Serialization

Serialization is the process of converting complex data structures, such as nested objects or large arrays, into a linear sequence of bytes for storage or transmission. In decentralized finance, serialization is critical for recording the state of derivatives positions and managing the flow of collateral across different protocol modules.

Because blockchain storage is extremely expensive, serialization techniques must be highly efficient, often packing data into the smallest possible space. This process must also be deterministic, ensuring that the same data always results in the same byte sequence.

If serialization logic is inconsistent, it can lead to severe issues such as incorrect position accounting or the inability to retrieve stored information. As protocols grow in complexity, the need for robust and standardized serialization formats becomes increasingly important for ensuring the integrity and interoperability of the entire financial ecosystem.

It is a fundamental task that underpins the reliability of on-chain data.