A Look at Shared Sequencing Part 3: Applications

The idea of a shared sequencing layer can greatly enhance interoperability and amortize transaction costs, and a handful of protocols have been covered in an earlier research piece on their respective designs and tradeoffs. That said, there are only a few unique applications that can be built from shared sequencing layers.

With a shared sequencing layer, traders can now perform cross-rollup asset swaps. Consider an example where Alice delivers USDC to Bob on rollup A, while Bob delivers ETH to Alice on rollup B. Typically, the party that submits the transaction first gives the other a free option to unilaterally abort the transaction. The lack of atomicity in periods of high price volatility can result in a situation where such transactions can be exploited by others.