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Did you know that most L2 scaling solutions today have a single point of failure that threatens their networks? The reason is the so-called L2 Sequencer problem. Continue reading to learn everything you need to know about it.
Layer 2 scaling solutions, particularly through the implementation of Rollups, significantly enhance Ethereum’s transaction throughput by batching multiple transactions off-chain and settling them as a single transaction on the main chain. At the core of a Rollup there’s a key piece that receives transactions and takes care of ordering them, this is the so-called sequencer.
Sequencers are server nodes that perform the task of aggregating individual transactions into batches. If the sequencer node is controlled by a single entity it can lead to a big centralization problem, because that entity would have a huge amount of power over the transactions that are sent by users. Essentially a centralized sequencer can exclude, freeze or alter the order of transactions on the network.
In addition to this, if the sequencer node goes down or is compromised, the entire network could be disrupted, stopping transaction processing and compromising the blockchain’s integrity. The solution for decentralizing the sequencer has been discussed over long periods of time, and one possible solution is the creation of a Sequencer Pool.
The Sequencer Pool is a collection of nodes that share the responsibility of ordering and processing transactions in the L2 network. They rotate and work together to agree or not upon confirmation of transactions.
Below we find the initial design of the first public proposal of a Sequencer Pool for Metis L2. Since then researchers and developers have worked together to implement this and become the first Optimistic Rollup with a decentralized Sequencer Pool.
Solving the centralization of L2 sequencers is a step toward advancing the decentralization of how we are scaling Ethereum preserving its values. The Sequencer Pool provides a step towards a more secure, fair, and decentralized future for L2 scaling solutions.
