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.
Context ∞ Sequencer rules are a prominent topic in news related to optimistic rollups and zero-knowledge rollups, particularly concerning their decentralization roadmap and potential for single points of failure. Debates often address the trade-offs between efficiency and censorship resistance inherent in various sequencer designs. The ongoing development aims to progressively decentralize sequencers to enhance the security and trustworthiness of layer-2 solutions.