Scroll: Deep Dive into the zkEVM Layer 2 Scaling Ethereum

Modified on Tue, 23 Sep at 5:56 PM

Ethereum's popularity has highlighted its core challenge: scalability. High demand leads to network congestion and prohibitive gas fees, hindering user experience and application growth. Layer 2 (L2) scaling solutions have emerged as the critical answer, and among the most technologically advanced and anticipated is Scroll. Built on the cutting edge of zero-knowledge cryptography, Scroll aims to significantly enhance Ethereum's throughput and reduce costs while maintaining security and compatibility.

What is Scroll and Its Technology?

Scroll is a Layer 2 scaling solution for Ethereum. Think of Layer 2s as express lanes built alongside the main Ethereum highway (Layer 1). They process transactions separately (Off-chain) and then submit proofs or summarized data back to the mainnet, inheriting its security while easing congestion.

Scroll utilizes zk-Rollup (Zero-Knowledge Rollup) technology. Here's how it works:

Bundling: It bundles or "rolls up" thousands of transactions executed on the Scroll L2 network.
Proof Generation: Instead of replaying all transactions on Ethereum, Scroll generates a cryptographic validity proof (Specifically a zk-SNARK or similar zero-knowledge proof). This proof mathematically guarantees that all transactions within the bundle are valid without revealing the individual transaction details themselves.
Verification on L1: This compact proof is submitted to a verification contract on the Ethereum mainnet. Verifying the proof is computationally much cheaper and faster than verifying each transaction individually.

The Core Technology: zkEVM

Scroll's defining feature is its implementation of a zkEVM (Zero-Knowledge Ethereum Virtual Machine). This is a virtual machine that executes smart contracts compatibly with the standard Ethereum Virtual Machine (EVM) but also generates zero-knowledge proofs for this execution.

Bytecode-Level Equivalence: Scroll aims for bytecode-level EVM equivalence. This is crucial because it means existing Ethereum applications and smart contracts (Written in Solidity, Vyper, etc.) can be deployed directly onto Scroll with minimal or no code modifications. Developers can use the same tools and workflows they are familiar with on Ethereum.
Architecture: Scroll's architecture consists of key components: 1) Scroll Nodes: Handle transaction sequencing, coordination, and relaying between L1 and L2. 2) Roller Network: A decentralized network of provers responsible for generating the complex ZK proofs for transaction batches. 3) Rollup and Bridge Contracts: Smart contracts on Ethereum L1 that verify proofs, ensure data availability, and manage asset bridging between L1 and L2.

Highlight Features

Scroll stands out in the competitive L2 landscape due to several key features:

Seamless EVM Equivalence: This is arguably Scroll's most significant advantage. It lowers the barrier for existing Ethereum projects to migrate and benefit from L2 scaling, fostering rapid ecosystem growth. Users can interact with Scroll using familiar wallets like MetaMask.
Ethereum-Grade Security: As a zk-Rollup, Scroll derives its security directly from the Ethereum mainnet. The validity proofs ensure that only correct state transitions are accepted on L1, preventing fraudulent activity on the L2.
Scalability and Efficiency: Scroll significantly increases transaction throughput compared to Ethereum L1 and drastically reduces gas fees by batching transactions and using efficient ZK proofs. Technical upgrades, like implementing EIP-4844 data blobs (Proto-Danksharding), further reduce costs.
Decentralization Roadmap: Scroll is committed to progressive decentralization. This involves decentralizing the sequencer (Responsible for ordering transactions) and the prover network (Responsible for generating proofs), reducing reliance on the core team and enhancing censorship resistance. The SCR token plays a key role in this roadmap.
Community and Ecosystem Focus: Scroll launched incentive programs like "Scroll Sessions" (Awarding "Scroll Marks" for on-chain activity) and "Scroll Canvas" (An on-chain attestation platform using Ethereum Attestation Service - EAS) to engage users and build a vibrant community. This focus has helped it achieve significant Total Value Locked (TVL) and user activity.
Open Source Collaboration: Scroll was developed in collaboration with the Ethereum Foundation's Privacy and Scaling Explorations (PSE) group, emphasizing an open and community-driven approach.

Background of Scroll and the Founding Team

Scroll is a company, reportedly having received Series B funding and potentially incorporated in Seychelles, founded in 2013 by Sandy Peng, Ye Zhang, and Haichen Shen. The company operates as a blockchain-based network for EVM-compatible solutions. Scroll raised USD 80 million from investors such as Polychain, Bain Capital Crypto, and Moore Capital Management, with a reported valuation reaching USD 1.8 billion

What is the Scroll Token (SCR)?

Scroll has its own native token, SCR. After much anticipation, the SCR token was officially launched around October 2024.

Purpose: SCR serves multiple critical functions within the Scroll ecosystem:

Governance: SCR token holders can participate in the governance of the Scroll protocol via the Scroll DAO, voting on proposals related to upgrades and development. This was intended to be active from the token's launch.
Protocol Decentralization: SCR is integral to the roadmap for decentralizing the prover and sequencer networks. It will likely be used for staking by provers and sequencers, aligning incentives and securing the network.
Ecosystem Utility: Potential future uses include staking for yield, enabling gas-free transactions, and coordinating ecosystem incentives.
Transaction Fees: While users often pay fees in ETH on L2s, some sources mention SCR being used for transaction fees within the Scroll network itself. (Note: The primary gas token on most ETH L2s remains ETH, but native tokens often gain utility in fee structures over time.)

Token Allocation and Tokenomics

The SCR token has a total maximum supply of 1,000,000,000 (1 billion) SCR.

The initial token distribution and allocation details reported around the launch (October 2024) were structured to support long-term growth and community involvement. While specific percentages might evolve or be detailed further by the Scroll Foundation, general allocations, as of 28 May, 2025, included:

Airdrops 15%: Allocated to reward early users, community members, researchers, open-source contributors, and ecosystem participants. The first airdrop occurred concurrently with the token launch.
Ecosystem and Growth 35%: Funds dedicated to fostering development, partnerships, and adoption within the Scroll ecosystem.
Scroll Contributors 10%: Allocation for the core team and advisors, generally subject to vesting schedules, such as a 1-year cliff and multi-year vesting.
Investors 17%: Allocation for venture partners who supported the project's development.
Scroll Foundation / DAO Treasury 10%: Funds allocated by the Foundation or future DAO for long-term strategic initiatives, grants, and operational needs.

Interesting information about SCR

According to data from the CoinMarketCap website on 28 May 2025, the SCR token has a market capitalization (Market cap) of USD 64,596,188.84, or approximately 2,114,293,228.31 Thai Baht.

At the time of writing this article, the SCR token is trading at approximately $0.3400, or about 11.11 Baht per 1 SCR. SCR reached its all-time high price of $1.45 (or 47.91 Baht per 1 SCR) on 16 October 2024.

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