Core Functions of Sequencers

Transaction Ordering:

Sequencers receive transactions from users and determine the order in which these transactions will be processed and recorded. This ordering is critical because it can influence the state of the blockchain and the outcome of smart contract executions. The sequence in which transactions are processed can affect variables like account balances and the state of smart contracts.

Transaction Compression:

Sequencers aggregate multiple individual transactions into a single, more compact data structure. This compression is not just about data size reduction; it's about structuring transactions in a way that they can be processed more efficiently by the Layer 1 blockchain. This method is crucial for enhancing the scalability of the network, as it reduces the data load that the main chain has to handle, thereby optimizing the use of block space and potentially lowering transaction fees.

Initial Verification:

Before ordering and compressing transactions, sequencers perform a preliminary verification. This involves checking the validity of transactions against the current state of the Layer 2 network and ensuring they adhere to the network's protocols and rules. This step is vital for maintaining the integrity and security of the Layer 2 network, as it filters out invalid or fraudulent transactions early in the process.

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