Sequencer Decentralization Risks
Sequencer Decentralization Risks refer to the vulnerabilities that arise when the process of ordering transactions is distributed among multiple parties. While decentralization improves censorship resistance and reduces single points of failure, it can also introduce latency and coordination challenges.
If the sequencer network is not properly designed, it may become susceptible to collusion or front-running. Managing these risks is a major area of research in protocol development.
It requires robust game theory models to ensure that participants act in the best interest of the network.
Glossary
Offchain Sequencer Performance
Throughput ⎊ Offchain sequencer performance refers to the transaction processing capacity of a layer-two rollup before it commits data to the primary blockchain.
Protocol Sequencer
Architecture ⎊ The protocol sequencer functions as the centralized or decentralized mechanism responsible for ordering transactions before they are processed by the underlying blockchain consensus layer.