Sei (SEI): Optimizing Trading With the Fastest Layer 1 Blockchain

The Sei network introduces a revolutionary new solution to the issue of scaling in the hope that their infrastructure will allow effortless trading of digital assets, no matter how big the blockchain gets. Sei's claims to being the fastest Layer 1 for trading have certainly gotten them a lot of attention. Does the new project live up to all the hype and actually trump existing centralized exchanges (CEX) and decentralized exchanges (DEX), though? Here are some essential details to know.

Key Takeaways:

• Sei is a Layer 1 blockchain ecosystem on Ethereum that focuses on creating a system allowing countless users to trade at lightning-fast speeds.
• Sei’s mainnet launched on Aug 16, 2023. In celebration of this milestone, Sei has launched an additional airdrop.
• Bybit now offers the SEI/USDT Spot trading pair for trading. To celebrate this listing, Bybit will also be holding two exclusive events in which users can share a 90,000 USDT prize pool.

What Is Sei?

What Does Sei Aim to Achieve?

Sei aims to improve speed and scalability while maintaining decentralization and capital efficiency. Sei believes that trading is one of the primary functions of any blockchain, and that blockchain systems are about to rapidly expand. Therefore, they’ve set out to establish a Layer 1 solution that would accommodate massive amounts of trading. In addition to creating the next generation of scalable, centralized trading, the team also hopes to provide users with helpful infrastructure in the form of a system that streamlines all types of trading, including crypto tokens, NFTs, real-world assets and more.

How Does Sei Work?

So far, Sei has managed to generate some impressive runtimes and attracted a lot of investor attention in its funding round. There are several different components that allow Sei to achieve these exciting processing times.

Order Matching Machine

Order matching engine allows the system to identify compatible orders and rapidly build order book protocols for these matching orders. For example, if User A sells 1 ETH on exchange 1, and User B buys 1 ETH on exchange 2, Sei's order matching machine will bring together these two orders. Thanks to a deep pool of liquidity, the order-matching machine can resolve trades without major slippage issues.

Twin Turbo Consensus Mechanism

This mechanism relies on the fact that validators automatically share a lot of transaction info and store it in their mempool. Sei allows validators to use this info to reconstruct a block quickly during block proposal, so they only need to wait for the block's entire contents to arrive if they can't already find the transaction details in their mempool. This results in a 40% overall increase in throughput.

Parallel Order Execution

Sei has added parallel order execution that lets its chain process multiple transactions simultaneously. The system checks to see whether transactions are related to each other. If they're not, the system runs them side by side instead of sequentially.

Single Block Order Execution

For large numbers of trades, the network allows users to place all their orders within a single block. This speeds things up because the network doesn't need to run multi-block transactions. Instead, users can efficiently combine all relevant orders in one block and place the entire order at a single time.

Frequent Batch Auctioning

Sei's system batches multiple orders and accepts them over a discrete period of time. Nothing is published until the entire auction interval is reached, so people don't have to worry about frontrunning. Essentially, this ensures that traders who publish an order a few milliseconds after another don't end up paying artificially inflated or deflated prices.

Native Price Oracle

Sei’s built-in oracle checks and displays asset prices. As a native oracle, it works seamlessly with Sei's systems. This allows users to get accurate pricing data as quickly as possible. The oracle is just one of many ways Sei hopes to streamline the trading process.

Features of Sei

Sei hopes to become the most popular trading system for web3 development, so it offers a wide range of features. Users who trade on Sei benefit from these advantages.

The Sei Ecosystem

Sei offers a lot of convenient technology in one single ecosystem. Instead of only offering a basic blockchain for a single crypto, its platform supports multiple types of transactions. Following are some features of the Sei ecosystem.

Decentralized Finance (DeFi)

Of course, one of Sei's biggest perks is its decentralized finance (DeFi) options. The ecosystem contains trading apps and multiple exchanges through which users can buy and sell crypto. Sei also supports a variety of financial organizations that offer users lending, real estate, investments and other financial services.

GameFi

Sei encourages game developers to create projects that run on its system. These games use crypto to monetize gaming, and allow users to earn crypto based on their actions. Current games on Sei include Mystic Treasure, Shiba Shiba Doge and Fable League.

NFTs

If you're interested in buying, trading or creating non-fungible tokens, check out the Sei NFT offerings. Under the NFT tab on the Sei Ecosystem page, you’ll see several Sei-supported NFT projects, exchange apps and marketplaces.

Wallets

Sei also offers a variety of user-friendly services that make it easier to use its systems. You can pick from multiple wallets that let you store crypto securely and use it in the Sei ecosystem, as well as on other platforms.

Unparalleled Speed

Sei's unique mechanisms make it the fastest blockchain around. The ecosystem theoretically can process 20,000 transactions per second. Furthermore, it can finalize these transactions very quickly. Sei's time to finality is 500 ms, so it's theoretically one of the fastest blockchain networks in the market right now.

Security

Sei is built on Layer 1 of the Ethereum chain, so it's an incredibly secure system. Not only is Sei backed by one of the world’s most reliable blockchains, but it features several additional components of decentralization that improve security. By avoiding centralization, the network ensures that malicious actors can’t manipulate their ecosystem.

Interoperability

As an interoperable blockchain, Sei can read and write data between other blockchains. This essential tool ensures the network can fully take part in web3 development, instead of remaining its own isolated ecosystem.

Airdrop

In order to celebrate the recent launch of Sei’s mainnet, Sei has decided on an airdrop to recognize and reward early blockchain adopters from various platforms. 

To participate, users must transfer eligible digital assets into Sei. The Sei Foundation has identified active users from blockchains such as Solana, Ethereum and Arbitrum, as these platforms account for most of today's blockchain activity. 

To get started, create a Sei Wallet, such as Compass Wallet, and ensure that it's updated. Then, link your off-chain wallet to a Sei address and transfer the tokens listed on Sei's bridging interface. Remember that while the Sei Foundation provides a consistent user interface, the actual bridging is managed by separate protocols like Wormhole and Axelar.

Sei Road Map

Sei Labs has come a long way since founder and former Robinhood Software Engineer Lead Jayendra Jog started the project with Jeff Feng in early 2022. The ecosystem was originally designed to be a decentralized exchange, but it gradually expanded to include more features. In the two years that Sei has been in active development, it's raised millions through a funding round and already designed and launched its essential features.

Sei recently launched its mainnet (Pacific-1) on Aug 16, 2023. Interested users can work with the developers to create projects on Sei and see how the ecosystem functions. When the testnet was first launched, over 120 projects were created on Sei’s network.

SEI Tokenomics

Source: Sei

The SEI token is integral to Sei’s decentralized proof of stake blockchain, fulfilling multiple roles:

• Transaction Costs: SEI covers Sei blockchain transaction expenses.
• Validator Staking in DPoS: Those holding SEI can either delegate their tokens to validators or stake their SEI to operate their validator, ensuring network security.
• Decision-making: SEI holders can participate in the protocol's future governance.
• Asset Backing: SEI acts as liquidity or collateral for Sei blockchain applications.
• Fee Incentives: To prioritize their transactions, users can offer tips to validators, which can be distributed among delegating users.
• Exchange Costs: SEI is utilized as transaction fees for Sei-based exchanges.

There is a total supply of 10 billion SEI tokens, with a significant portion dedicated to the Sei community and Sei-based projects. The tokens are allocated as such:

• Ecosystem Reserve: 48%
• Foundation: 9%
• Team: 20%
• Launchpool: 3%
• Private Sale Investors: 20%

The price of SEI is currently $0.152553 (as of Aug 22, 2023). It has a market cap of $271.3 million and a 24-hour trading volume of $82.1 million. SEI reached an all-time high of $0.455153 on Aug 16, 2023 and an all-time low of $0.144527 on Aug 21, 2023. 

Where to Buy SEI

Interested in acquiring this brand-new, fairly unknown token? Bybit is happy to announce that it will be offering the SEI/USDT Spot trading pair. To get started, simply sign up for a Bybit account, fund it with cryptocurrency and navigate to the SEI/USDT Spot trading page. 

In celebration of this listing, Bybit will also be holding two exclusive events for users to share a 90,000 USDT prize pool!

From now through Aug 28, 2023, the first 1,750 new users to complete the following steps will be able to receive 20 USDT:

1. Sign up on Bybit and complete Identity Verification.
2. Accumulate a deposit volume of at least 100 USDT worth of SEI, or deposit 100 USDT and buy any amount of SEI via your first trade with your Bybit account.

However, if you’re an existing user who created an account before Aug 14, 2023, 3AM UTC, you can still earn 10 USDT by accumulating a deposit volume of at least 100 USDT worth of SEI during the event period, or deposit 100 USDT and buy at least 100 USDT worth of SEI using your Bybit account.

The second event is open to all users, from now through Aug 29, 2023, 11:59PM UTC. Simply accumulate a Spot trading volume of at least 200 USDT worth of SEI to equally split the 40,000 USDT prize pool!

Will SEI Be a Good Investment?

Since the Sei ecosystem has been created by a former Robinhood employee, and already has such fast transaction speeds, many crypto traders are looking forward to the project. People seeking to invest in a fast, reliable trading ecosystem can definitely consider investing in Sei.

However, cautious traders may want to wait a little bit before investing large amounts. Despite Sei’s claims to being the fastest blockchain, users still haven't been able to see how its technology will function in the real world as the project is still in its early stages.

Closing Thoughts

Sei hopes to provide users with the best infrastructure for the next generation of crypto trading. The ecosystem combines multiple high-tech features to create a blockchain that can process transactions with incredible speed. And thanks to the inclusion of several user-friendly features, the platform is simple and convenient to use. Sei has already become the home to many crypto and DeFi projects, and now that its mainnet has launched, you can expect to see even more exciting progress.

#Bybit #TheCryptoArk