Sequencer Mining

Definition ∞ Sequencer Mining refers to the process by which a designated entity, known as a sequencer, orders and batches transactions for a layer-2 rollup before submitting them to the main blockchain. This role involves collecting transactions, executing them, and then posting a compressed summary or proof to the layer-1 chain. While not traditional mining in the sense of Proof of Work, sequencers perform a critical function in determining transaction order and availability. They optimize throughput and reduce costs for rollup users.
Context ∞ Sequencer Mining is a key area of discussion in news related to layer-2 scaling solutions, particularly optimistic and ZK-rollups. Debates often address the centralization risks associated with single sequencers and proposals for decentralizing this role. The economic incentives and operational models for sequencers are also frequently examined. Future developments aim to introduce more robust and decentralized sequencer designs to enhance the censorship resistance and fairness of rollup transactions.