Decentralized Arrangers Secure Layer Two Rollups with Set Consensus → Research

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Briefing

The fundamental problem of centralized Layer 2 rollups, where a single sequencer controls transaction ordering and availability, is addressed by proposing the Decentralized Arranger service. This new mechanism integrates sequencing and data availability into a single, fault-tolerant protocol based on an extension of Set Byzantine Consensus (SBC). SBC allows participants to reach consensus on a set of proposed transaction batches, ensuring that the sequencer function is distributed and accountable. This foundational shift provides a path toward fully decentralized rollup architectures, eliminating the single point of failure and mitigating adversarial MEV extraction risks inherent in current designs.

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Context

Before this research, Layer 2 rollups → designed to solve Layer 1 scalability limitations → inherently traded decentralization for efficiency by relying on a single, centralized sequencer. This established architecture created a new point of centralization, allowing the operator to censor transactions, extract MEV, and potentially halt the network, thereby compromising the core trust assumptions of the entire rollup system. The academic challenge centered on designing a robust, performant, and cryptoeconomically secure distributed consensus mechanism specifically for the high-throughput sequencing function.

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Analysis

The core mechanism is the Decentralized Arranger , a unified service that handles both transaction batching/hashing and data availability via a Data Availability Committee (DAC). This service is secured by Set Byzantine Consensus (SBC) , a BFT variant. SBC differs from traditional BFT by achieving consensus not on a single proposed value, such as a block, but on a subset of the union of values proposed by all participants.

This allows multiple sequencers to propose transaction sets simultaneously, with the protocol formally selecting a final, agreed-upon set. The mechanism is further secured by Layer 1-arbitrated fraud proofs, which penalize dishonest arrangers, creating an accountable and economically secure system.

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Parameters

New Primitive → Decentralized Arranger → A service that unifies the sequencer and Data Availability Committee (DAC) roles.
Consensus Basis → Set Byzantine Consensus (SBC) → A BFT extension that reaches agreement on a set of proposed values rather than a single value.
Security Mechanism → L1-Arbitrated Fraud Proofs → Used to detect and penalize dishonest behavior by Arranger participants, enforced by the Layer 1 smart contract.
Centralization Risk Addressed → Single Sequencer Failure → Mitigating censorship and MEV extraction by distributing the sequencing role across a BFT committee.

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Outlook

The introduction of the Decentralized Arranger and the formalization of Set Byzantine Consensus for sequencing opens a critical new avenue for L2 research. Future work will focus on optimizing the latency and throughput of the SBC protocol to match centralized sequencer performance, and exploring its application to other decentralized services like shared sequencing across multiple rollups. Within three to five years, this foundational work could lead to the deployment of truly trustless, interoperable Layer 2 ecosystems where the sequencer is a decentralized public good, dramatically increasing the security and neutrality of the entire rollup landscape.

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Verdict

This research provides the foundational, cryptoeconomically-enforced mechanism necessary to transition Layer 2 rollups from a centralized scaling solution to a fully decentralized architectural primitive.

Decentralized sequencing, rollup centralization risk, Set Byzantine Consensus, data availability committee, L2 scaling solution, arranger protocol, fraud proof mechanism, offchain computation, transaction serialization, layer one commitment, Byzantine fault tolerance, rollup trustlessness, mechanism design, onchain arbitration Signal Acquired from → arxiv.org