What is Scroll (SCR)?

By CMC AI
08 December 2025 05:01AM (UTC+0)

TLDR

Scroll (SCR) is an Ethereum Layer 2 scaling solution using zero-knowledge proofs (zk-SNARKs) to enable faster, cheaper transactions while preserving Ethereum’s security and compatibility.

  1. Purpose – Solves Ethereum’s scalability bottlenecks without compromising decentralization.

  2. Tech – Built on zkEVM, allowing seamless deployment of Ethereum smart contracts.

  3. Ecosystem – Focuses on developer empowerment and real-world asset integration.

Deep Dive

1. Purpose & Value Proposition

Scroll aims to make Ethereum scalable for global adoption by addressing high fees and slow speeds. Its zk-rollup architecture batches transactions off-chain and verifies them on Ethereum using zk-SNARKs, reducing costs by ~90% while inheriting Ethereum’s security. The project prioritizes full Ethereum Virtual Machine (EVM) equivalence, letting developers migrate dApps without code changes (Scroll Documentation).

2. Technology & Architecture

Scroll uses a zkEVM (zero-knowledge Ethereum Virtual Machine), which executes Ethereum-native smart contracts in a zk-rollup environment. This combines Ethereum’s developer ecosystem with Layer 2 efficiency. Key innovations include:
- EVM equivalence: Supports existing Ethereum tooling (MetaMask, Hardhat).
- Decentralized provers: Anyone can participate in proof generation, enhancing censorship resistance.
- Blob transactions: Leverages Ethereum’s Dencun upgrade for cost-efficient data storage.

3. Ecosystem & Use Cases

Scroll’s ecosystem targets DeFi, institutional adoption, and cross-chain interoperability:
- DeFi: Hosts protocols like Pencils Protocol ($286M TVL as of October 2025) for yield farming and liquid staking.
- Enterprise: Partners with Ether.fi Cash to enable corporate treasuries to manage crypto-native operations on Scroll.
- Global expansion: Actively engages Southeast Asian markets via developer grants and exchange integrations.

Conclusion

Scroll is a security-first Ethereum scaling solution that balances scalability, decentralization, and compatibility through its zkEVM tech stack. While its governance model faces restructuring challenges, its technical foundations and ecosystem growth highlight long-term potential. How will Scroll’s evolving governance impact its decentralization ethos as adoption scales?

CMC AI can make mistakes. Not financial advice.