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New technology might improve network’s decentralization and solve numerous issues<\/p>\n<\/div>\n<\/div>\n
Cardano’s eUTXO model is what makes the network different from such blockchains\u00a0as Ethereum<\/a>\u00a0as all transactions occur in parallel to each other, which is why there is a fair share of difficulties for\u00a0dApps, and solutions like transaction chaining<\/a> are here to solve those issues.<\/p>\n At first, decentralized Cardano applications like Minswap or SundaeSwap used the “batching”\u00a0solution, where off-chain sequencers aggregated a number of UTXOs prior to submitting them on chain and executing. While this solution\u00a0indeed solves\u00a0a series of issues tied to the eUTXO model, it brings numerous risks like centralization, custodiality and batcher executable value, which can be used for sandwich attacks on users.<\/p>\n The new solution adds another vertical where UTXOs are not batched off-chain but ordered virtually in a “first-come-first-served”\u00a0manner. The transaction chain functions\u00a0publicly and visibly in a decentralized way. The chain can be accessed by anyone without the limitation on who can consume which UTXO.<\/p>\n Ads<\/p>\n<\/div>\n<\/div>\n Additionally, transaction chaining adds another vertical that decreases latency in the processing of orders. The application assumes that orders will make it on-chain and will be reverted without any loss if something goes wrong.<\/p>\n First and foremost, the transaction submission to the mempool is done, which verifies its correctness. After this happens, users’\u00a0transactions are associated with a\u00a0particular UTXO,\u00a0which protects the users’\u00a0transaction and reverts it if something goes wrong.<\/p>\n Essentially, the new solution may solve most problems Cardano-based DEXs and other decentralized applications are facing today, which is extremely relevant while the project’s biggest competitor, Ethereum, is facing potential regulatory issues after switching to a\u00a0PoS consensus algorithm<\/a>.<\/p>\n<\/div>\nTransaction\u00a0chaining<\/h2>\n
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