Blockchains / Sei
SEI

Sei

SEI

High-performance Layer 1 optimized for trading and exchange applications

Layer 1 tradingdeficosmoshigh-performance
Launched
2023
Founder
Jeffrey Feng, Jay Jog
Website
sei.io
Primitives
3

Technology Stack

proof of stake evm smart contracts

Introduction to Sei

Sei positions itself as the fastest Layer 1 blockchain, purpose-built for trading and exchange applications. Launched in 2023, Sei combines Cosmos SDK foundations with novel optimizations specifically designed to support orderbook exchanges, trading protocols, and DeFi applications requiring high throughput and low latency.

Built by Jeffrey Feng and Jay Jog, both with traditional finance backgrounds, Sei targets a specific problem: existing blockchains aren’t optimized for trading. The chain introduces innovations like parallel transaction processing and a native order matching engine to create infrastructure better suited for exchange-style applications through smart contracts.

Trading-Optimized Architecture

The Core Innovation

Purpose-built for trading:

  • Parallel transaction execution
  • Twin-turbo consensus
  • Native order matching engine
  • Optimistic block processing

Why Trading Needs Special Infrastructure

Current blockchain limitations:

  • Sequential transaction processing
  • High latency for price-sensitive trades
  • Front-running vulnerabilities
  • Inefficient orderbook matching

Sei’s Solutions

Technical innovations:

  • Market-based parallelization
  • Frequent batch auctions
  • Price oracle integration
  • MEV mitigation

How Sei Works

Twin-Turbo Consensus

Consensus improvements:

  • Optimistic block processing
  • Intelligent block propagation
  • Reduced finality time
  • Higher throughput

Parallel Transaction Processing

Market-based parallelization:

  • Transactions touching different markets process in parallel
  • Independent state updates
  • Increased throughput
  • Reduced latency

Native Order Matching

Built-in exchange infrastructure:

  • On-chain orderbook engine
  • Frequent batch auctions
  • Fair price discovery
  • Front-running resistance

Technical Specifications

MetricValue
Block Time390 milliseconds
Finality~390 ms
ConsensusTwin-Turbo (Tendermint)
TPS12,500+
EVM CompatibleYes (Sei V2)
Built OnCosmos SDK

Sei V2: EVM Compatibility

Evolution

Adding EVM support:

Parallelized EVM

Unique approach:

  • Parallel EVM execution
  • Optimistic concurrency control
  • State conflict resolution
  • Performance maintained

Migration Benefits

For developers:

  • Existing dApps portable
  • Familiar tooling
  • Access to Sei optimizations
  • Best of both worlds

The SEI Token

Utility

SEI serves multiple purposes:

  • Transaction Fees: Network usage
  • Staking: Network security
  • Governance: Protocol decisions
  • Trading Fees: Exchange operations

Tokenomics

Distribution:

  • Total Supply: 10 billion SEI
  • Circulating at launch: 1.8 billion
  • Ecosystem development: 51%
  • Foundation: 9%
  • Team: 20%
  • Investors: 20%

Staking

Network security:

Ecosystem Development

DeFi Protocols

Trading-focused DeFi:

  • DEXs leveraging native orderbook
  • Derivatives platforms
  • Lending protocols
  • Yield strategies

Target Applications

Ideal use cases:

  • Orderbook exchanges
  • Derivatives trading
  • NFT marketplaces
  • High-frequency DeFi

Developer Incentives

Ecosystem programs:

  • Grants program
  • Hackathons
  • Technical support
  • Partnership opportunities

Competition and Positioning

vs. General Purpose L1s

AspectSeiGeneral L1s
FocusTradingAll purposes
OrderbookNativeSmart contract
ParallelizationMarket-basedLimited
Finality390ms1-12 seconds

vs. Other Trading Chains

ChainFocusApproach
SeiTradingParallel + native orderbook
dYdXPerpetualsApp-specific chain
InjectiveDeFiCosmos-based

Differentiation

Key advantages:

  • Fastest finality claims
  • Native trading infrastructure
  • Parallel processing
  • EVM compatibility (V2)

Challenges and Criticism

New Chain Risk

Early stage concerns:

  • Unproven at scale
  • Limited battle testing
  • Ecosystem development needed
  • Adoption uncertain

Competition

Crowded market:

  • Established L1s improving
  • App-specific chains rising
  • L2s for trading
  • Developer attention split

Adoption Dependency

Business model:

  • Needs trading volume
  • Requires protocol migration
  • User acquisition critical
  • Chicken-and-egg problem

Recent Developments

Sei V2 Launch

EVM integration:

  • Parallelized EVM live
  • Solidity support
  • Cross-VM composability
  • Ecosystem expansion

Ecosystem Growth

Adoption progress:

  • New protocol launches
  • Trading volume growth
  • Developer onboarding
  • Partnership announcements

Performance Milestones

Technical achievements:

  • Testnet throughput records
  • Mainnet stability
  • Finality consistency
  • User experience improvements

Future Roadmap

Development priorities:

  • Performance: Further optimizations
  • EVM Ecosystem: More Solidity dApps
  • Trading Features: Enhanced native features
  • Interoperability: IBC and bridges
  • Institutional: Enterprise features

Conclusion

Sei represents a focused bet on trading-optimized blockchain infrastructure, combining Cosmos foundations with novel innovations targeting exchange applications. The claim of fastest finality and native orderbook matching creates genuine technical differentiation.

The V2 upgrade bringing EVM compatibility significantly expands the potential developer and application base, making Sei accessible to the large Ethereum developer community while maintaining trading optimizations.

For trading protocol developers seeking purpose-built infrastructure and for DeFi users prioritizing speed and execution quality, Sei offers specialized capabilities that general-purpose chains cannot match. Success depends on attracting sufficient trading volume and protocols to justify the specialized approach.