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Layer-2 network to launch a decentralized sequencer pool

Layer-2 network to launch a decentralized sequencer pool.

This Ethereum layer-2 platform pioneered a novel approach to a critical component of blockchain transactions, effectively mitigating vulnerabilities associated with centralized structures.

The Ethereum blockchain introduced smart contracts to automate certain events on the network, laying the foundation of decentralized finance (DeFi).

As the DeFi ecosystem continues its exponential growth, however, the limitations of Ethereum have become clear.

What is a sequencer and what does it do?

In traditional Layer 1 blockchain, transactions are packaged and processed by miners in proof-of-work systems or validators nodes in proof-of-stake systems.

These entities earn the authority to package, sequence, and produce blocks either through the competitive task of computational mining or via staking-based elections.

However, many current Layer 2 designs employ a single role, unburdened by competition or staking costs, responsible for packaging and sequencing all Layer 2 transactions.

This entity is known as the “sequencer”. Its duties extend beyond sequencing; it is also tasked with generating L2 blocks, periodically committing Layer 2 transactions and state changes to Layer 1, and addressing any potential challenges to its submissions.

Centralized sequencers present a challenge due to their sole dominion over the sequencing and packaging of Layer 2 transactions.

This monopoly raises concerns, largely stemming from this centralized control.

Decentralized Sequencers

Decentralized sequencers present a multitude of compelling advantages derived from their groundbreaking method of transaction management. Through the cultivation of trust and transparency, these sequencers establish an unalterable, openly accessible ledger that empowers autonomous validation of transaction accuracy and sequence, obviating the necessity for centralized supervision. Their infallible resistance to tampering assures the integrity of data, virtually eliminating the potential for fraud and imbuing the recorded information with authenticity. Furthermore, decentralized sequencers champion the ethos of censorship resistance and monopoly-mitigation, enabling transaction progression based on network consensus rather than central authority, nurturing an ecosystem of openness and inclusivity.

Centralized sequencers

Centralized transaction sequencers serve as mechanisms employed by blockchains or applications to ensure the orderly and secure progression of transactions. In contrast to the concept of decentralized sequencing employed in blockchains, which hinges on consensus algorithms and distributed networks, today’s sequencers function in a centralized environment under the supervision of a singular authority

Decentralizing the network controller

Metis is a Layer-2 solution that offers a suite of additional products related to NFTs, DAOs, and middleware atop its Andromeda network.

Metis, a layer-2 Ethereum scaling solution, has introduced a decentralized sequencer pool to increase the transaction speed and throughput of blockchain while maintaining Ethereum’s decentralization and security. Going beyond the single-sequencer model used by Arbitrum, Optimism, and other L2 projects, Metis is rolling out a distributed pool of sequencers — a fresh concept with built-in risk management that keeps the network up even if one of the many sequencers in the pool goes down for any reason.

Layer-2 network to launch a decentralized sequencer pool
The architecture of Metis’ decentralized sequencer pool. Source: Metis

As the blockchain ecosystem grows with new projects, keeping the main pillars of decentralization intact is crucial. With its innovative approach to how blockchain operates, Metis’ decentralized sequencer pool addresses the SPOF vulnerability while keeping its mission of rewarding the blockchain community in focus.

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