Sequencer Throughput

Sequencer throughput refers to the capacity of a blockchain or Layer 2 network to process and order transactions within a given timeframe. In decentralized exchanges, the sequencer acts as the central arbiter that determines the order of trades.

High throughput is necessary to prevent bottlenecks and keep transaction costs low during periods of high market activity. If the sequencer cannot handle the volume, latency increases and trading becomes unreliable.

This directly impacts the ability of market makers to provide liquidity and manage risk. Improving throughput is a major focus of current blockchain research and development.

It involves optimizing consensus mechanisms and data availability layers. High sequencer performance is essential for creating a user experience that rivals centralized exchanges.

It is a key technical metric for evaluating the viability of decentralized derivative protocols.