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What Are the Trade-Offs of Using a Centralized Sequencer for Transaction Ordering?

The main trade-offs are efficiency versus decentralization. A centralized sequencer offers fast, low-cost transaction confirmation and simplified MEV mitigation through controlled ordering.

However, it introduces a single point of failure, potential censorship risk, and a single entity capable of extracting MEV. The community must trust the sequencer to act honestly and not abuse its ordering power.

What Is a Decentralized Sequencer and How Does It Relate to MEV on Layer 2?
What Is the Risk of Centralization Associated with Using a Limited Number of Private Transaction Relays?
What Is the Role of a ‘Sequencer’ in Layer-2 Solutions That Use Transaction Batching?
What Role Do Decentralized Sequencers Play in the Batching Process on Layer 2 Networks?