|August 15, 2023
|Jayendra Jog and Jeffrey Feng
|Utility and Governance
|Proof of Stake (PoS)
What is Sei (SEI)?
Sei, an open-source layer1 protocol meticulously designed for general purposes, is poised to revolutionize the exchange of digital assets. Positioned as the fastest chain in the crypto landscape, Sei boasts an impressive transaction finality of just 500 milliseconds and a staggering throughput of 20,000 orders per second. The native token of the Sei network, SEI, serves a myriad of functions, ranging from network fees and staking to collateral, trading fees, and protocol governance.
Founded by a dynamic trio consisting of Jayendra Jog, Jeffrey Feng, and a seasoned team comprising marketers, developers, and strategists, Sei made its much-anticipated mainnet debut on August 16. The launch was accompanied by a generous $1 billion SEI tokens airdrop for participants in its testnet. Noteworthy backers of Sei include prominent names in the crypto sphere such as Multicoin Capital, Delphi Digital, Coinbase, and Layer Zero.
How does Sei (SEI) work?
Sei leverages the Cosmos SDK and employs the Twin Turbo Consensus to construct an ecosystem that excels in scalability and efficiency for decentralized applications. Let’s delve into the specific challenges that Sei addresses and explore its distinctive features.
Front Running Prevention:
Front-running, a nefarious practice where a trader exploits foreknowledge of pending transactions, is a prevalent issue in the crypto trading arena. Sei tackles this problem adeptly through frequent batch auctioning. Instead of processing orders individually, Sei aggregates them at the conclusion of each block, executing them simultaneously. This innovative approach significantly mitigates the risk of front-running, ensuring a fairer trading environment.
Native Price Oracles:
Unlike conventional trading platforms that rely on external data sources for price feeds, Sei takes a bold step by utilizing native price oracles. By eliminating dependence on external servers, Sei enhances the security of user data and funds, providing reliable and accurate data feeds for seamless trading experiences.
Single-Block Order and Bundling Execution:
Sei streamlines the trading process by combining order placement and execution within a single-block transaction. This not only optimizes efficiency but also reduces the complexity associated with trading. Furthermore, Sei facilitates order bundling on multiple levels, empowering traders and market makers to minimize overall trading fees.
In conclusion, Sei emerges as a beacon of innovation, addressing the trilemma that has long plagued blockchain development. With its exceptional speed, efficiency, and commitment to resolving key issues in the crypto space, Sei stands poised to reshape the landscape of decentralized applications and digital asset exchange.