When it comes to blockchain innovations, some projects stand out more than others.
And one that is undoubtedly rising above the pack is Sei (SEI, Not Yet Rated).
This Layer-1 blockchain is taking a new approach. It’s optimized for trading apps in hopes of becoming a significant player in the decentralized finance sector. Sei’s goal is to focus on trading and exchange functionality.
See, DeFi platforms need two things to be successful: speed and scalability.
Transactions on DeFi platforms need to be near instantaneous. Otherwise, issues with slippage — when the value of an asset changes while you are trying to transact — become a problem.
And naturally, scalability is necessary in handling the ever-increasing demand for DeFi services.
We’ve already seen long-standing and popular blockchains, like Ethereum (ETH, “A-”) struggle with these exact issues. In fact, that’s partly why Layer-2 scaling solutions and Layer-1 blockchains like Solana (SOL, “B”) have done so well this cycle.
But Sei takes things to the next level.
Built using the Cosmos SDK and powered by Tendermint Core, Sei efficiently handles decentralized exchanges and high-volume trading platforms with impressive speed and scalability.
That includes dApps such as decentralized exchanges, or DEXes, derivatives and synthetic assets platforms and marketplaces and auction platforms.
Sei has two standout features that make its speed possible:
- Built-in Order Matching Engine: Sei eliminates the need for external applications for trade matching. It does this with the integration of its own order matching engine, resulting in faster and more efficient executions.
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Low Latency and High Throughput: Speed is crucial in trading. Sei provides low transaction latency and high throughput to ensure a smooth experience even during high traffic.
This is a game-changer for those who value quick execution on trading platforms. In short, for active crypto traders.
In addition, Sei has built fair play into its operations by adding front-running protections.
Front-running occurs when someone executes a transaction just before yours, profiting from their quicker move. Sei is designed to address this manipulation through frequent batch auctions and smart transaction ordering to ensure fair access for all traders.
To ensure security and scalability, Sei utilizes a delegated proof-of-stake (DPoS) consensus mechanism. Basically, it uses a decentralized validator network which is responsible for validating transactions.
But that’s just the beginning. There are two more benefits that are elevating Sei in this crowded market.
First is its dedication to seamless blockchain connectivity.
Sei's integration with the Cosmos (ATOM, “C”) ecosystem enables it to interact easily with other blockchains through the Inter-Blockchain Communication (IBC) protocol.
This facilitates the easy flow of assets and data between Sei and other chains and expand the range of assets available for DeFi applications.
Second is its developer-friendly approach.
Sei supports customizable smart contracts. This gives developers the flexibility to build robust applications easily. And with the CosmWasm framework in Rust, it also provides comprehensive tools and resources for efficiently deploying innovative DeFi applications.
And in recent months, Sei’s strength in the DeFi sector has been noticed.
Since mid-summer, the Sei blockchain has experienced a notable increase in total value locked. That, you may recall, is a measure of the liquidity locked on the blockchain and is a good indicator of user engagement.
As of Oct. 8, 2024, Sei’s TVL has surged to $171.8 million, marking a significant capital inflow, reflecting a growing confidence and interest in its ecosystem.
Sei also saw an increase in its derivatives trading volume, which has reached $134.19 million.
This upward trend highlights the increasing adoption and utilization of Sei's DeFi offerings.
Not only that, but it proves there is robust market activity and heightened interest in leveraging Sei's financial instruments.
In short: Sei's influence in the blockchain sector is expanding, driven by strategic developments and an engaged community.
Ranked No. 61 by market cap, Sei native token, SEI, is currently priced around 41 cents. It can be traded on Coinbase and Kraken Pro (the CEX’s premium version).
The network has raised $95.02 million, with over $10 million from public sales and $85 million from various funding rounds. This robust financial backing has led to a valuation of $800 million.
Notably, some of the most prominent backers include industry leaders such as Multicoin Capital, Coinbase Ventures and Delphi Digital, which have all played a crucial role in supporting Sei’s growth.
Sei is more than just another blockchain. It is uniquely built for trading and financial applications.
By integrating a native order-matching engine, prioritizing speed and safeguarding against front-running, Sei brings performance and fairness to decentralized trading.
And its landscape is rapidly evolving. The platforms built on Sei could play a critical role in shaping how decentralized markets operate.
That’s why next week, I’ll explore the applications built and growing on Sei further.
You can get a head start by checking out the dApps in the ecosystem here.
And I’ll be back next week to highlight the ones I believe you should pay extra attention to.
Best,
Mark Gough