While promising, the blockchain industry has struggled with various issues. Top among them has been scalability, speed, and user experience, hindering widespread adoption. SEI is an open-source Layer 1 blockchain designed to tackle these issues head-on. The decentralized network has a special emphasis on high-speed transactions and offers a tailored approach for DeFi and gaming applications.
We talk about the network, its creation, benefits, and future in a new article from HiRiBi.
What is Sei? A Project Overview
Sei Network (SEI) is a Cosmos-based, open-source Layer 1 blockchain specifically designed for trading, focusing on speed, scalability, and security. It was launched on August 16, 2023, and has gained significant traction. As of the current date, SEI has a market capitalization of over $1.1 billion.
The network seeks to outperform other Layer 1 networks in trading applications such as DeFi DEXs, NFT marketplaces, and gaming DEXs. Its cutting-edge solution aims to solve the scalability issue for DEXs, making it the top choice for exchanges looking for customized infrastructure for their trading needs.
Sei outpaces the top 3 layer 1 networks—Bitcoin, Ethereum, and Solana—by a huge margin. Bitcoin has a transaction finality of 60 minutes, Ethereum has 6 minutes, and Solana has 2.5 seconds. In contrast, Sei claims a 500-millisecond finality, making it a highly scalable network.
Founders and Investors
The masterminds behind Sei Network are Jayendra Jog, Dan Edlebeck, and Jeffrey Feng. Jog previously served as a lead software engineer at Robinhood, a leading centralized crypto exchange. Edlebeck was the CEO of Exidio, a Cosmos-based VPN application, while Feng came in from Goldman Sachs.
On April 12, 2023, Sei announced that it had raised $30 million in two funding rounds, with notable investors including Jump, Distributed Global, Multicoin, Asymmetric, Flow Traders, Hypersphere, and Bixin Ventures. It has also attracted other big investors, including Coinbase and Delphi Digital.
Features: How Does Sei Work?
Twin Turbo Consensus Mechanism
SEI Twin-Turbo Consensus is a new consensus mechanism developed by Sei Labs that optimizes block propagation and processing, resulting in unprecedented blockchain speed and efficiency. This innovation builds upon the Tendermint consensus algorithm, pushing its limits to achieve remarkable performance enhancements. Sei’s Twin-Turbo Consensus mechanism reduced Tendermint’s 6-second block times to less than 400 milliseconds.
Key Components:
- Intelligent Block Propagation: SEI’s Twin-Turbo Consensus employs an optimized block propagation technique, ensuring that blocks are disseminated efficiently throughout the network, reducing latency and increasing overall throughput.
- Optimistic Block Processing: This component enables the blockchain to process blocks optimally, minimizing the time spent on block validation and finalization. This approach ensures that transactions are confirmed almost instantly, achieving a time-to-finality (TTF) of under 400 milliseconds.
Parallelized EVM
Sei Parallelized EVM allows for the parallel execution of Ethereum Virtual Machine (EVM) smart contracts. Parallel blockchains process multiple transactions simultaneously rather than one at a time, preventing front-running.
This innovation allows the chain to process thousands of transactions per second, making it a viable option for developers looking for a more scalable alternative to traditional EVM-based blockchains. It also allows the network to be backwards compatible with Ethereum smart contracts, allowing developers to deploy existing EVM-based applications without modifying their code.
SEI Order Matching Engine
The SEI Order Matching Engine is a high-performance, decentralized exchange (DEX) infrastructure that enables capital-efficient trading. It includes a native order-matching engine, similar to those found on centralized exchanges such as Binance and Coinbase, which allows DEX developers to build order-book-based exchanges.
SEI’s native order-matching engine provides a more extensive and advanced trading environment. Its features, such as single-block order execution, order bundling, and frequent batch auctioning, set it apart from other solutions and make it a more attractive option for DEX builders.
SEI Applications and Benefits
DeFi
For DeFi applications, Sei Network offers a transformative platform. Its high speed and low latency enable faster trade execution, reduced slippage, and a more seamless user experience. This is crucial for traders who rely on speed to capitalize on market opportunities. Moreover, the network’s scalability can accommodate the growing complexity of DeFi protocols, fostering innovation and the development of new financial products.
Gaming
The network’s high speed and low latency are essential for real-time interactions, such as multiplayer gaming and competitive esports. Players can expect smoother gameplay and reduced lag. Additionally, the network’s scalability can support vast virtual economies within games, allowing for more complex and immersive experiences. Microtransactions can be processed instantly, improving monetization for game developers.
Other Applications
Financial Services: Sei provides a highly scalable infrastructure that enables the deployment of effective DeFi and gaming platforms. This allows for fast, secure transactions and efficient financial services, catering to a wide range of decentralized applications.
Supply Chain Industry: The network can enhance supply chain management by ensuring the authenticity and traceability of products. Every step, from raw materials to end consumers, can be tracked, reducing fraud and improving transparency. This is crucial for industries like pharmaceuticals, food, and luxury goods.
Protecting Intellectual Property: Sei supports the management of digital rights, enabling digital creators to protect their intellectual property and be fairly compensated for their work. This is particularly important in the digital age, where content creators often struggle with piracy and unauthorized use of their work. The platform can track usage and ensure proper attribution and payment.
Identity Management: The network also secures digital identity solutions, allowing users to verify their identity without exposing sensitive information. This helps businesses comply with KYC (Know Your Customer) and AML (Anti-Money Laundering) regulations, meeting regulatory requirements. Additionally, it enhances user privacy and security by minimizing the risk of identity theft and fraud.
SEI is unlocking new possibilities for developers and users by addressing the scalability and speed limitations of existing blockchains. The network’s high-speed architecture has the potential to revolutionize not only gaming and DeFi but also other fields like supply chain management and intellectual property. As SEI continues to grow and mature, it has the potential to become a cornerstone of the decentralized economy.
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