Sequential Execution

Sequential Execution is a model where transactions are processed one by one in a specific order, as seen in many traditional blockchain architectures. While this ensures a clear and predictable state, it limits the total throughput of the network to the speed of a single processor.

For financial derivatives, this can create a major bottleneck during high volatility, as the order book cannot be updated fast enough. Sequential execution is simple to implement and reason about, which is why it was the standard for early blockchains.

However, as the demand for high-frequency trading grows, there is a clear trend toward architectures that support parallel processing to overcome these limitations.