What is Canonical Transaction Ordering (CTOR)?

Canonical Transaction Ordering (CTOR) is a consensus change that was introduced in 2018, addressing the lack of a standardized protocol for organizing transactions within a block. Before the implementation of CTOR, the ordering of transactions in a block varied, leading to different approaches. The introduction of CTOR brought about specific rules for transaction ordering, establishing a consistent and systematic protocol for organizing transactions.

Key points about Canonical Transaction Ordering (CTOR) include:

CTOR sets a standard for the ordering of transactions within a block. This standardization ensures that a given set of transactions will be consistently organized in the same way, providing predictability and clarity to the blockchain's structure.

CTOR significantly improves the efficiency of block propagation in the Bitcoin Cash network. When a miner successfully solves a block, quick dissemination to other nodes is crucial for validation, especially in the competitive mining environment. CTOR's impact on block ordering streamlines this process by allowing miners to send only transaction IDs, reducing redundancy and facilitating rapid block validation.

With CTOR, nodes in the network already possess the majority of transactions in a new block. By leveraging the redundancy of transaction data, CTOR enables miners to efficiently disseminate block information, and nodes can accurately reconstruct the block using provided transaction IDs and the standardized ordering dictated by CTOR.

In summary, CTOR brings order and consistency to the arrangement of transactions within blocks. It not only improves the predictability of the blockchain's structure but also enhances the efficiency of block propagation by minimizing redundancy and facilitating rapid validation in the Bitcoin Cash network.

Learn more about CTOR and other Bitcoin Cash technical features in our broad exploration of Bitcoin Cash upgrades.