Sequencer Processing
Once the order has been submitted, it moves to the sequencer stage. The sequencer's main job is to organize and arrange all the centralized transactions in a specific order, making sure everything is processed fairly and consistently.
Off-Chain Order Processing:
The sequencer collects all the submitted orders and arranges them in a specific order before grouping them into batches (Merkle Trees). You can think of this process as sorting mail into neat piles before sending it out. This organized batch is then ready to be secured and posted on-chain.
Securing Transactions (Merkle Trees)
After the transactions are organized, they are grouped into a Merkle Tree, which is a method used to securely bundle and verify the data.
Imagine a Merkle Tree as a way to create a unique “summary” of all the transactions in a batch. Here's how it works: each transaction gets a label (into a “hash”), and then those labels are combined to form branches, eventually leading to a single label at the top called the Merkle Root.
The Merkle Root is like a fingerprint for the entire group of transactions. If someone tries to change even one transaction, the Merkle Root would change, making it clear that something was altered. This provides strong security and ensures that all the transactions remain tamper-proof.
Decentralized Orders:
In the decentralized method, the order does not need to go through the sequencer. Instead, it is already posted directly on the blockchain. This means that the decentralized version of the order is visible and transparent on-chain without needing the extra step of sequencing.
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