Is it possible to create chained transactions?

Does Cardano node supports processing of chained transactions?
E.g. we have an output [O1], and want to create a transaction [TX1] using [O1] as an input and creating new output [O2] and then, until [TX1] is confirmed in the network create [TX2] using [O2] as an input and creating new output [O3].

  1. Is Cardano node capable of handling this chain [TX1, TX2] properly? It has to lookup [O2] in mempool in order to verify TX2 is valid.
  2. Is it possible at all that [TX1, TX2] get into one block? Does the current block validation protocol allows that at all?

+1, I’m also interested in this feature

Hi!
if you wont get answer maybe also worth to submit this question on https://cardano.stackexchange.com/

Yes, it’s possible. You can know the transaction id before you submit it. You also know the transaction indexes as it’s just the order you supplied them. I did a testnet run of this recently and was able to fully-saturate the mempool with chained transactions. You don’t see any drops because I’m adding to it immediately so it’s re-filled.
Screenshot from 2021-06-08 15-37-35

As to whether they make it into the same block, that’s not deterministic, but they do seem to stay in the proper order.

That’s great, thanks! BTW, what do you mean exactly by “non-deterministic”? I guess in UTXO confirmed transactions stay deterministic anyway in terms of order, inputs, outputs.

Also, do you submit transaction via PAB?