Problem Statement

Transaction chaining is a method with a purpose to address concurrency challenges inherent to Cardano’s eUTXO model by offering a decentralized alternative to the restrictive batching processes

Solution

Transaction chaining sorts UTXOs on a “first-come-first-served” basis, enabling quicker transaction processing without off-chain batching. This method ensures that transactions not confirmed on-chain are simply reversed, preventing fund loss and improving throughput.

In this process, transactions enter the mempool for validation. Each transaction is tied to a specific UTXO state; changes in this state prevent transaction execution unless the original UTXO is present. This ensures that transactions are processed in the order they are received.

Implementation in Lucid Evolution

const [newWalletInputs, derivedOutputs, tx] = await user
  .newTx()
  .pay.ToAddressWithData(
    contractAddress,
    {
      kind: "inline",
      value: datum,
    },
    { lovelace: 10_000_000n }
  )
  .chain();
 
const signed = await tx.sign.withWallet().complete();
const txHash = await signed.submit();