Scroll, a Layer 2 Ethereum network that uses zk-rollups technology, has secured $50 million in its latest fundraising round, boosting its valuation to $1.8 billion.
Accoding to Bitcoinke, the round occurs at a time when funding to the whole sector has slowed following a terrible 2022 in which many companies, like the crypto exchange FTX, went bankrupt.
Still, the founding round round included a number of noteworthy firms, indicating that some of the sector’s largest investors remain interested.
Polychain Capital, Sequoia China, Bain Capital Crypto, Moore Capital Management,Variant Fund, Newman Capital, IOSG Ventures, Qiming Venture Partners took part in the funding round.
Scroll, which was founded in 2021, wants to scale Ethereum to a billion users by deploying a Layer 2 network that handles Ethereum transactions on its own network. The transaction data is then sent returned to Ethereum, which speeds up transactions and lowers costs.
Scroll’s network leverages ZK-rollup technology, notably its zkEVM, to accomplish scalability (zero-knowledge Ethereum virtual machine).
The company can use this technology to batch transactions and generate a confirmation of their authenticity.
After construction, the evidence is broadcast to Ethereum for approval, allowing transactions to be handled more effectively.
Scroll exited its pre-alpha testnet stage last week by launching its zkEVM on the Goerli testnet.
The pre-alpha testnet gained traction quickly, with Scroll Co-Founder Sandy Peng remarking in an interview that it had one million unique addresses and 16 million transactions. According to Peng, the mainnet will be launched within the next three to four months.
Other Ethereum scaling networks, such as Polygon, StarkWare, and Matter Labs, use ZK-rollups in addition to Scroll.
According to Peng, one of Scroll’s co-founders, the network’s competitive advantage is based on three basic design principles: community-driven, security-first, and decentralization at all levels.
Scroll intends to use the $50 million acquired in the new funding round to continue developing its product, deploy its mainnet, and grow its ecosystem. In the near future, the company intends to expand its team from roughly 60 to over 100 people.
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