We design a practical algorithm for transaction ordering that takes into account both transaction timestamps and bids. The algorithm guarantees that users get their transactions published with bounded delay against a bid, while it extracts a fair value from sophisticated users that have an edge in latency, by moving expenditure from investment in latency improvement technology to bidding. The algorithm creates a score from timestamps and bids, and orders transactions based on the score. We first show that a scoring rule is the only type of rule that satisfies the independence of latency races. We provide an economic analysis of the protocol in an environment of private information, where investment in latency is made ex-ante or interim stages, while bidding happens at the interim stage where private signals have been observed. The algorithm is useful for transaction sequencing in rollups or in other environments where the sequencer has privileged access to order flows.

翻译：我们设计了一种实用的交易排序算法，该算法同时考虑交易时间戳和竞价。该算法确保用户能够以与竞价相对应的有界延迟发布交易，同时通过将支出从延时提升技术的投资转向竞价，从具有延迟优势的复杂用户中提取公平价值。该算法根据时间戳和竞价生成分数，并基于该分数对交易进行排序。我们首先证明，评分规则是唯一满足延时竞赛独立性的规则类型。我们提供了该协议在私人信息环境下的经济分析，其中对延迟的投资发生在事前或中期阶段，而竞价发生在已观察到私人信号的中期阶段。该算法适用于Rollup中的交易排序，或排序器对订单流具有特权的其他环境。