Shared Sequencers and Their Impact on DeFi
Decentralized finance (DeFi) has transformed how people trade, lend, borrow, and earn yield without relying on traditional financial intermediaries. However, as blockchain adoption accelerates, many decentralized applications (dApps) are spreading across multiple Layer 2 (L2) networks to achieve lower fees and higher transaction throughput. While this expansion improves scalability, it also introduces new challenges related to liquidity fragmentation, interoperability, and transaction coordination . One emerging solution is shared sequencers —a new infrastructure layer designed to coordinate transaction ordering across multiple rollups. By enabling multiple Layer 2 networks to rely on a common sequencing mechanism, shared sequencers promise faster interoperability, improved security, and a better user experience. They could become one of the most important infrastructure upgrades for the next generation of DeFi. Understanding Sequencers To appreciate shared sequencers, it’s helpfu...