Scroll, an Ethereum layer-2 network, has announced the launch of its Euclid upgrade, which marks a significant transformation in the protocol's history. According to Scroll Labs, this upgrade transitions Scroll from a "stage 0" to a "stage 1" rollup, allowing the network to retire some centrally-controlled safety features and become more decentralized. The Scroll team described Euclid as the "biggest leap forward" for the network, demonstrating its commitment to pushing the boundaries of zero-knowledge rollup technology. The upgrade includes features designed to improve network performance, boost application compatibility, and reduce data storage costs.
Additionally, it introduces account abstraction, making wallets more user-friendly by allowing developers to automate certain features through smart contracts. Despite the significant upgrade, Scroll has experienced a decline in user activity, with its total value locked (TVL) plummeting to an all-time low of $62.6 million, down 94% from its peak of over $900 million. The TVL began to decline after a snapshot was taken for the SCROLL token airdrop on October 18, 2024.
The Euclid upgrade marks a significant milestone for Scroll, as it becomes the first zero-knowledge rollup to reach the "stage 1" phase, according to the framework proposed by Ethereum co-founder Vitalik Buterin. This framework categorizes rollups based on their degree of decentralization, with "stage 1" indicating a higher level of decentralization.
The upgrade helps decentralize Scroll's sequencer, ensuring that the team cannot unilaterally block or censor transactions, and demonstrates the network's commitment to improving its security and decentralization.