Ever since the 2020-2021 crypto market bull run, the realm of crypto and DeFI asset trading has grown exponentially. Every other year, dozens, if not hundreds, of DeFI projects launch, adding to the number of tokens to trade on decentralized exchanges.
Of course, the rise of many DeFI tokens led to the emergence of trading platforms like UniSwap, Pancakeswap and more, helping trade crypto assets.
However, platforms like Uniswap and PancakeSwap are not designed to deal with the constantly growing demand associated with Dapp growth. For this reason, a new platform, Sei, was launched within the crypto realm to improve infrastructure for crypto trading.
What is Sei Network?
By the simplest definition, Sei Network is a Cosmos-based blockchain specially optimized for the DeFi realm. It’s a layer-one blockchain focusing on high speed, low fees, and a feature-rich experience.
In other words, Sei is specially designed as a crypto tool that changes the digital currency trading world, especially Dex. This L1 network enjoys a lower bound of 300ms and 20K OPS being processed.
Sei claims that every DEX, NFT marketplace and even gaming DEX can operate more efficiently on top of their L1. The network intends to fully address the blockchain trading trilemma, balancing scalability, decentralization and capital efficiency.
The team associated with the development of Sei built an open-source version of the project. Sei believes that in the current state of L1, it’s becoming hard for DEXes and marketplaces to exist and function effectively.
Troubles like lacking scalability, capital efficiency and decentralization are crippling major L1s, causing issues to marketplaces and exchanges built on them. However, SEI focuses on building an L1 network designed mainly for trading.
Founders?
Crypto and tech experts, including Jeffrey Fengm, Dan Edlebeck and Jayendra Jog, developed Sei. Most of these project creators are experts in finance and technology. For instance, Jeffrey Feng worked at Goldman Sachs, Jayendara Jog at Robinhood, and Dan Edlebeck as a CEO at Exidio.
How Does Sei Network Work?
Deep within Sei’s trading solutions are several strong components all working together to provide the best experience. Among the most critical features of the Sei Networks include:
Twin-Turbo Consensus
To provide the best infrastructure for crypto-focused exchanges, the Sei network implanted the Twin Turbo consensus system, which combines two features: intelligent block propagation with optimistic block processing.
What is Optimistic Block Processing?
This Optimistic block processing mechanism is a brainchild of Sei, focused on bolstering transaction processing speed and block time. But how does it achieve this?
In non-optimistic chains, block validations follow a particular preset sequence. This means there are many steps before block finalization, including pre-voting and pre-commit.
Optimistic block processing generally skips to critical steps, pro-voting and pre-commit. Sei can concurrently deal with pre-commit and pre-vote while also processing the block. As such, the validators can immediately call on the block finalization function.
The optimistic block validation allows Sei to process over 22K transactions every second.
What is Intelligent Block Propagation?
In traditional blockchain networks, the block propagation system demands that block proposers send detailed block contents for processing. However, Sei came with a twist!
Owing to this block propagation system, proposers only need to send compressed block proposals. The proposals only contain critical details like transaction hashes.
By receiving the compressed proposals, validators can reconstruct the blocks using the readily available transaction details or wait for the detailed proposal. Sei network’s approach helps attain top speed, increasing the throughput by 40%
Parallel Order Execution
Another way Sei bolsters its throughput is through a Parallel order execution mechanism.
This means the Sei network can simultaneously process orders originating from independent markets. At the same time, orders coming from the same market will use the traditional sequential method.
Sei bolsters its throughput by processing transactions sequentially, bringing low latency and faster blocks.
An Order Matching Engine
At the very core of the Sei Network is an inbuilt order-matching engine. This tool enables the entire trading activities associated with the Sei network.
The order matching engine helps developers to build orderbook based exchanges on top of Sei seamlessly. In essence, developers can leverage the popular central limit order book systems when building exchanges. Developers can create an order book system defined to be more cost effective when compared to average AMMs.
Moreover, Sei supports the development of AMMs, which are highly popular in DEXs and DeFI.
Sei affords developers with strong infrastructure, like the order matching engine, to bolster efficiency with a limit-order design space.
Components of The Order Matching Engine
The order matching engine afforded by Sei comes with features like order bundling, frequent batch auctioning, and price oracle.
- Single Block Order Execution — Users can simply make and execute orders on Sei in a single block, enjoying a better experience.
- Order Bundling — Market makers have the option of updating prices on more than one market in a single transaction, hence streamlining the process of trading
- Frequent Batch Auctions –
- Native price oracle helps get reliable real-time price feeds from other on-chain markets.
SEI Bridge
The SEI bridge is one of the most vital tools the SEI network brings. As with the basic meaning of a bridge, SEI Bridge is specially designed to facilitate the cross-blockchain transfer of assets.
Based at the heart of the Cosmos ecosystem, the SEI network aims to be fully interoperable with other chains. By bringing the bridge, Sei improves the interoperability of the network while bolstering user experience.
How Can You Get Started With Sei?
Sei Network, as already mentioned, will be providing a world of options for its users. It aims to provide solutions not only for individuals but also developers.
But how can both these groups get started with this technology?
How Individuals Get Started with Sei
The first step for new users is creating a personal Sei Wallet which acts as the gateway to your interaction with the Sei blockchain and applications built on it.
Only after creating a personal wallet can you explore the Sei Hub. Here, you get access to a wide array of staking options to help in network security. Furthermore, you get a chance to engage with the larger Sei community.
Finally, the last step involves bridging assets to the Sei Network. This will give you access to many Dapps and services, all through Sei.
How Developers Get Started with Sei!
Developers, too, can enjoy a wide range of tools afforded within the network. But how?
Before starting, an ambitious developer should first read the developer docs. The documentation allows people to start building easily on the L1 blockchain.
Secondly, developers can also participate by contributing to the development works of the Sei ecosystem through collaborations with the GitHub community.
As a developer, interacting with others of the same talent can help you grow your skills. Participate in the builders’ chat forum, where you can share insights, collaborate and support each other.
What is Sei Token?
Encoded deep within the bounds of the Sei network in the native coin called SEI. This token SEI plays a primary role in the activities associated with the Sei Ecosystem, the DEX, bridge and more. Its applications include the following;
- Utility — As a payment asset within the Decentralized exchange network.
- Governance — WIthin the Sei ecosystem, token holders enjoy the opportunity to participate in various governance decision-making. Stakeholders have the option of proposing and voting for network upgrades. This community governance completely fosters decentralization.
- Exchange — As a crypto token, Sei is available on various exchange networks, where traders can buy and sell for profits.
What are The Prospects of Sei?
This SEI is among the most undervalued crypto assets of 2024. When writing the report, the SEI token traded at an average price of about $0.86.
The coin had surged from $0.22 in Dec 2023 to $0.79 by March 2024. This is nearly a 4x gain in merely three months. SEI’s all-time high was recorded in Feb 2024 at $1.03.
The network’s product offering and the range of exchange products make this project highly futuristic. As such, investors should expect immense price gains associated with the SEI network token.
An important point to note is that Sei is vastly underperforming compared to other crypto assets in the market. It’s underperforming when compared to its peers.
Where Can You Buy Sei?
So, where can investors purchase SEI?
The token is available in various crypto exchange networks, including the most popular one, Binance. Here’s a short list of exchanges and markets to access Sei tokens from:
- Binance — The largest crypto exchange platform by trading volumes is perhaps the largest marketplace to access the Sei token. When writing this report, the SEI/USDT market was the most popular Sei market on Binance. Others included SEI/BTC, SEI/FDUSD and SEI/TRY.
- Coinbase Exchange — The second most popular exchange Coinbase stands also amongst the popular crypto exchanges sporting SEI markets. The SEI/USD pair was available on Coinbase when writing this report.
- Bybit — This exchange supports the SEI/USDT and SEI/USDT pairs.
- HTX — Another exchange supporting SEI is HTX, offering the SEI/USDT pair
- Gate.io — Available on Gate.io is the SEI/TRY and SEI/USDT pair.
Other exchanges supporting the purchase and sale of Sei include Kraken, Kucoin, Osmosis, Upbit, Bitget, MEXC and many more.
Benefits of the SEI Network?
Finally, every investor wants to know how they can benefit from using the Sei Network. What benefits does the SEI network afford the average users:
- Energy efficiency — Using a futuristic consensus mechanism, the Sei network offers energy efficiency and optimal resource allocation. This reduces power consumption and network carbon footprint.
- Top security — Sei brought top security features like encryption, auditing and cryptographic algorithms. The idea is the total protection of network participants.
- Developer-friendly network — Developers enjoy a wide array of tools, including APIs and even enough documentation for instruction.
- Easier integration — The network is created to foster easy integration and interoperability with other protocols
- Community support — Sei has very large and supportive customer support.
- Speedy blockchain – Sei claims to be the fastest blockchain in crypto.
- High scalability — Owing to Sei’s scalability, projects can grow to extreme heights
- Adaptability – Sei was created to adapt to future needs, making it a futuristic chain.
Conclusion
This guide has widely explored the world of the Sei network and its native token. The blockchain created specifically for exchanges aims to provide efficiency and simplicity in the trading realm. Its native token is expected to make massive price gains soon.
