Sequencer centralization refers to a situation where a single entity or a small group of entities controls the primary sequencing of transactions within a layer-2 scaling solution or blockchain network. Sequencers are responsible for ordering transactions before they are batched and submitted to the main chain. Centralization in this role can lead to censorship risks, potential for manipulation, and a single point of failure, undermining the decentralized ethos of blockchain technology. Efforts are underway to develop decentralized sequencing solutions to mitigate these concerns.
Context
Sequencer centralization is a significant topic of debate within the layer-2 scaling ecosystem, particularly for optimistic and zero-knowledge rollups. News coverage often scrutinizes the degree of centralization in the sequencers of prominent layer-2 networks and the potential implications for censorship resistance and network security. The development and adoption of decentralized sequencer technologies are seen as critical steps toward achieving greater trustlessness and resilience in these scaling solutions.
This research reveals that arbitrageurs on fast-finality blockchains maximize profit by splitting MEV opportunities into small, spam-based transactions, exposing critical flaws in current fee mechanisms.
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