Sequencer incentive alignment refers to the design of economic mechanisms that motivate sequencers in Layer 2 rollups to act honestly and in the best interest of the network and its users. This includes structuring rewards for processing transactions and penalties for malicious or negligent behavior, such as censorship or downtime. Proper alignment is crucial for maintaining the liveness and fairness of the rollup.
Context
Sequencer incentive alignment is a critical challenge for current Layer 2 rollups, many of which rely on centralized sequencers. The ongoing debate concerns how to decentralize sequencing and design robust incentive structures that deter malicious actions without compromising efficiency. Future developments will likely involve advanced game theory and cryptographic techniques to ensure that sequencers are consistently motivated to provide reliable and censorship-resistant service.
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