What Is Sei?
- Sei is a general-purpose Layer-1 chain that aims to become the go-to blockchain for decentralized exchanges (DEXs) in DeFi, NFTs, and gaming.
- It offers lightning-fast transaction finality of 600ms, rivaling centralized exchanges and surpassing existing DEXs.
- Sei prioritizes security by implementing frequent batch auctions to prevent MEV and front-running.
Sei is an innovative Layer-1 (L1) blockchain, specifically designed to revolutionize the world of trading within various sectors spanning across decentralized finance (DeFi), NFTs, and GameFi. Positioned as the "Decentralized NASDAQ," Sei offers a seamless blend of centralized finance (CeFi) trading experiences with decentralized finance tools.
In recent years, the growth and success of on-chain asset trading have become evident.
However, as the demand for these applications continues to rise, existing L1 and L2 infrastructures face significant challenges in scaling. Referred to as the "Trading Trilemma" in Sei's litepaper, the trilemma arises from the inability of trading applications to achieve decentralization, scalability, and capital efficiency simultaneously.
To overcome these obstacles, trading apps require purpose-built infrastructure that can cater to their unique needs regarding speed, throughput, reliability, and mitigating miner-extractable value (MEV). Sei emerges as a solution to address the scalability problem faced by DEXs and enables trading apps to scale effectively while upholding decentralization and capital efficiency.
If Sei proves successful, trading apps will no longer have to compromise on decentralization. Users will be able to enjoy a user experience that is akin to traditional Web2 applications while retaining the essential benefits of decentralization, including trustless and permissionless transactions with no risk of censorship. Sei's aim is to strike a balance between user experience and the fundamental principles of decentralization.
Leveraging on features such as front-running prevention via batch auctioning, native price oracles, and the Centralized Limit Order Book, Sei aspires to provide a DEX solution that can rival centralized counterparts in terms of efficiency and security.
How does Sei Work?
Sei implements several innovative features to address the challenges faced by DEXs and aims to revolutionize the trading experience by combining off-chain speed with on-chain security.
One of the notable features offered by Sei is the prevention of front-running through the use of frequent batch auctioning. DEXs often struggle with order processing, as they either bypass on-chain execution, leading to potential security concerns, or overload blockchains when executing orders on-chain. This trade-off is commonly known as the Blockchain Trilemma, where achieving high decentralization, security, and scalability simultaneously becomes challenging. Sei tackles this issue by aggregating orders at the end of each block and executing them simultaneously, mitigating the risk of front-running.
Moreover, Sei leverages native price oracles, ensuring reliable data feeds and reducing external dependencies. Unlike other DEXs, Sei adopts a single-block order execution mechanism. This approach enables the placement and execution of an order within a single transaction, eliminating the need for separate steps. Additionally, Sei bundles orders on multiple levels, allowing market makers and professional traders to optimize gas costs.
These features collectively position Sei as a potential alternative to centralized exchanges (CEXs), presenting its value proposition as a "decentralized NASDAQ." While many DEXs rely on automated market makers (AMMs) for trading, this approach has not garnered significant market share, with CEXs still dominating trading volume. Sei aims to differentiate itself by introducing an order book model called the Centralized Limit Order Book (CLOB). By employing this model, Sei seeks to offer a familiar trading experience while harnessing the benefits of decentralized infrastructure.
Key Features of Sei
Sector-Specific Focus on Trading
One of the key distinguishing factors of Sei is its sector-specific focus on trading, and it aims to serve as the go-to blockchain for various applications in the DEX (decentralized exchange) sector. This strategic approach enables Sei to tailor its capabilities specifically to the needs of the entire crypto trading sector including DEXs, DeFi protocols, non-fungible token (NFT) platforms, and even gaming applications.
Sei's overarching mission encompasses three main areas: enhancing performance, ensuring security, and fostering interoperability. By prioritizing these aspects, Sei aims to redefine the trading experience within the DeFi space.
In terms of performance, Sei promises lightning-fast transaction finality, boasting the industry's fastest time to finality, reaching an impressive lower bound of 300ms. This remarkable speed is achieved through the incorporation of built-in parallelization within its infrastructure, rendering it highly suitable for trading functionalities. The underlying technological advancements of Sei are founded upon two groundbreaking contributions in the field of consensus research, specifically the utilization of Twin-Turbo consensus.
This innovative consensus mechanism enables Sei to attain unprecedented levels of performance that surpass any other L1 blockchain in existence and enables Sei's native order matching engine model to outperform traditional automated market maker (AMM) trading models commonly used in DEXs.
Security is a paramount concern for any blockchain platform, and Sei addresses this by employing frequent batch auctions which actively mitigates the risks associated with miner-extractable value (MEV) and front-running. This provides a robust security framework for applications built on Sei, ensuring a smooth and secure trading experience for users.
Sei also recognizes the importance of interoperability and has strategically partnered with various protocols to maximize its potential in this area. Notably, Sei has formed a partnership with Axelar, a renowned cross-chain infrastructure provider. Through this collaboration, Sei aims to enhance its bridging capabilities, facilitate seamless communication with other protocols, and enable efficient movement of capital to and from other blockchains. This interoperability paves the way for a broader ecosystem and improves accessibility for users.
Sei x Foresight Ventures
In April, Sei Labs, the team behind Sei, announced that it has secured a significant commitment of $50 million from Foresight Ventures, a prominent venture capital firm. This substantial commitment contributes to the overall Sei Ecosystem Fund, which now stands at $120 million, including previous contributions from various entities such as Multicoin, GSR, Hudson River Trading, and others. This recent development further solidifies Sei's position as a competitive player in the L1 blockchain landscape.
Jay Jog, Co-Founder of Sei Labs, expressed enthusiasm for the partnership, emphasizing the pivotal timing to support exceptional teams within the Sei ecosystem. The commitment from Foresight Ventures is expected to accelerate the growth of the Sei ecosystem and expand its presence in the Asia-Pacific region, building upon Sei's global footprint.
The bolstered Ecosystem Fund, now totaling $120 million, aims to provide crucial resources and support to founders and teams working across various sectors of Web3, including NFTs, gaming, and DeFi. By leveraging Sei's global resources, the fund seeks to assist these teams in acquiring users, expanding into new regions, and establishing a stronger presence. Sei's unparalleled speed and optimized performance at the chain level enable DEXs and trading applications to offer exceptional user experience, making it an attractive platform for trading activities.
Sei x Bitget Wallet (Previously Bitget Wallet (Previously BitKeep))
Bitget Wallet (Previously Bitget Wallet (Previously BitKeep)), the leading multi-chain wallet in the Web3 space, has established a seamless connection with Sei, enabling users to efficiently access and explore the extensive ecosystem offered by Sei. Recognizing the significance of Sei’s growth and potential, Bitget Wallet (Previously Bitget Wallet (Previously BitKeep)) is committed to closely monitoring its developments and ensuring support for Sei’s mainnets, tokens, and diverse range of applications. Additionally, Bitget Wallet (Previously Bitget Wallet (Previously BitKeep)) is preparing to launch several engaging events, such as gasless trading and a dedicated Sei special zone, designed to offer users an immersive and comprehensive experience within the Sei ecosystem.
By integrating with Sei, Bitget Wallet (Previously Bitget Wallet (Previously BitKeep)) aims to provide its users with enhanced accessibility and a deeper understanding of the various opportunities and benefits available within the Sei ecosystem. This collaboration emphasizes the positive relationship between Bitget Wallet (Previously Bitget Wallet (Previously BitKeep)) and Sei, as both entities actively work together to create a user-friendly environment for individuals to navigate and engage with the innovative features and functionalities offered by Sei.
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