Shared sequencing thesis: Sei and Fantom pivot away from monolithic L1s
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Argues Sei and Fantom (post-Sonic) are quietly becoming shared sequencers for rollups. Explains why centralized sequencers are risky and how shared sequencing gives censorship resistance, MEV mitigation and atomic composability across rollups.
Key claims
Leading shared sequencing layers will compete with alt-L1 and Celestia valuations
Shared sequencing enables atomic composability across rollups
Espresso includes a built-in DA layer
Interesting how both @SeiNetwork and @FantomFDN (post-Sonic) are pivoting to taking the primary role of a shared sequencer for an ecosystem of scalable execution layers (a.k.a. rollups), silently moving away from the monolithic approach. 👀
🤔 What does this tell us?
The modular expansion is real and the shared sequencer narrative will be huge. The leading shared sequencing layers will compete with the valuations of alt-L1s and other modular infrastructure giants like @CelestiaOrg.
🤔 Why is shared sequencing so big?
Sequencers are basically block builders that order transactions for rollups. However, today rollups run on centralized sequencers which is not only highly suboptimal from a risk (centralization, censorship, liveness, MEV) perspective but also isolates ecosystems from each other.
Shared sequencing done on a crypto-economically secured, high-throughput & fast finality layer improves the security & liveness guarantees, avoids censorship, and can address MEV exploitation (depending on design) while maintaining a seamless UX. Most importantly though, it enables atomic composability across rollups (especially if coupled with execution guarantees).
Think unified liquidity and seamless cross-chain interoperability across an entire ecosystem of highly optimized execution layers that are customized at every level of the tech stack, run diverse virtual machines and share the sequencer.
This is going to be huge and many shared sequencing layers will have built-in DA solutions as well (e.g. @EspressoSys), further strengthening their position within the modular tech stack.
You are not ready, anon. 🚀✨