks to ZK-rollup technology, Scroll allows for reduced gas fees on Ethereum, making DApps and DeFi services more accessible to users.
Scroll is seamlessly integrated with Ethereum, allowing developers to use existing tools and smart contracts without having to completely rewrite their code.
Introduction
If you have ever used Ethereum, you may have noticed that during periods of high demand, it can be a bit slow and expensive. As more people connect to Ethereum to use decentralized applications (DApps), the network is more likely to become congested, leading to higher fees and slower transaction speeds. This is where Scroll comes in.
Scroll is a project aimed at making Ethereum faster, cheaper, and more efficient, without sacrificing the security and decentralization that are the network's strengths. Let's take a closer look at what Scroll is and what scaling solutions it offers.
What is Scroll (SCR)?
Scroll is a layer 2 scaling solution specifically designed for Ethereum. In simple terms, it's a technology that works on top of the main Ethereum network (layer 1) to make its operation more efficient. One of the key components of Scroll is a cryptographic method called ZK-rollups (zero-knowledge rollups), which changes how the network operates to speed up transactions and ensure their security.
With Scroll, transactions are processed on the Ethereum mainnet, helping to avoid congestion. Important data is then sent back to Ethereum's level 1 for verification. This means you can still use all the necessary DApps and tools on Ethereum without high fees and long waiting times for confirmations.
Why does Ethereum need Scroll?
Ethereum can be compared to a busy highway. When too many people try to use it at once, it slows down, and the cost of using it (gas fee) increases. As we all know, no one likes to pay high fees, especially when you're just trying to send cryptocurrency to a friend or use a DApp.
Ethereum developers are working hard on solutions to fix this, but the focus on security and decentralization makes scaling difficult. This is where layer 2 solutions, like Scroll, come into play — they help relieve some of the load from the Ethereum mainnet while maintaining its security and decentralization.
How Scroll works
Basics of rollups
As we learned, rollups are a smart way to process a large number of transactions from the Ethereum mainnet (off-chain) and then send the data of those transactions back to level 1 for confirmation. It's like creating a group chat, instead of sending messages to each person individually.
There are two types of rollups: optimistic rollups and zero-knowledge rollups (ZK-rollups). Scroll uses ZK-rollups, which provide additional security. These rollups use so-called zero-knowledge proofs (ZKP) to ensure the correct processing of transactions off-chain. This way, Ethereum does not need to double-check everything, making the entire process much faster and cheaper.
Three-tier architecture of Scroll
The Scroll system consists of three main components:
Execution layer (Settlement layer) — is Ethereum itself. Scroll uses Ethereum's level 1 for tasks such as ensuring data availability and verifying ZK-rollup proofs. Essentially, Ethereum acts as the final arbiter, confirming that everything is legitimate.
Sequencing layer: here Scroll processes and organizes transactions. This layer groups transactions into batches and sends the information back to Ethereum for secure storage and verification.
Proving layer: this is where the real magic of ZK-rollups happens. A multitude of computers (called Provers) work together to generate zero-knowledge proofs that show that transactions have been processed correctly. This layer ensures that everything is secure and ready for Ethereum's approval.
Zero-Knowledge Ethereum Virtual Machine (zkEVM)
One of the most impressive components of Scroll is the zkEVM (Zero-Knowledge Ethereum Virtual Machine). It sounds complicated, but basically, it means that Scroll can run transactions similar to those on Ethereum using ZK-rollups without changing how Ethereum operates. Developers do not need to rewrite code or create new tools to work with Scroll, which is a huge plus.
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 execution accuracy:
Confirmation: first, the user sends a transaction either to the Ethereum mainnet (level 1) or directly to Scroll (level 2). If the transaction is executed and added to a block, it is considered confirmed.
Execution: confirmed transactions are combined into a batch. This batch is sent to the Ethereum mainnet, which ensures the correct recording of data.
Completion: Finally, Scroll creates a validity proof (thanks to the zero-knowledge rollups we mentioned earlier) and sends it to Ethereum. Once Ethereum confirms this proof, the transaction will be completed. That’s it! Now your transaction is part of the official Ethereum blockchain, all without delays.
Advantages of Scroll
1. Improved scalability
By processing transactions off-chain, Scroll significantly increases the number of transactions that Ethereum can handle. This makes the network much faster, which is especially important as more people start using decentralized applications (DApps) on Ethereum.
2. Reduced transaction fees
Scroll is a great assistant for your crypto wallet. Since it can batch transactions through ZK-rollups, the cost of using Ethereum is significantly reduced. Thus, using DApps and transferring cryptocurrency becomes easier and more convenient.
3. Maintaining security
Although transactions are processed off-chain, Scroll uses advanced ZK-rollups to ensure security and reliability. You don’t need to worry about the safety of your transactions — Scroll is designed to provide the same level as Ethereum.
4. Compatibility with Ethereum
Scroll does not require developers to change the way they create DApps. Its zkEVM ensures full compatibility with the existing Ethereum infrastructure, meaning developers can easily start using Scroll without needing to learn an entirely new system.
SCR Tokens
SCR tokens are an integral part of the Scroll ecosystem. Below are the main use cases for SCR tokens:
Governance: if you have SCR tokens, you can influence the development of Scroll. SCR holders can vote on key decisions, from protocol updates to network operations.
Network support: Scroll relies on two important groups: provers and sequencers. They ensure the smooth operation of the network by verifying transactions and bundling them into blocks. SCR tokens are used to reward their efforts, helping to maintain decentralization and security.
Staking: users and validators can stake SCR tokens to ensure the security of the network and earn rewards. This is an important incentive for ensuring the functionality of the Scroll network.
In conclusion
Scroll (SCR) is an innovative layer 2 scaling solution that addresses Ethereum's scalability issues using zero-knowledge rollups. By improving transaction throughput, reducing costs, and maintaining compatibility with the Ethereum ecosystem, Scroll simplifies and lowers the cost of user and developer interactions with the Ethereum blockchain.
As Ethereum continues to grow and evolve, projects like Scroll will be crucial in ensuring that the network can handle the increasing demand for decentralized applications and services.
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