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Sequencer Rules

Definition

Sequencer rules are the predefined protocols that govern the ordering and processing of transactions within a blockchain layer-2 scaling solution. These rules determine how a centralized or decentralized sequencer collects, batches, and submits transactions to the underlying layer-1 blockchain, impacting transaction finality, censorship resistance, and fee structures. The design of sequencer rules is critical for optimizing throughput and reducing costs while maintaining security and fairness for users. They are a key component in the operational architecture of rollups and other off-chain processing systems.