Remove length prefix from SliceEncoder

diff --git a/consensus_encoding/examples/encoder.rs b/consensus_encoding/examples/encoder.rs
index d861b0ec..19ada677 100644
--- a/consensus_encoding/examples/encoder.rs
+++ b/consensus_encoding/examples/encoder.rs
@@ -3,7 +3,7 @@
 //! Example of creating an encoder that encodes a slice of encodable objects.
 
 use consensus_encoding as encoding;
-use encoding::{ArrayEncoder, BytesEncoder, Encodable, Encoder2, SliceEncoder};
+use encoding::{ArrayEncoder, BytesEncoder, CompactSizeEncoder, Encodable, Encoder2, SliceEncoder};
 
 fn main() {
     let v = vec![Inner::new(0xcafe_babe), Inner::new(0xdead_beef)];
@@ -29,7 +29,7 @@ impl Adt {
 
 encoding::encoder_newtype! {
     /// The encoder for the [`Adt`] type.
-    pub struct AdtEncoder<'e>(Encoder2<SliceEncoder<'e, Inner>, BytesEncoder<'e>>);
+    pub struct AdtEncoder<'e>(Encoder2<Encoder2<CompactSizeEncoder, SliceEncoder<'e, Inner>>, BytesEncoder<'e>>);
 }
 
 impl Encodable for Adt {
@@ -39,7 +39,10 @@ impl Encodable for Adt {
         Self: 'a;
 
     fn encoder(&self) -> Self::Encoder<'_> {
-        let a = SliceEncoder::with_length_prefix(&self.v);
+        let a = Encoder2::new(
+            CompactSizeEncoder::new(self.v.len()),
+            SliceEncoder::without_length_prefix(&self.v),
+        );
         let b = BytesEncoder::without_length_prefix(self.b.as_ref());
 
         AdtEncoder(Encoder2::new(a, b))
diff --git a/consensus_encoding/src/encode/encoders.rs b/consensus_encoding/src/encode/encoders.rs
index cf455036..0c346505 100644
--- a/consensus_encoding/src/encode/encoders.rs
+++ b/consensus_encoding/src/encode/encoders.rs
@@ -65,43 +65,32 @@ impl<const N: usize> Encoder for ArrayEncoder<N> {
 pub struct SliceEncoder<'e, T: Encodable> {
     /// The list of references to the objects we are encoding.
     sl: &'e [T],
-    /// The length prefix.
-    compact_size: Option<ArrayVec<u8, SIZE>>,
     /// Encoder for the current object being encoded.
     cur_enc: Option<T::Encoder<'e>>,
 }
 
 impl<'e, T: Encodable> SliceEncoder<'e, T> {
-    /// Constructs an encoder which encodes the slice with a length prefix.
-    pub fn with_length_prefix(sl: &'e [T]) -> Self {
-        let len = sl.len();
-        let compact_size = Some(compact_size::encode(len));
-
+    /// Constructs an encoder which encodes the slice _without_ adding the length prefix.
+    ///
+    /// To encode with a length prefix consider using the `Encoder2`.
+    ///
+    /// E.g, `Encoder2<CompactSizeEncoder, SliceEncoder<'e, Foo>>`.
+    pub fn without_length_prefix(sl: &'e [T]) -> Self {
         // In this `map` call we cannot remove the closure. Seems to be a bug in the compiler.
         // Perhaps https://github.com/rust-lang/rust/issues/102540 which is 3 years old with
         // no replies or even an acknowledgement. We will not bother filing our own issue.
-        Self { sl, compact_size, cur_enc: sl.first().map(|x| T::encoder(x)) }
+        Self { sl, cur_enc: sl.first().map(|x| T::encoder(x)) }
     }
 }
 
 impl<T: Encodable> Encoder for SliceEncoder<'_, T> {
     fn current_chunk(&self) -> Option<&[u8]> {
-        if let Some(compact_size) = self.compact_size.as_ref() {
-            return Some(compact_size);
-        }
-
         // `advance` sets `cur_enc` to `None` once the slice encoder is completely exhausted.
         // `current_chunk` is required to return `None` if called after the encoder is exhausted.
         self.cur_enc.as_ref().and_then(T::Encoder::current_chunk)
     }
 
     fn advance(&mut self) -> bool {
-        // Handle compact_size first, regardless of whether we have elements.
-        if self.compact_size.is_some() {
-            self.compact_size = None;
-            return self.cur_enc.is_some();
-        }
-
         let Some(cur) = self.cur_enc.as_mut() else {
             return false;
         };
@@ -329,12 +318,10 @@ mod tests {
 
     #[test]
     fn encode_slice_with_elements() {
-        // Should have length prefix chunk, then element chunks, then exhausted.
+        // Should have the element chunks, then exhausted.
         let slice = &[TestArray([0x34, 0x12, 0x00, 0x00]), TestArray([0x78, 0x56, 0x00, 0x00])];
-        let mut encoder = SliceEncoder::with_length_prefix(slice);
+        let mut encoder = SliceEncoder::without_length_prefix(slice);
 
-        assert_eq!(encoder.current_chunk(), Some(&[2u8][..]));
-        assert!(encoder.advance());
         assert_eq!(encoder.current_chunk(), Some(&[0x34, 0x12, 0x00, 0x00][..]));
         assert!(encoder.advance());
         assert_eq!(encoder.current_chunk(), Some(&[0x78, 0x56, 0x00, 0x00][..]));
@@ -344,23 +331,20 @@ mod tests {
 
     #[test]
     fn encode_empty_slice() {
-        // Should have only length prefix chunk (0), then exhausted.
+        // Should immediately be exhausted.
         let slice: &[TestArray<4>] = &[];
-        let mut encoder = SliceEncoder::with_length_prefix(slice);
+        let mut encoder = SliceEncoder::without_length_prefix(slice);
 
-        assert_eq!(encoder.current_chunk(), Some(&[0u8][..]));
         assert!(!encoder.advance());
         assert_eq!(encoder.current_chunk(), None);
     }
 
     #[test]
     fn encode_slice_with_zero_sized_arrays() {
-        // Should have length prefix chunk, then empty array chunks, then exhausted.
+        // Should have empty array chunks, then exhausted.
         let slice = &[TestArray([]), TestArray([])];
-        let mut encoder = SliceEncoder::with_length_prefix(slice);
+        let mut encoder = SliceEncoder::without_length_prefix(slice);
 
-        assert_eq!(encoder.current_chunk(), Some(&[2u8][..]));
-        assert!(encoder.advance());
         assert_eq!(encoder.current_chunk(), Some(&[][..]));
         assert!(encoder.advance());
         assert_eq!(encoder.current_chunk(), Some(&[][..]));
@@ -492,14 +476,12 @@ mod tests {
 
     #[test]
     fn encode_slice_with_array_composition() {
-        // Should encode slice with prefix and elements, then array, then exhausted.
+        // Should encode slice elements, then array, then exhausted.
         let slice = &[TestArray([0x10, 0x11]), TestArray([0x12, 0x13])];
-        let slice_enc = SliceEncoder::with_length_prefix(slice);
+        let slice_enc = SliceEncoder::without_length_prefix(slice);
         let array_enc = TestArray([0x20, 0x21]).encoder();
         let mut encoder = Encoder2::new(slice_enc, array_enc);
 
-        assert_eq!(encoder.current_chunk(), Some(&[2u8][..]));
-        assert!(encoder.advance());
         assert_eq!(encoder.current_chunk(), Some(&[0x10, 0x11][..]));
         assert!(encoder.advance());
         assert_eq!(encoder.current_chunk(), Some(&[0x12, 0x13][..]));
@@ -511,16 +493,14 @@ mod tests {
 
     #[test]
     fn encode_array_with_slice_composition() {
-        // Should encode header array, then slice with prefix and elements, then exhausted.
+        // Should encode header array, then slice elements, then exhausted.
         let header = TestArray([0xFF, 0xFE]).encoder();
         let slice = &[TestArray([0x01]), TestArray([0x02]), TestArray([0x03])];
-        let slice_enc = SliceEncoder::with_length_prefix(slice);
+        let slice_enc = SliceEncoder::without_length_prefix(slice);
         let mut encoder = Encoder2::new(header, slice_enc);
 
         assert_eq!(encoder.current_chunk(), Some(&[0xFF, 0xFE][..]));
         assert!(encoder.advance());
-        assert_eq!(encoder.current_chunk(), Some(&[3u8][..]));
-        assert!(encoder.advance());
         assert_eq!(encoder.current_chunk(), Some(&[0x01][..]));
         assert!(encoder.advance());
         assert_eq!(encoder.current_chunk(), Some(&[0x02][..]));
@@ -532,25 +512,23 @@ mod tests {
 
     #[test]
     fn encode_multiple_slices_composition() {
-        // Should encode three slices in sequence with prefixes and elements, then exhausted.
+        // Should encode three slices in sequence, then exhausted.
         let slice1 = &[TestArray([0xA1]), TestArray([0xA2])];
         let slice2: &[TestArray<1>] = &[];
         let slice3 = &[TestArray([0xC1]), TestArray([0xC2]), TestArray([0xC3])];
 
-        let enc1 = SliceEncoder::with_length_prefix(slice1);
-        let enc2 = SliceEncoder::with_length_prefix(slice2);
-        let enc3 = SliceEncoder::with_length_prefix(slice3);
+        let enc1 = SliceEncoder::without_length_prefix(slice1);
+        let enc2 = SliceEncoder::without_length_prefix(slice2);
+        let enc3 = SliceEncoder::without_length_prefix(slice3);
         let mut encoder = Encoder3::new(enc1, enc2, enc3);
 
-        assert_eq!(encoder.current_chunk(), Some(&[2u8][..]));
-        assert!(encoder.advance());
         assert_eq!(encoder.current_chunk(), Some(&[0xA1][..]));
         assert!(encoder.advance());
         assert_eq!(encoder.current_chunk(), Some(&[0xA2][..]));
+
+        // Skip the empty slice
         assert!(encoder.advance());
-        assert_eq!(encoder.current_chunk(), Some(&[0u8][..]));
-        assert!(encoder.advance());
-        assert_eq!(encoder.current_chunk(), Some(&[3u8][..]));
+
         assert!(encoder.advance());
         assert_eq!(encoder.current_chunk(), Some(&[0xC1][..]));
         assert!(encoder.advance());
@@ -566,14 +544,12 @@ mod tests {
         // Should encode header, slice with elements, and footer with prefix, then exhausted.
         let header = TestBytes(&[0xDE, 0xAD]).encoder();
         let data_slice = &[TestArray([0x01, 0x02]), TestArray([0x03, 0x04])];
-        let slice_enc = SliceEncoder::with_length_prefix(data_slice);
+        let slice_enc = SliceEncoder::without_length_prefix(data_slice);
         let footer = TestBytes(&[0xBE, 0xEF]).encoder();
         let mut encoder = Encoder3::new(header, slice_enc, footer);
 
         assert_eq!(encoder.current_chunk(), Some(&[0xDE, 0xAD][..]));
         assert!(encoder.advance());
-        assert_eq!(encoder.current_chunk(), Some(&[2u8][..]));
-        assert!(encoder.advance());
         assert_eq!(encoder.current_chunk(), Some(&[0x01, 0x02][..]));
         assert!(encoder.advance());
         assert_eq!(encoder.current_chunk(), Some(&[0x03, 0x04][..]));
diff --git a/consensus_encoding/tests/wrappers.rs b/consensus_encoding/tests/wrappers.rs
index 585dcd6a..70439ee3 100644
--- a/consensus_encoding/tests/wrappers.rs
+++ b/consensus_encoding/tests/wrappers.rs
@@ -3,7 +3,7 @@
 #![cfg(feature = "std")]
 
 use consensus_encoding as encoding;
-use encoding::{ArrayEncoder, BytesEncoder, Encodable, Encoder2, SliceEncoder};
+use encoding::{ArrayEncoder, BytesEncoder, CompactSizeEncoder, Encodable, Encoder2, SliceEncoder};
 
 encoding::encoder_newtype! {
     /// An encoder that uses an inner `ArrayEncoder`.
@@ -93,7 +93,7 @@ fn slice_encoder() {
 
     encoding::encoder_newtype! {
         /// An encoder that uses an inner `SliceEncoder`.
-        pub struct TestEncoder<'e>(SliceEncoder<'e, Inner>);
+        pub struct TestEncoder<'e>(Encoder2<CompactSizeEncoder, SliceEncoder<'e, Inner>>);
     }
 
     impl Encodable for Test {
@@ -103,7 +103,10 @@ fn slice_encoder() {
             Self: 'a;
 
         fn encoder(&self) -> Self::Encoder<'_> {
-            TestEncoder(SliceEncoder::with_length_prefix(&self.0))
+            TestEncoder(Encoder2::new(
+                CompactSizeEncoder::new(self.0.len()),
+                SliceEncoder::without_length_prefix(&self.0),
+            ))
         }
     }
 
diff --git a/primitives/src/block.rs b/primitives/src/block.rs
index 080d20c1..ab87c613 100644
--- a/primitives/src/block.rs
+++ b/primitives/src/block.rs
@@ -13,7 +13,7 @@ use core::marker::PhantomData;
 
 #[cfg(feature = "arbitrary")]
 use arbitrary::{Arbitrary, Unstructured};
-use encoding::{Encodable, Encoder2, SliceEncoder};
+use encoding::{CompactSizeEncoder, Encodable, Encoder2, SliceEncoder};
 use hashes::{sha256d, HashEngine as _};
 
 #[cfg(feature = "alloc")]
@@ -169,19 +169,25 @@ mod sealed {
 encoding::encoder_newtype! {
     /// The encoder for the [`Block`] type.
     pub struct BlockEncoder<'e>(
-        Encoder2<HeaderEncoder, SliceEncoder<'e, Transaction>>
+        Encoder2<HeaderEncoder, Encoder2<CompactSizeEncoder, SliceEncoder<'e, Transaction>>>
     );
 }
 
 #[cfg(feature = "alloc")]
 impl Encodable for Block {
     type Encoder<'e>
-        = Encoder2<HeaderEncoder, SliceEncoder<'e, Transaction>>
+        = Encoder2<HeaderEncoder, Encoder2<CompactSizeEncoder, SliceEncoder<'e, Transaction>>>
     where
         Self: 'e;
 
     fn encoder(&self) -> Self::Encoder<'_> {
-        Encoder2::new(self.header.encoder(), SliceEncoder::with_length_prefix(&self.transactions))
+        Encoder2::new(
+            self.header.encoder(),
+            Encoder2::new(
+                CompactSizeEncoder::new(self.transactions.len()),
+                SliceEncoder::without_length_prefix(&self.transactions),
+            ),
+        )
     }
 }
 
diff --git a/primitives/src/transaction.rs b/primitives/src/transaction.rs
index 1a1882a0..b3a049fb 100644
--- a/primitives/src/transaction.rs
+++ b/primitives/src/transaction.rs
@@ -21,7 +21,7 @@ use core::fmt;
 use arbitrary::{Arbitrary, Unstructured};
 use encoding::{ArrayEncoder, BytesEncoder, Encodable, Encoder2};
 #[cfg(feature = "alloc")]
-use encoding::{Encoder, Encoder3, Encoder6, SliceEncoder};
+use encoding::{CompactSizeEncoder, Encoder, Encoder3, Encoder6, SliceEncoder};
 #[cfg(feature = "alloc")]
 use hashes::sha256d;
 #[cfg(feature = "alloc")]
@@ -311,8 +311,8 @@ encoding::encoder_newtype! {
         Encoder6<
             VersionEncoder,
         Option<ArrayEncoder<2>>,
-        SliceEncoder<'e, TxIn>,
-        SliceEncoder<'e, TxOut>,
+        Encoder2<CompactSizeEncoder, SliceEncoder<'e, TxIn>>,
+        Encoder2<CompactSizeEncoder, SliceEncoder<'e, TxOut>>,
         Option<WitnessesEncoder<'e>>,
         LockTimeEncoder,
         >
@@ -328,8 +328,14 @@ impl Encodable for Transaction {
 
     fn encoder(&self) -> Self::Encoder<'_> {
         let version = self.version.encoder();
-        let inputs = SliceEncoder::with_length_prefix(self.inputs.as_ref());
-        let outputs = SliceEncoder::with_length_prefix(self.outputs.as_ref());
+        let inputs = Encoder2::new(
+            CompactSizeEncoder::new(self.inputs.len() as u64),
+            SliceEncoder::without_length_prefix(self.inputs.as_ref()),
+        );
+        let outputs = Encoder2::new(
+            CompactSizeEncoder::new(self.outputs.len() as u64),
+            SliceEncoder::without_length_prefix(self.outputs.as_ref()),
+        );
         let lock_time = self.lock_time.encoder();
 
         if self.uses_segwit_serialization() {