A sequencing policy defines the rules and procedures by which transactions or operations are ordered and processed within a blockchain network or a Layer-2 solution. This policy determines the sequence in which data is added to blocks, impacting transaction finality, censorship resistance, and front-running prevention. It is a critical component of a network’s operational integrity and fairness. The policy helps ensure predictable and consistent processing of network activities.
Context
Sequencing policy is a key area of discussion in crypto news, particularly concerning transaction ordering attacks like Maximal Extractable Value and the fairness of decentralized exchanges. Optimizing these policies is a central challenge for improving network efficiency and user experience. Future developments often explore advanced cryptographic techniques and economic incentives to create more equitable and robust sequencing mechanisms. The effectiveness of a sequencing policy directly influences the overall health and decentralization of a blockchain.
A new decentralized arranger primitive leverages Set Byzantine Consensus to unify L2 sequencing and data availability, eliminating centralized trust bottlenecks.
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