Scroll Launches Euclid Upgrade to Achieve Stage 1 Decentralization

Scroll, the Ethereum layer-2 network, has launched its Euclid upgrade, marking a significant transformation in its protocol. This upgrade shifts Scroll from a "stage 0" to a "stage 1" rollup, enhancing decentralization by retiring some centrally-controlled safety features.

Key highlights of the Euclid upgrade include:

  • Improved network performance and application compatibility
  • Reduced data storage costs
  • User-friendly wallets through account abstraction, enabling automated features via smart contracts

Scroll operates as a zero-knowledge rollup, processing transactions more efficiently than the Ethereum base network. Despite the upgrade, user activity on Scroll has declined, with total value locked (TVL) falling to $62.6 million, down 94% from its peak of over $900 million.

The TVL decline began on October 18, 2024, coinciding with the SCROLL token airdrop eligibility snapshot. The transition to a "stage 1" rollup aligns with a framework proposed by Ethereum co-founder Vitalik Buterin, emphasizing decentralization standards for rollups.

The Euclid upgrade enhances Scroll's sequencer, ensuring the team cannot block or censor transactions, a risk under previous configurations. Scroll claims to be the first zero-knowledge rollup to achieve stage 1 status.