How Does the Complexity Affect the Decentralization of the Sequencer?
The high computational complexity of ZK-proof generation can initially lead to centralization of the sequencer role. The sequencer is the entity that collects and batches transactions and generates the proof.
Due to the specialized and expensive hardware required, only a few well-resourced entities may be able to perform this function, leading to a centralized point of control. Decentralizing the sequencer is a major ongoing development challenge for ZK-Rollups.
Glossar
Centralized Sequencer
Component ⎊ In certain Layer Two scaling architectures, this centralized entity is responsible for ordering and sequencing transactions before submitting a compressed batch proof back to the main chain.
Decentralizing the Sequencer
Architecture ⎊ The decentralization of sequencers, particularly within cryptocurrency derivatives markets, represents a fundamental shift from centralized order book models.
Sequencer
Function ⎊ A sequencer performs the critical function of ordering transactions on a Layer 2 network before submitting them to the Layer 1 blockchain for final settlement.
Computational Complexity
Analysis ⎊ Computational Complexity refers to the resources, typically time and memory, required by the network's nodes to process and validate transactions or execute smart contract functions relative to the size of the input data or the complexity of the algorithm itself.