In the current blockchain ecosystem, Rollup technology has gradually become an important solution to solve scalability problems. In this system, the sequencer is its core component. The sequencer is responsible for a number of key operations, including aggregating transactions, sorting transactions, executing transactions, generating pre-confirmations and sending ordered transaction data to the Data Availability Layer (DA Layer). However, most current Rollup systems use centralized sorters, which may lead to a series of problems.
Basic functions of the sorter
The main responsibilities of the sequencer include: Aggregating transactions: receiving transactions from users and putting them into the transaction pool (mempool).
Sort transactions: Select and sequence transactions from the transaction pool according to specific policies.
Execute transactions: Execute transactions according to the underlying virtual machine (VM).
Generate pre-confirmations: Since the finality of Rollup transactions comes from the underlying Layer 1, the sequencer usually generates pre-confirmations for the user's transactions, which allows clients and applications to continue operations while waiting for final confirmation from Layer 1.
Send ordered transaction data to the DA layer: The last step is to submit the ordered transaction data to the DA layer, such as the underlying Layer 1. Once a transaction is posted on Layer 1, it has Layer 1 level finality.
These features make the sequencer the heart of Rollup.
Risks of centralized sorters: Imagine if a Rollup has only one sorter, what happens when this sorter becomes unavailable? Apparently, the entire network will stop processing transactions. This is not a hypothetical problem, it has actually happened many times that Rollup stopped processing transactions when the sequencer failed.
Even if some argue that the network can still function even if the sequencer fails, because users can send Layer 2 transactions directly to Layer 1, such transactions can take up to 24 hours to be considered final and create conflicts with the underlying Layer 1 For the same cost, this will lead to a deterioration in user experience. For time-sensitive transactions, such as liquidating debt positions, a 24-hour delay is obviously not ideal.
More generally, a centralized sorter might:
Become a bottleneck, or in the worst case be completely unusable.
Conduct frontruns or more broadly create bad MEV (minimize variability), thereby adversely affecting users.
Therefore, the need for a decentralized sorter becomes particularly urgent. However, currently all current Rollup systems do not enable decentralized sorting.
SQUAD implements decentralized sorting
AltLayer is designed to allow application developers to request a Rollup through the Rollup launcher and specify the desired number of sorters. This way, application developers don’t need to worry about finding and launching the sorter or hosting any components of Rollup themselves, making the entire process of setting up Rollup with a decentralized sorter simple and seamless.
All this is achieved by using SQUAD. SQUAD allows nodes run by EigenLayer AVS operators to register their interest in becoming a Rollup sequencer. When an end user requests a Rollup through our RaaS platform, the user can specify the minimum and maximum number of sequencers. This design not only simplifies the process, but also improves the flexibility and security of the system.
Advantages of decentralized sorters
Decentralized sorters bring multiple advantages: Improved system stability: The existence of multiple sorters means that even if a certain sorter fails, the entire system can still run, thus avoiding interruptions in transaction processing.
Enhanced user experience: Users’ transactions no longer rely on a single sequencer, thereby reducing delays and improving the immediacy of transactions.
Reduce MEV risk: A decentralized sorter can reduce the possibility of front-loaded transactions, thus protecting users’ interests.
in conclusion
In the current blockchain ecosystem, decentralized sorters are the key to improving Rollup system performance and user experience. Through SQUAD, AltLayer provides developers with a simple and effective solution, making decentralized sorters possible. With the advancement of technology and the development of the ecosystem, decentralized sorters will become the standard configuration of Rollup in the future, bringing users a safer and more efficient trading environment.