> For the complete documentation index, see [llms.txt](https://docs.yamata.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.yamata.io/yamata-nodes/transaction-processing.md).

# Transaction Processing

The goal of Yamata's order processing system is to combine the speed of a off-chain order processing system with the transparency of a decentralized blockchain system.

By using a fast off-chain path (Submission A) for quick order execution and an on-chain path (Submission B) for secure validation, Yamata achieves both speed and transparency.

The off-chain path handles orders instantly, while the on-chain path ensures all transactions are publicly verifiable.

<figure><img src="/files/m57I9CqcCvv8D7mLnWBb" alt=""><figcaption><p>Transaction Processing Flow</p></figcaption></figure>

1. [**Order Placement**](/yamata-nodes/transaction-processing/order-submission-process.md) **-** The user clicks "Buy" or "Sell," initiating the order processing.
2. [**Order Submission**](/yamata-nodes/transaction-processing/order-submission-process.md) **-** The order is quickly sent to an off-chain system (Submission A) for immediate processing, simultaneously the order is sent to decentralized storage (Submission B), where it is instantly recorded on-chain for transparency.
3. [**Sequencer Processing (Submission A)**](/yamata-nodes/transaction-processing/order-submission-process.md) **-** The off-chain transactions are organized in the correct order and grouped into batches that are then secured with a Merkle Tree, ensuring they are tamper-proof.
4. [**Posting on the Blockchain**](/yamata-nodes/transaction-processing/order-submission-process.md) **-** Once processed, off-chain transactions are grouped into time intervals (epochs) and posted on the blockchain, while on-chain transactions are already posted directly on the Blockchain.
5. [**Validating Nodes (VNs)**](/yamata-nodes/transaction-processing/order-submission-process.md) - ensure that both off-chain and on-chain transactions are accurate, ordered correctly, and aligned.