ABOUT SEI NETWORK

 

Sei Network: Scaling Decentralized Exchanges in Web3

Sei Network is a new layer 1 blockchain project that aims to revolutionize the DeFi ecosystem by providing a specialized infrastructure for decentralized exchanges (DEXes). Built on the Cosmos SDK and Tendermint Core, which are powerful tools for building Web3 apps, Sei Network is designed to be a sector-focused project, moving away from conventional blockchain designs available in the market.

One of the major challenges faced by DEXes is the lack of foundational tools to make them scale. DEXes require a different set of operating systems than centralized exchanges and other Web3-based platforms, making it difficult for them to function at an optimal pace and allow for innovations. Sei Network was launched to address these challenges and bring scalability and efficiency to all aspects of DEXes.

Sei Network’s Native Order Matching Engine is a standout feature that makes it easier for several projects to build and scale their DEXes using a native order book. An order book is a list of orders an exchange uses to record what buyers and sellers are interested in for a particular financial asset. Sei Network’s on-chain order matching engine, which can process 22,000 orders per second, allows it to serve as a decentralized NASDAQ. This feature also provides ease for developers to connect dApps to shared liquidity systems on the Sei Network.

In addition to the Native Order Matching Engine, Sei Network also features a Price Oracle, a price data feed that provides information about the prices of several assets for dApps on the Sei Network to access them. Sei Network’s integration with Tendermint, an open-source software that allows blockchains to be launched in any language, brings it to a finality of 600ms, making it one of the fastest chains in Web3.

Sei Network is designed as an anti-front-running system, which is a practice in which owners or insiders of an exchange perform trades based on exclusive insider information about customers’ orders. To lower the cost of a transaction, Sei Network implements multiple levels of order bundling, where market makers and pro traders using apps on the Sei Network can submit one transaction to update multiple markets.

Sei Network uses a Twin-Turbo Consensus, which enhances the latency and throughput of the network. This consensus system reduces the time it takes for a validator to receive a block. Because it is built on Cosmos, it uses the Inter-Blockchain Communication protocol (IBC). IBC creates a cross-communication system between independent blockchains to allow the transfer of tokens, data, and other vital assets in the blockchain ecosystem.

The Sei Network team is made up of experienced professionals from various fields and organizations such as Robinhood, Databricks, Airbnb, and Goldman Sachs. The team includes two co-founders, Jeffrey Feng, a financial analyst, and Jayendra Jog, a software engineer, who are alumni of the University of California.

Sei Network has attracted several projects such as Axelar, Satori, PharaohFi, Vortex, VortexProtocol, UXD, and Nitro, with a total testnet transaction volume of over 4.5 million and a testnet user base of more than 250,000. In August 2022, Sei Labs had a seed round where the team raised $5 million led by Multicoin Capital. The seed round also had Coinbase Ventures, GSR, Flow Traders, Hudson River Trading, Delphi Digital, and Tangent as part of the investors.

Also Sei Labs has raised additional $30 million in two strategic funding rounds from top investors, including Jump, Distributed Global, Multicoin, Asymmetric, Flow Traders, Hypersphere, and Bixin Ventures.Most recently, Sei Labs announced an additional $50 million commitment to the Sei eco fund, thus elevating the total fund raised so far to a whooping $120million!

Additionally, Sei Labs now has a huge community with over 3.6 million unique testnet users and more than 120 teams deploying on Sei!

In conclusion, Sei Network aims to provide the best infrastructure to scale decentralized exchanges and other DeFi products in Web3. Although it has not gone live, several investors and projects are betting on it to transform the world of DEXes.