Sei Network is a layer-1 blockchain built on Cosmos, which prioritizes reliability, security, and high throughput. Specifically designed for decentralized exchanges (DEXs) in DeFi, NFTs, and GameFi, Sei Network utilizes the Cosmos SDK to optimize exchange functionality.
Sei Network distinguishes itself as the first-ever order book-oriented blockchain. It connects with over 50 other interoperable layer 1s through IBC, enabling seamless communication. The blockchain incorporates several built-in features, such as a universally accessible order book, price oracles, and frontrunning protection, among others.
Developers working on Sei Network can access a comprehensive suite of tools to customize their applications, ensuring precise alignment with their specific requirements. Unlike other chains that impose uniform development frameworks or necessitate the creation of app-specific chains, Sei Network grants developers freedom and flexibility.
Sei Coin Price
The Sei protocol is still in its ‘Seinami’ testnet stage and is yet to announce a Sei token or a Sei token airdrop.
How Does Sei Work?
Sei Network relies on the Tendermint Core consensus mechanism, a tried and tested solution within the Cosmos ecosystem. Employing frequent batch auctions, Sei Network effectively prevents the exploitation of maximal extractable value (MEV) and front-running. By utilizing its validators, Sei Network guarantees a seamless trading experience for its users.
Sei Network operates as a dedicated Layer-1 blockchain exclusively catering to DeFi. It leverages the Cosmos SDK and establishes an order book as the foundation of the blockchain, supported by the Tendermint Core consensus mechanism. Order books serve as fundamental components of most exchanges, offering transparency regarding price, trade availability, depth, and the identities behind buy and sell orders.
Sei Network provides an alternative to automated market makers. Unlike AMM, Sei Network utilizes on-chain order books to match buy and sell orders at predetermined prices. This innovative approach facilitates the development of DeFi applications that can access Sei Network's centralized limit order book (CLOB) and leverage its substantial liquidity. By retaining the order book on-chain and building on the Cosmos SDK, Sei Network optimizes performance and stability.
Sei Network incorporates Intelligent Block Propagation and Optimistic Block Processing to further enhance its capabilities. Intelligent Block Propagation reduces transaction processing times by equipping validators with relevant transaction hashes, eliminating the need to wait for hash and block relays. This optimization leads to a 40% improvement in throughput. Optimistic Block Processing reduces latency and enhances throughput by allowing blocks to be processed at any given height, including during pre-vote and pre-commit operations.
Front-running protection is a critical aspect of Sei Network's design. Front-running occurs when a malicious actor places a similar trade to a prospective buyer and sells it immediately, resulting in losses for the buyer. Sei Network implements Frequent Batch Auctioning to prevent front-running while enabling users to extract maximal extractable value. Transactions are bundled together into batches within each block, and orders are executed simultaneously at a consistent clearing price, ensuring that the order of trades within a batch does not impact the price.
Furthermore, Sei Network operates as a permissioned blockchain, necessitating project vetting for listing. This approach limits the number of projects on the network but ensures a more optimized environment for the ecosystem.
What is Sei Used For
The Sei protocol is still in its ’Seinami’’ incentivized testnet stage. Sei Network is planning to launch their SEI token after the mainnet is deployed in the coming months. Although they have not yet published their tokenomics, they stated that 1% of its total supply will be allocated to airdrops. Expectedly, SEI will be used to pay gas fees on the network as well, but $SEI validators can opt to accept other IBC tokens for gas if the token has been approved by governance.
Sei Network, founded by Jeffrey Feng and Jayendra Jog. Sei Lab is one of the main contributors of the network. has assembled a highly experienced team, including professionals with prior work experience at renowned companies like Airbnb, Google, Goldman Sachs, Robinhood, Nvidia among others.
The network successfully secured $5 million in funding through a funding round led by Multicoin Capital. Notable participants in the funding round include Coinbase Ventures, Delphi Digital, Hudson River Trading, GSR, Hypersphere, Flow Traders, Kronos Research, as well as the founders of Anchorage, Frax, Yield Guild Games, and Tangent.
On April 11, 2023, Sei Network made an announcement of successfully raising $30 million through two funding rounds. The investors participating in these rounds include Jump, Distributed Global, Multicoin, Asymmetric, Flow Traders, Hypersphere, and Bixin Ventures. Furthermore, on April 12, 2023, Sei Network unveiled a significant commitment of $50 million from Foresight Ventures.