Ethereum Layer 2 Network Scroll Secures $50M in Funding, Valued at $1.8B

Ethereum Layer 2 Network Scroll Secures $50M in Funding, Valued at $1.8B, bringing its total funding to $83 million. Investors in the funding round included Polychain Capital, Sequoia China, Bain Capital Crypto, Moore Capital Management, Variant Fund, Newman Capital, IOSG Ventures, and Qiming Venture Partners. According to a source with direct knowledge, the funding round values Scroll at $1.8 billion. Scroll uses zk-rollups technology to help scale Ethereum and increase transaction speed.

Scaling Ethereum with Scroll’s zk-rollups technology

Founded in 2021, Scroll is a Layer 2 network that processes transactions off Ethereum on its own network using zk-rollups technology. It then ports the transaction data back to Ethereum, helping increase transaction speed and reduce costs. The network’s zkEVM batches transactions and generates proof that they are legitimate, which is broadcast to Ethereum, and the transactions get approved.

Scroll’s Competitive Edge

Scroll’s competitive edge lies in its three design principles: community-driven, security first, and decentralization at every level. The network launched its zkEVM on the Goerli testnet last week and is set to launch its mainnet in the next three to four months. Scroll co-founder Sandy Peng said the network reached one million unique addresses and 16 million transactions during its pre-alpha testnet phase.

Expanding Scroll’s Ecosystem

With the fresh capital, Scroll plans to continue building its product, launch its mainnet, and expand its ecosystem. Peng added that the network aims to increase its current team size from around 60 to nearly 100 in the near future. Scroll is one of several Ethereum scaling networks that use zk-rollups, including Polygon, StarkWare, and Matter Labs.

Conclusion:

Scroll’s successful funding round shows the growing interest in Ethereum Layer 2 networks that use zk-rollup technology to scale the network. With its competitive edge in its core values and plans to launch its mainnet soon, Scroll is poised to become a major player in the space. Investors like Polychain Capital and Sequoia China are backing the network, which has the potential to bring Ethereum to a billion users.

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