What is Scroll (SCR)?

By CMC AI
18 January 2026 10:04PM (UTC+0)

TLDR

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

  1. Purpose: Solves Ethereum’s scalability bottlenecks without compromising security.

  2. Technology: zkEVM architecture ensures seamless compatibility with Ethereum tools.

  3. Governance: Community-driven via the Scroll DAO, though currently under redesign.

Deep Dive

1. Purpose & Value Proposition

Scroll addresses Ethereum’s scalability limitations—high fees and slow speeds—by processing transactions off-chain and verifying them on Ethereum via cryptographic proofs. This preserves Ethereum’s security while enabling faster, cheaper transactions. Its mission is to make decentralized applications accessible without trade-offs between scalability and security, targeting developers seeking frictionless migration from Ethereum (Scroll Documentation).

2. Technology & Architecture

As a zkEVM (Zero-Knowledge Ethereum Virtual Machine), Scroll executes Ethereum smart contracts off-chain, using zero-knowledge proofs to compress transaction data. This ensures full compatibility with Ethereum’s tooling (e.g., MetaMask) and developer experience. Key innovations include its modular design, which separates proof generation from settlement, optimizing efficiency and reducing costs (Scroll Architecture).

3. Tokenomics & Governance

The SCR token facilitates governance via the Scroll DAO, where holders vote on protocol upgrades and treasury allocations. However, governance is currently paused for redesign (since September 2025), shifting toward a hybrid model with foundation oversight. SCR’s utility includes staking for network security and fee payments, though tokenomics details remain under refinement (The Block).

Conclusion

Scroll fundamentally rethinks Ethereum scaling by prioritizing security and compatibility through zk-rollup technology. How will its governance redesign balance decentralization with operational efficiency as adoption grows?

CMC AI can make mistakes. Not financial advice.