Layer 2 Sequencing

Definition ∞ Layer 2 sequencing refers to the process of ordering and batching transactions on a Layer 2 scaling solution before they are submitted to the main Layer 1 blockchain. This mechanism is crucial for achieving high transaction throughput and reducing fees on secondary networks. It typically involves a designated sequencer or a decentralized set of sequencers collecting transactions, ordering them, and then submitting them as a single consolidated batch to the base layer. Proper sequencing prevents malicious reordering.
Context ∞ Layer 2 sequencing is a central point of discussion in news about blockchain scalability and the efficiency of rollups. Debates often focus on the degree of decentralization in sequencing, as a centralized sequencer could potentially introduce censorship or front-running risks. Future developments include the implementation of decentralized sequencer networks and shared sequencing solutions to further enhance fairness and robustness across multiple Layer 2 protocols.