Abstract

In the Ethereum blockchain network, high transaction fees due to limited block space and high demand necessitate scalable solutions. Layer 2 (L2) scaling solutions, particularly rollups, offer a promising approach by processing transactions off-chain and posting compressed data to the main chain (Layer 1). However, current L2 rollups rely heavily on centralized sequencer nodes, which introduces centralization risks and single points of failure. Thus, to address these concerns, this paper explores the existing issues associated with centralized sequencers exemplified by real-life incidents. Consequently, reviews the existing decentralized sequencer models by describing their operations. In addition, this study proposes a novel approach of decentralizing sequencers leveraging the Delegated Proof of Stake (DPoS) consensus mechanism depicting its’ components and step by step procedures. Finally, providing comparison among the novel approach and the existing decentralized sequencer frameworks along with their limitations.

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