Sequencer centralization risk pertains to the potential for a single entity or a small group of entities to control the transaction ordering and batching process in certain blockchain scaling solutions, particularly optimistic rollups. If sequencers become centralized, they could censor transactions, front-run users, or manipulate transaction inclusion order. This introduces a point of control that contradicts the decentralized ethos of blockchain technology. It poses a significant threat to censorship resistance and fairness.
Context
The discussion around sequencer centralization is a prominent concern within the layer-2 scaling landscape, especially as rollups gain wider adoption. Projects are actively researching and implementing decentralized sequencer networks to mitigate this risk. Future developments involve exploring various cryptographic techniques and economic incentives to ensure a robust and distributed sequencer layer, preserving network integrity.
A new sortition protocol leverages verifiable randomness to select transactions fairly, eliminating the centralized sequencer's ability to extract MEV.
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