Sei Network: A high-performance public chain designed for trading

In the past month, the SEC's lawsuit against a certain trading platform has become the most关注ed event in the crypto industry. This event not only led to a significant drop in the prices of most crypto assets but also triggered a crisis of trust among users towards centralized exchanges (CEX), further highlighting the necessity of developing decentralized exchanges (DEX). Against this backdrop, Sei Network has emerged as a Layer 1 public blockchain focused on trading.

The Sei Network is built on the Cosmos SDK and aims to become the preferred underlying infrastructure for DEX in the fields of DeFi, NFT, and GameFi. The network features built-in order book infrastructure, with extremely fast execution speeds, deep liquidity, and fully decentralized matching services, providing a safer, more transparent, efficient, and reliable network environment for DEX.

Technical Innovations of Sei Network

Unlike traditional general-purpose public chains and specific application chains, Sei Network has found a balance between the two. It optimizes various layers of the tech stack to provide the best trading infrastructure while maintaining support for various trading applications.

Sei Network has introduced multiple technological innovations to enhance the trading experience:

1. Twin Turbo consensus mechanism: Achieved a finality time of 300 milliseconds.

2. Composable architecture order matching module: Enables dApps on Sei to have synchronous composability.

3. Market-based parallelization technology: increases throughput by 5-10 times.

4. Order Batch Processing: Simplified the process of updating multiple orders across exchanges.

5. Efficient liquidity management system: Providing deeper liquidity and cost-effectiveness for DeFi, GameFi, and NFT applications.

These innovations make the Sei Network an outstandingly performing and flexibly customizable trading infrastructure, capable of meeting the needs of different types of trading applications.

Core Technological Advantages of the Sei Network

Order Matching Engine

Sei has created an order issuance and matching engine at the chain level, which is one of its core functionalities. Developers can directly use this engine to create order book-based exchanges without having to build an order book from scratch, significantly improving development efficiency and reducing costs.

The Sei order matching engine provides a limit order function similar to traditional centralized exchanges, allowing the creation of order groups at different prices and updating asset values based on execution status. This order book-based design helps to provide higher liquidity and a more accurate price discovery mechanism.

parallel order execution

Sei employs an innovative parallel order execution mechanism. It is capable of processing orders within the same market in sequence while concurrently handling orders from different markets. This approach significantly increases the system's throughput while ensuring behavioral consistency among validators.

According to the internal testing data of Sei, under high load conditions (10,000 orders/block, 20 different contracts), parallel execution can reduce block time from 1.33 seconds to 0.81 seconds, latency from 371 milliseconds to 48 milliseconds, and throughput from 7,500 orders/second to 12,200 orders/second. The optimization effect becomes even more significant as the load increases.

Twin-Turbo consensus mechanism

The Twin-Turbo consensus mechanism of Sei has optimized and upgraded the ABCI of Cosmos, making each step of the consensus programmable. This mechanism includes two key components: intelligent block propagation and optimistic block processing.

Smart block propagation improves processing speed by sending compressed block proposals (containing only transaction hashes instead of full content). Validators can reconstruct blocks from the local memory pool, significantly reducing the time spent waiting to receive blocks.

Optimistic block processing skips the pre-voting and pre-submission steps, allowing validators to directly call the block finalization function, which speeds up block validation and voting. Validators can also process the first block proposals at any height in parallel, writing state candidates to a cache, further enhancing the system's throughput.

Through the Twin-Turbo consensus mechanism, Sei has reduced the block confirmation time from 6 seconds on the Cosmos chain to 500 milliseconds, achieving the fastest final block confirmation time in the network and reaching a throughput of 20,000 transactions per second.

In addition, Sei has introduced other optimization features such as single-block order execution, order bundling, frequent batch auctions, and local price oracles, further enhancing the efficiency and scalability of the system.

The Ecological Development of Sei Network

Despite the mainnet not yet being launched, Sei Network has already attracted the attention of numerous projects and investors. Currently, over 150 teams are developing projects on Sei, covering various fields such as infrastructure, DEX, MEV, cross-chain, NFT, and collateral lending.

In terms of funding support, Sei has secured a total of $120 million in ecological investment funds, including a $20 million fund from a certain trading platform, a $50 million fund from Foresight Ventures and a certain trading platform, and a $50 million investment from institutions such as Multicoin Capital, Delphi Digital, and Hypersphere.

Key projects in the Sei ecosystem include:

• DEX: A well-known DEX has launched a decentralized perpetual futures exchange on Sei; Satori has provided an on-chain evolution product protocol.
• Infrastructure: White Whale provides cross-chain liquidity protocols; Kado supports basic setup and non-custodial wallet transfers.
• Wallet: Keplr supports Sei tokens and applications; Cosmoscan provides a block explorer for Sei.
• Cross-chain bridge: Gravity Bridge supports asset transfers between Cosmos and Ethereum; Axelar provides multi-chain liquidity services.

The addition of these partners and projects has injected new vitality into the Sei ecosystem, providing users with more choices and services.

As a high-performance public chain focused on trading, Sei Network is bringing innovative infrastructure support to the decentralized finance sector. With its unique technological advantages and an ever-expanding ecosystem, Sei is expected to become an important underlying platform in areas such as DeFi, NFT, and GameFi, promoting further development of decentralized trading.