Builders Guide
Sequencer Operations
Overview

GOAT Decentralized Sequencers Overview

The GOAT Network is an Layer 2 Rollup and therefore employs sequencers to batch transactions and submit them to the main chain. What is unique about GOAT is that it uses decentralized sequencers. This section will take you through what that means and how you can participate in it.

What is a Sequencer?

A sequencer is responsible for verifying, ordering, and compressing transactions on a Layer 2 (L2) rollup network before submitting them to the Bitcoin blockchain (Layer 1 or L1). Unlike traditional centralized sequencers, GOAT Network introduces a decentralized sequencer model to enhance security, censorship resistance, and liveness from day one.

High-Level Overview

Above shows an oversimplified diagram of how the decentralized sequencer processes L2 transactions:

  1. A user submits a L2 transaction to an RPC node of GOAT Network.
  2. The RPC node forwards the transaction to the BridgeService to find the current sequencer in rotation.
  3. The BridgeService reads the contract on Bitcoin to find the current sequencer in rotation.
  4. The transaction gets added to the mempool of the current sequencer in rotation.
  5. The sequencer processes the transaction using EVM and compresses it into a batch.
  6. The Sequencer's Batch Submitter submits the taproot of the batch to the Bitcoin blockchain and waits for confirmation.
  7. The Sequencer also generates a Zero-Knowledge Proof (ZKP) for the batch and submits it to the ZKM.

Verifiers can challenge the sequencer's batch submission by submitting a fraud proof. If the fraud proof is valid, the sequencer is penalized and the batch is reverted.

How and why to become a Sequencer

Anyone can become a sequencer on the GOAT Network and earn fees for processing transactions. Go to the next section to learn how to become a sequencer.

Next: Becoming a Sequencer

Sequencer Responsibilities

1. Transaction Processing

  • Receive and validate incoming transactions
  • Order transactions fairly and efficiently
  • Execute transactions in the EVM environment
  • Generate state updates

2. Batch Management

  • Aggregate transactions into optimized batches
  • Compress transaction data
  • Generate batch commitments
  • Submit batches to Bitcoin L1

3. Proof Generation

  • Create ZK proofs for transaction batches
  • Verify state transitions
  • Submit proofs to ZKM network
  • Handle proof aggregation

4. Security Maintenance

  • Monitor network health
  • Detect and report malicious activity
  • Participate in consensus
  • Maintain required stake

Sequencer Requirements

Hardware Requirements

  • High-performance CPU (8+ cores)
  • 32GB+ RAM
  • 1TB+ SSD storage
  • Reliable network connection

Software Requirements

  • Latest GOAT node software
  • Bitcoin full node
  • ZKM proof generation tools
  • Monitoring tools

Economic Requirements

  • Minimum stake requirement
  • Operating costs consideration
  • Performance bond
  • Insurance requirements

Rewards and Penalties

Rewards

  • Transaction fee shares
  • Batch submission rewards
  • Proof generation incentives
  • Network participation bonuses

Penalties

  • Stake slashing for malicious behavior
  • Performance penalties
  • Missed batch penalties
  • Challenge failure penalties

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