What is Sei?
Announced in March 2022 and geared specifically towards the exchange of digital assets, Sei is a layer-1 blockchain built on a new "Twin Turbo" consensus mechanism. With its high throughput, low latency, and novel order matching mechanism, Sei aims to combine all the best bits about centralized exchanges (CEXs) and decentralized exchanges (DEXs) in a blockchain specialized for the exchange of digital assets.
What problems does Sei solve?
Although blockchains and smart contracts have launched thousands of DEXs into the crypto world, the problems that come with them are distinct and persistent.
Ethereum, the most prevalent blockchain for smart contracts, can only process around 30 transactions per second or less. Your exchange order will have to fight tooth and nail against NFT mints and token transfers for a place in the next block while paying an eye-watering gas fee. Even with solutions such as rollups, capable of processing tens of thousands of transactions per second at around 15 cents each, your orders may still take several seconds to 1 minute to finalize. This is miles behind major CEXs, where your market orders can be matched and executed within milliseconds.
There’s more. Arbitrageurs are scanning 7/24 for profitable orders in mempools. They will front-run these orders by paying a much higher gas fee to bribe miners or validators into processing their orders first. Unsuspecting traders will have to suffer from the price impact and slippage these front-runners create and let them pocket millions of dollars in profit.
How does Sei work?
Built on Wasm and Tendermint Core, Sei is optimized for trading and claims to be the fastest blockchain in existence. Its Twin Turbo Mechanism is able to finalize orders in as low as 300ms on mainnet. Sei also implemented a market-based parallelization mechanism that increases its throughput by 5-10 times, much like Solana.
Another breakthrough Sei has made is in frontrunning prevention. All orders are batched together, and those of the same type (limit, market, etc.) will be processed simultaneously. This way, even if frontrunners 100x their gas fees, they won’t be able to have their orders executed before yours.
Even still in its testnet phase, Sei has already fostered a bustling ecosystem with new projects announced almost on a daily basis. Below is a collection of highlighted projects built on Sei.
While DEXs and DeFi protocols dominate Sei’s projects and partners list, GameFi, NFT, and even social projects may also leverage some of Sei’s flagship features and offer unique experiences and solutions.
As one of Sei’s institutional partners and a global leader in the cryptocurrency space, Bitget has taken a giant leap with its recent $50M strategical investment into Sei, aiming to help address some of the significant challenges in the DeFi landscape and create a more efficient, benign DeFi ecosystem.
Sei’s token launch is also imminent, and Bitget is proud to be one of the first listing exchanges. SEI token deposit is open now, and at 12:00 PM (UTC), August 15, 2023, SEI/USDT will be open for trading. Register now, start trading SEI, and enjoy your world-class social trading experience on Bitget!
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