Txn chaining
#Cardano has a EUTXO model that helps parallelize txns
This can lead to txn colliding for same access
Most Dapps use batchers to avoid this i.e group txn as one offline with multiple I/O. This has some issues but
There is another solution
Batcher issues:
Permissioned Execution
Batchers can collaborate to make your funds inaccessible or create censorship
MEV
Batchers order the txns which can allow them to extract MEV from users, eg batch Buy orders of x coin & sell it for higher price
DAO or SPO Batchers
If batcher dapps got sanctioned on Cardano like Tornado Cash, majority will be forced to comply
Obsifucation can help and add friction, but not an elegant solution.
So, the way batchers scale vertically, chaining does horizontally
Txn chaining
Conceptually similar to Input Endorsers, you create a batch of chained txns
You send txn 1 UTXO to mempool, the pending UTXOs can be used for next txn
This is even before it all goes on-chain, so a virtual chain of UTXOs which gets confirmed onchain later
Removing the dependency on who can touch a transaction i.e permissionless
Faster: Cardano finality takes a few mins, you can use your funds instantly with batching. Low latency
Things that are unclear or potential issues
How the throughput and fees would be affected, batching is a very efficient process and results in small size
Also, while latency is low for chaining, the finality could take longer and result in a diff form of MEV