Sequencer Network
Deep dive into TAC’s sequencer network - how it maintains secure cross-chain communication
The sequencer network is TAC’s decentralized off-chain system based on proof-of-stake that ensures reliable and secure message delivery between TON and EVM chains.
Understanding Sequencers
Sequencers are nodes that form transaction trees, with one tree for TON and another for EVM. They use Merkle trees to organize cross-chain messages, collecting log messages from TON and events from the EVM side within specific time intervals set by the network.
A sequencer takes data from smart contracts, part of the execution layer, and aggregates transactions received over time T (a global network parameter). This organized approach ensures orderly processing of all cross-chain communications.
Sequencer Groups
The network organizes sequencers into groups to enhance security and reliability. A sequencer group is a unified set of sequencer nodes owned by a specific entity - for example, each trusted dApp can have its own group.
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Within each group, sequencers independently form transaction trees and create Merkle proofs. They submit their root hashes to the SequencerGroup smart contract, where the system verifies the submitting wallet’s approval status.
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The signature counter for each proof increases as group members submit matching hashes. When signatures reach 66% of the group’s required threshold, the tree advances to the CrossChainLayer smart contract.
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At the CrossChainLayer level, groups must achieve network-wide consensus. The tree is only applied for cross-chain operations when enough groups submit identical trees, creating multiple layers of security.
Becoming a Sequencer Group
Group formation isn’t open to everyone - it requires approval through multisig or DAO voting. Organizations managing a group can determine their internal sequencers using standard wallets or multisig for enhanced security. Future implementations may include a rating system affecting group collateral and profitability.
Economic Security Model
Each group must maintain collateral above a minimum threshold determined by DAO voting. While collateral size doesn’t influence the signatures needed for tree establishment, it affects profitability. Higher collateral incentivizes better security through increased stake in the system’s success.
Groups can modify their collateral when changing proofs. If an incorrect proof is submitted, there’s time to issue penalties before collateral withdrawal. Other groups can submit penalty applications to the Penalty smart contract, with partial collateral locking if enough groups agree.
Message Validation
The sequencer network ensures transaction integrity through comprehensive validation. When processing cross-chain messages, sequencers verify that:
Asset Verification
Sequencers index and validate all transferred assets, ensuring message parameters match actual transfers. This prevents attempts to process messages with incorrect asset amounts.
Message Processing
Valid messages proceed to the target contract. The system ensures users can’t spend more assets than they’ve actually transferred, maintaining economic security.
Execution Oversight
Sequencers monitor execution results and handle any necessary rollbacks for failed transactions.
Executor Selection
Executors are sequencers chosen to process specific transactions in each execution round. Selection happens randomly but proportionally to each sequencer’s collateral - higher stake means more frequent selection and larger rewards.
Selection Process
The system generates a random number using the Merkle root as a seed. This number, combined with sequencer stakes, determines the executor through a deterministic formula.
Execution Rights
While any account can technically execute transactions by providing correct proofs, rewards distribute based on stake regardless of who performs the execution.
Reward Distribution
At round end, rewards distribute proportionally to sequencer stakes, incentivizing higher collateral commitment.