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Sequencer

The operator that orders transactions on a layer 2; usually a single entity, which is most L2s' biggest live trust assumption.

The sequencer decides what order transactions execute in and gives users fast soft confirmations before anything reaches the base chain. Almost every major layer-2 runs one centralised sequencer today.

That creates real exposure: it can censor or reorder transactions, it captures mev from ordering, and if it goes offline the chain stops accepting new activity. Well-designed L2s provide a forced-inclusion escape hatch through the L1, though it is slow.

Example: a sequencer outage of two hours during a sharp drop means positions on that L2 cannot be adjusted or liquidated normally. If you run leverage on an L2, know the escape-hatch delay before you need it.

Related: layer-2, rollup

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