In permissioned blockchain systems, Hyperledger Fabric transactions are grouped into blocks by a peer in the network (e.g. the ordering service in Fabric) and then propagated to the other peers for commitment. When a peer receives a new block, it processes the contained transactions sequentially.

Why does this processing need to be sequential? Can it also have parallel execution of transactions?

Let's assume that multiple nodes simultaneously enter transactions with their timestamp. Thus, the transaction timestamp will not be similar, although it was entered simultaneously because of sequential execution. What do you think is the impact of sequential?

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