What is Scroll (SCR)?

By CMC AI
27 December 2025 03:26PM (UTC+0)

TLDR

Scroll (SCR) is an Ethereum Layer 2 scaling solution using zero-knowledge proofs to enable faster, cheaper transactions without compromising security or compatibility with Ethereum’s ecosystem.

  1. Ethereum-aligned scaling – Processes transactions off-chain and verifies them on Ethereum via zk-proofs.

  2. Developer-first design – Full compatibility with Ethereum’s tools and smart contracts.

  3. Community-driven governance – Managed by a DAO to decentralize decision-making.

Deep Dive

1. Purpose & Value Proposition

Scroll addresses Ethereum’s scalability bottleneck by moving computation off-chain while maintaining security via zero-knowledge rollups (zk-Rollups). It batches transactions into compressed proofs verified on Ethereum, reducing costs and latency. Unlike some competitors, Scroll prioritizes full Ethereum Virtual Machine (EVM) equivalence, letting developers deploy existing Ethereum contracts without modifications (Scroll Docs).

2. Technology & Architecture

As a zkEVM (zero-knowledge Ethereum Virtual Machine), Scroll combines Ethereum’s developer ecosystem with ZK-proof efficiency. Its architecture includes:
- Sequencer: Orders transactions off-chain.
- Prover: Generates cryptographic proofs for transaction validity.
- Rollup Contract: Posts proofs to Ethereum for finality.
This setup enables ~3,000 transactions per second (TPS) compared to Ethereum’s ~15 TPS, with fees as low as $0.01 (Scroll Blog).

3. Tokenomics & Governance

SCR tokens facilitate governance through the Scroll DAO, where holders vote on protocol upgrades, treasury allocations, and ecosystem grants. The DAO’s structure aims to balance decentralization with operational efficiency, though recent leadership resignations (September 2025) triggered a governance redesign. SCR’s fixed supply of 1 billion includes allocations for community incentives, core contributors, and ecosystem growth.

Conclusion

Scroll is a technically rigorous Layer 2 designed to scale Ethereum while preserving its security and developer experience. Its zkEVM architecture and community-driven governance position it as a key player in Ethereum’s rollup-centric roadmap. Can Scroll maintain its decentralization ethos while accelerating adoption amid rising Layer 2 competition?

CMC AI can make mistakes. Not financial advice.