Definition ∞ Centralized sequencers are entities responsible for ordering and bundling transactions for processing on a blockchain, particularly in Layer 2 scaling solutions. Unlike decentralized systems, a single authority or a small group controls this ordering process. This centralization can offer efficiency gains but introduces potential points of failure or control.
Context ∞ The operational model of centralized sequencers is a point of active discussion within the blockchain scalability community. Key debates revolve around the trade-offs between performance benefits and the inherent risks associated with a single point of control, such as censorship or downtime. Future developments are likely to explore hybrid models or more robust decentralized sequencing mechanisms to mitigate these concerns.
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