Unbreakable Transaction Chaining

Unbreakable transaction chaining allows Leviathan to process transactions in a series where the output of one transaction becomes the input of the next, all within the same block, thus creating a chain of transactions that are interdependent and secure.

​​Transaction chaining on Cardano allows for a "first-come-first-served" ordering of transactions. This method does not require transactions to be batched and ordered off-chain, thus enhancing decentralization and reducing opportunities for manipulative practices like batcher extractable value (BEV).

In transaction chaining, each transaction in a chain depends on the unique, unchanged state of a previous transaction's UTXO (unspent transaction output). This creates a clear and immutable chain of dependencies, ensuring that transactions are executed in order and only if the required UTXOs are unchanged and present. If a transaction can't be executed due to a change in the UTXO state, it simply isn't minted, preventing loss of funds.

This system not only increases throughput by reducing the need for transactions to wait for inclusion in a block but also allows more transactions to be processed with lower latency. Transaction chaining has been adopted in various applications, such as Liquidity Bonds by Optim Finance, where it enables pooled funds to be efficiently managed and sequenced.

Implementation

• Chain Integrity: Ensures each transaction in the chain is valid before processing the next, maintaining the integrity of the entire transaction chain.

• Continuous Processing: Transactions are processed in real-time, without the need for block confirmations, enhancing throughput and efficiency.

Benefits

• Security and Integrity: Maintains a high level of security and integrity throughout the transaction process, ensuring that each transaction is only as secure as the entire chain.

• Throughput Enhancement: Significantly increases the system's throughput by eliminating the bottleneck of block confirmations.