What Is a Transaction Sequencer and How Does It Attempt to Solve the Ordering Problem?
A transaction sequencer is a centralized or decentralized entity in Layer 2 (L2) scaling solutions responsible for collecting, ordering, and batching L2 transactions before submitting them to the Layer 1 (L1) blockchain. Sequencers attempt to solve the ordering problem by enforcing a strict First-Come, First-Served (FCFS) order or a fair-sequencing mechanism.
This prevents external actors from reordering transactions via gas fee bidding, mitigating front-running within the L2 environment.