Sei Network: A Layer 1 public chain born for high-speed trading

Recently, the crypto market has been turbulent, leading to a decline in trust towards centralized exchanges, making the development demand for decentralized exchanges (DEX) more urgent. Sei Network, as a Layer 1 public chain built using Cosmos SDK, aims to become the preferred infrastructure for DEXs in fields such as DeFi, NFT, and GameFi. Sei provides a more secure, transparent, and efficient network environment for DEXs through its built-in order book, rapid execution, deep liquidity, and fully decentralized matching services, bringing new innovative opportunities to the crypto market.

Sei: A high-speed Layer 1 blockchain designed for trading

Compared to general-purpose public chains and specific application chains, Sei has found a balance between the two, becoming a public chain built specifically for trading. Sei has optimized various layers of the technology stack to provide the best trading infrastructure, while also maintaining a certain level of versatility to support various trading applications.

As a trading public chain, Sei's goal is to solve the scalability issues faced by current on-chain exchanges and to become the fastest Layer 1 public chain. To this end, Sei has implemented several important improvements to the underlying network architecture:

1. Twin Turbo consensus mechanism: achieves a finality time of 300 milliseconds, which is 10 times faster than Solana.

2. Composable architecture order matching module: enables dApps on Sei to have synchronous composability.

3. Market-based parallelization technology: Increases throughput by 5-10 times, supports batch processing of orders.

4. Liquidity Management System: Providing deeper liquidity and cost-effectiveness for DeFi, GameFi, and NFT applications.

The emergence of Sei has filled the gap of dedicated public chains for trading, bringing new opportunities for the development of blockchain technology and Web3, and providing more possibilities for the circulation and trading of digital assets.

The technical advantages of Sei are disrupting the traditional DEX network environment

As regulatory pressures on centralized exchanges increase, DEXs need to scale to accommodate larger adoption. Sei was created to address the scalability issues of DEXs, allowing exchange applications to scale effectively while maintaining decentralization and capital efficiency. The main technological advantages of Sei include:

1. Order Matching Engine

Sei has created an order issuance and matching engine at the chain level, allowing developers to directly use this engine to build order book-based exchanges without starting from scratch, significantly improving development efficiency. The order book design of Sei is similar to that of centralized exchanges, providing higher liquidity and better price discovery mechanisms.

2. Parallel Order Execution

Sei can process orders within the same market in sequence while concurrently handling orders from different markets. This significantly increases throughput while ensuring deterministic behavior among validators. This optimization is particularly evident under high load conditions.

3. Twin-Turbo Consensus Mechanism

The mechanism consists of two parts: intelligent block propagation and optimistic block processing.

• Smart Block Propagation: Block proposers can send compressed block proposals, and validators can reconstruct blocks from the local memory pool, significantly reducing wait times.

• Optimistic block processing: skip the pre-voting and pre-submission steps, directly call the block finalization function to speed up the verification process. Validators can also process the first block proposal at any height they receive in parallel.

Through the Twin-Turbo mechanism, Sei has shortened the block confirmation time to 500 milliseconds, achieving a throughput of 20,000 transactions per second.

Other function improvements

1. Single block order execution: allows placing and executing orders within a single block.

2. Order Bundling: Market makers can update multiple market prices in a single transaction.

3. Frequent bulk auctions: Aggregate market orders at the end of the block and settle at a single price.

4. Local Price Oracle: Integrated into the base layer to ensure reliable on-chain price information.

These features further enhance the efficiency and scalability of Sei, making it a more comprehensive blockchain network.

Sei Network Ecosystem Development Status

Sei has received multiple rounds of ecological investment funds in 2023, with a total scale of 120 million USD, reflecting the optimism of all parties regarding Sei's prospects. Although the mainnet has not yet been launched, the Sei ecosystem has attracted over 150 teams to develop projects, covering various fields such as infrastructure, DEX, MEV, cross-chain, NFT, and collateral lending.

Key projects in the Sei ecosystem include:

Decentralized Exchange ( DEX ):

• Sushiswap: Launching a decentralized perpetual futures exchange on Sei
• Satori: Provides on-chain evolution product protocol

Infrastructure:

• White Whale: Cross-chain liquidity protocol, will conduct airdrop activities on Sei.
• Kado: Supports Sei users to transfer using non-custodial wallets.

Wallet:

• Keplr: supports tokens and applications for Sei
• Cosmoscan: provides a block explorer for Sei

Cross-Chain Bridge:

• Gravity Bridge: Supports asset transfer between Cosmos and Ethereum
• Axelar: provides services such as multi-chain liquidity pools

Summary

Sei Network is dedicated to building a blockchain focused on DeFi infrastructure, introducing multiple technological innovations to improve the trading experience. With features such as modular order matching, Twin-Turbo consensus, parallel order execution, and native price oracles, Sei provides the best infrastructure for trading applications and exchanges. As a high-performance, general-purpose Layer 1 public chain, Sei has become the preferred solution for traders, developers, and the gaming community.