More than $50 million was raised in the most recent investment round for the Ethereum Layer-2 network Scroll on Monday, March 6. This network makes use of a mechanism known as zk-roll-ups.
Polychain Capital, Sequoia China, Bain Capital Crypto, Moore Capital Management, Variant Fund, Newman Capital, IOSG Ventures, and Qiming Venture Partners were among the leading venture capital firms that took part in the most recent fundraising round.
The scroll has not revealed much information concerning the nature of the funding round or the platform’s valuations. But, according to a source acquainted with the situation who spoke (1) with the cryptocurrency site The Block, the most recent investment took place at valuations of $1.8 billion.
Scroll raised a total of $33 million in the capital throughout its two prior rounds of fundraising. On the other hand, the Ethereum Layer-2 platform didn’t reveal its valuations back when it was available!
Scroll has now successfully raised $83 million in funding so far, including the most recent funding round.
The Layer-2 platform that Ethereum uses Back in 2021 when Scroll first entered the market, the company’s objective was to expand the Ethereum blockchain to accommodate one billion users.
Since it is a Layer 2 blockchain, Scroll was able to conduct transactions independently of the Ethereum blockchain.
The transactions are subsequently ported back to the Ethereum mainnet, which helps to increase the volume of transactions while simultaneously lowering transaction fees.
Use of zk-Rollups
The zk-rollups technique is implemented in the Layer-2 Scroll blockchain to increase the level of scalability the network achieves.
The Scroll zkEVM, also known as the zero-knowledge Ethereum virtual machine, combines many transactions into a single batch while simultaneously generating proof that the combined transactions are genuine. When some time has passed, it then sends this proof to the Ethereum mainnet, validating the transactions.
Just one week ago, Scroll moved out of the pre-alpha testnet phase and debuted its zkEVM on the Goerli testnet.
According to Sandy Peng, one of the co-founders of Scroll, the early traction on the pre-alpha testnet was very good.
The Ethereum Layer 2 platform has achieved one million unique addresses in addition to 16 million transactions despite the fact that it is still in the pre-alpha stage of development. According to Peng, the launch of the mainnet is scheduled to happen within the next three or four months.
The scroll is one of the many Ethereum scaling systems that are now using zk-rollups as a key component of their architecture.
Polygon Labs, Matter Labs, and StarkWare are some other companies currently participating in this activity.
Sandy Peng has stated that community-driven, security first, and decentralization at every level are the three fundamental ideals and design principles that guide Scroll’s development. Because of this, the platform has an advantage over those of its competitors.
Scroll has announced that it intends to put the newly acquired cash toward developing its product, introducing its mainnet, and expanding the ecosystem. Peng mentioned that they are considering expanding their staff from sixty to one hundred members in the future.