Sei Network: A New Generation Public Chain Born for High-Speed Trading

Recently, the cryptocurrency industry has suffered a severe blow, with the prices of most crypto assets being cut in half, and the market has fallen into a slump again. This turmoil has caused users to lose confidence in centralized exchanges, further highlighting the necessity of developing decentralized exchanges. Sei Network, as a new public chain built on the Cosmos SDK, aims to become the preferred platform for decentralized trading in fields such as DeFi, NFTs, and GameFi.

Sei features built-in order book infrastructure, extremely fast execution speed, deep liquidity, and fully decentralized matching services, providing a safer, more transparent, efficient, and reliable network environment for decentralized exchanges, as well as bringing new innovative opportunities to the cryptocurrency market.

Sei: A High-Speed Public Chain Focused on Trading

Unlike generic public chains and application-specific public chains, Sei has chosen a middle path - a public chain born for trading. Sei has made comprehensive optimizations at the technical level to provide the best trading infrastructure while maintaining enough flexibility to support various trading applications.

As a trading public chain, Sei's goal is to solve the scalability issues of existing on-chain exchanges and become the fastest Layer 1 network. To achieve this, Sei has implemented many innovations in its underlying architecture:

• Twin Turbo consensus mechanism: can achieve a final confirmation time of 300 milliseconds, which is 10 times faster than Solana.

• Composable order matching module: supports dApp synchronous composability and achieves cross-chain asynchronous composability through bridging.

• Market-based parallelization technology: increases throughput by 5-10 times, supporting batch order processing.

• Deep Liquidity Center: Provides an efficient and low-cost trading environment for DeFi, GameFi, and NFT applications.

These technological innovations make Sei a unique trading-exclusive public chain, offering developers new possibilities and bringing new opportunities for the development of blockchain and Web3.

Technical Advantages of Sei

Order Matching Engine

As a Layer 1 public chain based on Cosmos, Sei not only supports asset transfers and smart contract deployments, but also has an order book and matching engine built-in at the chain level. This allows developers to easily build order book-based exchanges without starting from scratch to build an order book system, greatly improving development efficiency.

The order book design of Sei is similar to that of centralized exchanges, supporting limit orders and allowing asset values to be updated based on executed orders. This design is beneficial for providing higher liquidity and better price discovery mechanisms. Although launching and maintaining an order book trading platform is technically more challenging, Sei aims to provide developers and users with a system that combines security, reliability, and cost-effectiveness.

parallel order execution

Sei's parallel order execution mechanism is a major breakthrough. It can process orders sequentially within the same market while concurrently handling orders from different markets. This significantly enhances Sei's throughput while ensuring behavioral consistency among validators.

According to Sei's internal testing, under the conditions of 10,000 orders and 20 different contracts per block, parallel execution can reduce the block time from 1.33 seconds to 0.81 seconds, the latency from 371 milliseconds to 48 milliseconds, and the throughput from 7,500 TPS to 12,200 TPS. As the load increases, this optimization effect will become even more significant.

Twin-Turbo Consensus Mechanism

The Twin-Turbo consensus mechanism of Sei has optimized and upgraded the ABCI of Cosmos, making each step of the consensus programmable. This mechanism includes two key components:

1. Intelligent Block Propagation: Block proposers only send compressed block proposals containing transaction hashes. Validators can reconstruct the block from the local memory pool without waiting to receive the complete block content, greatly reducing block propagation time.

2. Optimistic Block Processing: Validators can skip the pre-vote and pre-commit steps and directly call the block finalization function. At the same time, validators can also process the first block proposals received at any height in parallel, writing the state to the cache to reduce waiting time.

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

In addition, Sei has introduced other innovative features:

• Single block order execution: Allows placing and executing orders within a single block.

• Order packing: Market makers can update multiple market prices in a single transaction.

• Frequent batch auctions: Market orders are aggregated at the end of the block and settled at a single price, reducing front-running.

• Native price oracle: Ensures reliable price information for on-chain markets.

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

Sei Network Ecosystem Development Status

Sei places great importance on ecological construction. Since 2023, Sei has successively obtained a $20 million ecological investment fund from MEXC and a $50 million ecological investment fund from Foresight Ventures and Bitget. In addition to the previous $50 million investment from institutions such as Multicoin Capital and DelphiDigital, the total scale of the Sei ecological fund has reached $120 million. This funding provides Sei with ample resource support, helping to expand its influence in the blockchain field.

Although the mainnet has not yet launched, the Sei ecosystem has attracted over 150 teams for development, covering multiple areas such as infrastructure, DEX, MEV, cross-chain, NFT, and collateral lending. According to official disclosures, there are currently about 70 partnership projects, focusing on decentralized exchanges, infrastructure, wallets, and cross-chain bridges.

Key projects in the Sei ecosystem include:

Decentralized Exchange:

• Sushiswap: Launched a decentralized perpetual futures exchange on Sei
• Satori: Provides on-chain derivatives protocol

Infrastructure:

• White Whale: A cross-chain liquidity protocol that provides tools for arbitrage, flash loans, and more for Sei.
• Kado: Supports Sei users to transfer and manage assets using non-custodial wallets.

Wallet:

• Keplr: A cross-chain wallet supporting Sei tokens and applications.
• Cosmoscan: provides block explorer services for Sei

Cross-Chain Bridge:

• Gravity Bridge: The cross-chain bridge connecting Cosmos and Ethereum.
• Axelar: provides multi-chain liquidity pools to help Sei gain liquidity outside of Cosmos.

The addition of these collaborative projects has injected new vitality into the Sei ecosystem and provided users with richer choices.

Summary

Sei Network is committed to building a high-performance blockchain focused on DeFi infrastructure. Through innovative technologies such as modular order matching, Twin-Turbo consensus, and parallel order execution, Sei provides optimized infrastructure for trading applications and exchanges. In the rapidly evolving field of cryptocurrency trading, Sei is becoming the preferred solution for traders, developers, and the gaming community due to its exceptional speed, scalability, and cost-effectiveness.