Sei Network: A High-Speed Public Chain Designed for Trading

Recently, the cryptocurrency market has suffered a heavy blow, with major asset prices plummeting. This event highlights the importance of developing decentralized exchanges. Sei Network, as a new public chain based on Cosmos, aims to become the preferred platform for decentralized finance, NFTs, and gaming transactions. Sei has advantages such as a built-in order book, fast execution, and deep liquidity, providing a safer, more transparent, and efficient infrastructure for decentralized exchanges.

Sei's Unique Positioning

Traditional Layer 1 public chains can generally be divided into two categories: general-purpose and application-specific. Sei has found a balance between the two, becoming a public chain focused on trading. Compared to general-purpose public chains, Sei has optimized various technical layers to provide the best trading infrastructure. In comparison to application-specific chains, Sei can support multiple trading applications, offering greater flexibility and customizability.

The goal of Sei is to solve the scalability issues of existing on-chain exchanges and become the fastest Layer 1 public chain. To achieve this, Sei has implemented several key improvements:

1. Twin Turbo consensus mechanism: Achieves a final confirmation time of 300 milliseconds, which is 10 times faster than some mainstream public chains.

2. Composable architecture order matching module: Applications on Sei have synchronous composability, and can also achieve asynchronous composability with other ecosystems through cross-chain bridges.

3. Market-based parallelization technology: increases throughput by 5-10 times, supporting batch processing of orders.

4. Liquidity Management System: Provides deep liquidity and efficient trading for various applications.

The emergence of Sei fills the gap for dedicated public chains for trading, bringing new opportunities for the development of blockchain technology and Web3.

Technical Advantages of Sei

Order Matching Engine

Sei has created an order placement and matching engine at the chain level. Developers can directly use this engine to build order book-based exchanges without starting from scratch. This greatly improves development efficiency and cost-effectiveness.

The Sei order matching engine offers a limit order function similar to that of centralized exchanges, providing higher liquidity and better price discovery mechanisms.

Parallel Order Execution

Sei can handle orders from different markets simultaneously, significantly improving throughput. This optimization effect is particularly evident under high load conditions. Test data shows that when processing a large number of orders, parallel execution can reduce block time from 1.33 seconds to 0.81 seconds, latency from 371 milliseconds to 48 milliseconds, and throughput from 7500 to 12200 orders per second.

Twin-Turbo Consensus Mechanism

The Twin-Turbo consensus mechanism consists of two key components:

1. Smart Block Propagation: Validators can reconstruct blocks from the local memory pool, reducing the time waiting to receive blocks.

2. Optimistic Block Processing: Skip the pre-vote and pre-submit steps to accelerate block validation and voting speed.

Through this mechanism, Sei has shortened the block confirmation time to 500 milliseconds, achieving a throughput of 20,000 transactions per second.

Other feature improvements

1. Single block order execution: Completing order placement and execution within a single block.

2. Order Bundling: Update multiple market prices in a single transaction.

3. Frequent batch auctions: Summarize orders at the end of the block to reduce front-running.

4. Local Price Oracle: Ensuring reliable on-chain price information.

Sei Network Ecosystem Development

Sei has secured a total of $120 million in ecosystem investment funds, supported by several well-known institutions. Currently, the Sei ecosystem has attracted over 150 teams to develop projects across various fields, including infrastructure, exchanges, and cross-chain.

Main cooperation projects include:

• Decentralized exchanges: Sushiswap, Satori, etc.
• Infrastructure: White Whale, Kado, etc.
• Wallets: Keplr, Cosmoscan, etc.
• Cross-chain bridges: Gravity Bridge, Axelar, etc.

The addition of these projects has injected new vitality into the Sei ecosystem and provided users with more choices.

Summary

Sei Network is committed to becoming a leading public blockchain for decentralized financial infrastructure. Through multiple technological innovations, Sei provides high-performance and scalable infrastructure for trading applications and exchanges. As a Layer 1 public blockchain focused on trading, Sei is becoming the preferred platform for traders, developers, and the gaming community.