What is Sei Network?
Sei Network is the first Layer 1 blockchain dedicated to order book development, created specifically for DeFi with the goal of building the best infrastructure for decentralized finance (DeFi).
Sei Network is built on top of the Cosmos SDK and uses the Limit Order Book (CLOB). Sei Network is operated as an infrastructure for decentralized finance in the Cosmos ecosystem. Since Sei Network is compatible with inter-blockchain (IBC) communication, all apps building on Cosmos can take advantage of its IBC capabilities.
The problem Sei Network wants to solve.
Before diving into the technology behind Sei, we need to clarify what Problems the blockchain solves:
Ethereum’s blockchain is not optimized for use cases for decentralized transactions. This inhibits the growth of the network.
It is not possible to build an order book model exchange on a main chain because of network congestion.
Existing L1s are too slow and cannot offer the trading experience that centralized exchanges offer.
Sei Network’s outstanding technology
By redesigning Sei from top to bottom, there have been major improvements in transaction processing and Mempool to help combat frontrunning.
Auction in regular batches: instead of executing orders one by one (as would happen on Ethereum or Solana). Sei can aggregate every order together at the end of the block and execute all market orders at the same price to help prevent pre-running.
Technical breakthrough
- Twin-Turbo consensus mechanism: propagation speed increase + block processing optimization
- Native order matching engine: driving scalability to Orderbook DEXs on Sei
- Breaking Tender mint: Sei is the fastest ending sequence at six hundred milliseconds.
- Defi-Specific parallelization: significantly increase the speed and number of blocks processed.
Experience for Developers and Users
- Native price oracles: integrated with the chain to provide a reliable and high-quality feed.
- Single-block order fulfillment: on Serum, applications need to make 1 transaction join and queue and then another transaction (in another block) to speed up order fulfillment. Sei collapses it into 1 block for faster order execution.
Decentralized transaction orders: to reduce gas costs so that MMs and Traders on applications built on Sei can send one transaction to update such information.