Sei Network: A High-Speed Layer 1 Public Chain Focused on Trading

The cryptocurrency market has been turbulent recently, and regulatory events have triggered a trust crisis in centralized exchanges, further highlighting the necessity of developing decentralized exchanges (DEX). As a Layer 1 public chain built using the Cosmos SDK, Sei Network aims to be the preferred infrastructure for DEX in the fields of DeFi, NFT, and GameFi. Sei provides a more secure, transparent, and efficient network environment for DEX 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 public chain born for trading

Traditional Layer 1 public chains can be roughly divided into general-purpose ( such as Ethereum, Solana ) and application-specific ( such as dYdX, Osmosis ). Sei, as an emerging public chain, has found a balance between these two, becoming a public chain specifically designed for trading. Compared to general-purpose public chains, Sei has optimized various layers of the tech stack to provide the best trading infrastructure. Compared to application-specific chains, Sei is more general-purpose and can support various trading applications rather than being limited to a single application.

As a trading-specialized public chain, Sei is committed to solving the scalability issues of on-chain exchanges, with the goal of becoming the fastest Layer 1 public chain. To achieve this, Sei has made 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. The composable order matching module enables dApps on Sei to have synchronous composability.

3. Market-based parallelization technology increases throughput by 5-10 times.

4. Support for batch processing of orders, simplifying the process of updating multiple orders across exchanges.

5. Liquidity management system, providing deep liquidity and efficient trading for DeFi, GameFi, and NFT applications.

The emergence of Sei fills the gap of dedicated public chains for trading, bringing new opportunities for the development of blockchain technology and Web3, as well as providing more possibilities for digital asset trading.

Technical Advantages of Sei

With the rapid development of Web3, exchanges are becoming increasingly important as asset trading hubs. The market is currently mainly divided into centralized and decentralized exchanges. Recent regulatory pressures have pushed the market towards DEX, which necessitates that DEX have scalability capabilities to accommodate large-scale adoption. Sei was born to address the scalability issues of DEX, with key technological advantages including:

Order Matching Engine

Sei has created an order placement and matching engine at the chain level, allowing developers to directly use this engine to build order book-based exchanges without starting from scratch. This greatly improves technical and cost efficiency. Sei's order book design is similar to that of centralized exchanges, providing higher liquidity and better price discovery mechanisms.

parallel order execution

Sei can process orders within the same market in sequence while processing orders from different markets in parallel. This significantly increases throughput while ensuring deterministic behavior among validators. This optimization effect is particularly pronounced under high loads. Test data shows that with 10,000 orders/block and 20 different contracts, parallel processing can reduce block time from 1.33 seconds to 0.81 seconds, latency from 371 milliseconds to 48 milliseconds, and throughput from 7,500 to 12,200 orders/second.

Twin-Turbo consensus mechanism

The mechanism optimizes Cosmos's ABCI, making each step of the consensus programmable. It consists of two parts:

1. Smart Block Propagation: Block proposers send compressed block proposals that only contain transaction hashes. Validators can reconstruct the block from the local memory pool without waiting for the complete block to arrive, significantly reducing wait times.

2. Optimistic Block Processing: Skipping the pre-vote and pre-commit steps, validators can directly call the block finalization function and process the first block proposal in parallel, writing the state to the cache.

Through the Twin-Turbo mechanism, Sei has shortened the block confirmation time from 6 seconds to 500 milliseconds, achieving the fastest final block confirmation in the network with a throughput of 20,000 transactions per second.

In addition, Sei has also added features such as single-block order execution, order bundling, frequent batch auctions, and local price oracles, further enhancing network efficiency and scalability.

Sei Network Ecosystem Development

Sei places great importance on ecological layout and has already obtained multiple ecological investments this year, with a total scale of 120 million USD, including:

• MEXC's $20 million cryptocurrency ecosystem fund
• Foresight Ventures and Bitget's $50 million crypto ecosystem fund
• A $50 million investment from institutions such as Multicoin Capital, Delphi Digital, and Hypersphere.

These funds will help Sei expand its influence and market share. Currently, the Sei mainnet has not yet been launched, but it has attracted over 150 teams to develop projects covering various fields such as infrastructure, DEX, MEV, cross-chain, NFT, and lending. The official website discloses about 70 cooperative projects, focusing on DEX, infrastructure, wallets, and cross-chain bridges.

Key projects include:

DEX:

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

Infrastructure:

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

Wallet:

• Keplr: supports Sei tokens and applications
• Cosmoscan: provides Sei blockchain explorer

Cross-chain bridge:

• Gravity Bridge: Supports asset transfer between Cosmos and Ethereum
• Axelar: provides cross-chain liquidity services

Sei Network, as a blockchain focused on DeFi infrastructure, provides the best infrastructure for trading applications and exchanges through technological innovations such as modular order matching, Twin-Turbo consensus, and parallel order execution. In the fast-paced trading and innovative technology space, Sei's high performance and versatility make it the preferred solution for traders, developers, and the gaming community.