Ethereum Layer 2 network, Scroll, has recently raised $50 million in a funding round led by investors Polychain Capital, Sequoia China, and Bain Capital Crypto. The company declined to disclose the structure of the round, but a report claimed that Scroll’s valuation has reached $1.8 billion.
Scroll’s vision is to scale Ethereum to serve a billion users. The network processes transactions off Ethereum on its network and then ports the transaction data back to Ethereum to increase transaction speed and reduce costs. Scroll uses zk-rollup technology for its network, which helps achieve scalability. The network’s zkEVM, or zero-knowledge Ethereum virtual machine, batches transactions and generates proof that the transactions are legitimate, which is then broadcast to Ethereum for approval.
Scaling Ethereum with zk-rollups
Scroll is one of several Ethereum scaling networks that utilize zk-rollups, including Polygon, StarkWare, and Matter Labs. Scroll’s core values are community-driven, security-first, and decentralization at every level, which the company believes to be its competitive edge. Scroll’s pre-alpha testnet phase was successful, attracting one million unique addresses and 16 million transactions. The mainnet is set to launch in the next within the next quarter, and with the new funding, Scroll aims to continue building its product and expand its ecosystem.
The funding round will enable Scroll to increase its team size from approximately 60 to nearly 100 in the near future. Scroll co-founder Sandy Peng noted that the company’s traction in the pre-alpha testnet phase was strong and the team is looking forward to launching the mainnet.
Scroll’s latest funding round is a significant achievement for the Ethereum ecosystem. By using zk-rollup technology, Scroll is offering a solution to the scalability problem of Ethereum. The network’s approach to decentralization, community-driven development, and security-first principles are likely to appeal to a broader audience. The funding would enable Scroll to continue its development and increase its team size to bring its vision of scaling Ethereum to a billion users one step closer to reality.
Other participants in the round included Variant Fund, Newman Capital, Moore Capital Management, IOSG Ventures, and Qiming Venture Partners.