How to work Sei Network
A French team of developers has presented a unique L1 blockchain project — Sei Network. Its main characteristics are increased security, high transaction speed, and parallelization of operations to improve efficiency. This gives Sei blockchain a chance to become one of the most demanded crypto projects in the near future. But what principles does Sei Network operate on?
To understand the uniqueness of the new L1 blockchain, it is necessary to recall the current problems in the crypto industry. Currently, most trading operations with crypto assets go through centralized exchanges (CEX) or decentralized ones (DEX). Centralized ones are popular due to partial recognition by state regulators and legal registration (in most cases). However, their vulnerable spot is that users’ assets are stored on the company’s balance sheet. In case of financial crises, fraud, or hacker attacks, the company can go bankrupt, destroying both its assets and those of its clients. This happened with Terra, FTX, and other major players in the crypto industry.
Decentralized exchanges are more reliable because they do not store clients’ assets but only provide a platform for exchange. However, their transaction speed is very slow because every operation must be recorded on the blockchain. That is why most decentralized exchanges are constantly overloaded and slow.
Thus, a crypto trader has only two options: either to trust his assets to a company that can take them away at any time or to work on extremely slow exchanges that do not allow lightning-fast operations and earn profits. And that is why the new Sei blockchain has attracted such increased attention.
Sei Network blockchain uses the principle of specialization. Instead of creating blockchains for all types of decentralized applications, they focused on creating an industry-specific blockchain. In this case, it is trading.
By focusing solely on traders’ needs, they have achieved high transaction speeds — about 600 milliseconds, low transaction fees, and increased security (especially from frontrunning).
In addition to the principle of specialization, the Sei team also used the principle of atomic composability. All applications work only on one blockchain, which allows easy integration of projects by different developers. Another principle was an orientation towards the entire crypto community. The developers provided for the possibility of Sei Network’s work with other blockchains, as well as the transfer of decentralized applications from other blockchains.
In addition to the above Sei’s developers have made interesting technical breakthroughs — its Twin-Turbo consensus. This consensus mechanism is a combination of intelligent block propagation and optimistic block processing. It enables the network to achieve a high level of scalability and transaction throughput. The intelligent block propagation allows the network to optimize the transmission of blocks, reducing the amount of network traffic required. Optimistic block processing allows the network to validate transactions more efficiently, improving transaction processing times.
Another innovative feature of the Sei Network is its native order matching engine. This feature drives scalability for orderbook decentralized exchanges (DEXs) on Sei. This engine allows the network to process a large number of orders efficiently, reducing the time required to execute trades.
Finally, the Sei Network has implemented DeFi-specific parallelization, which massively increases throughput and order processing. This feature allows the network to process multiple orders simultaneously, improving the overall efficiency of the network.
Join Sei
Website: https://www.seinetwork.io/
Medium: https://medium.com/@seinetwork