What is SEI? – Bitfinex Blog

February 7 What is SEI?

Sei stands out as the first parallelized EVM blockchain that combines Ethereum’s leading development framework with Solana’s high performance. Prioritizing reliability, security, and high throughput, Sei has been live on mainnet since August 2023 and claims to be the fastest layer 1 blockchain, consistently finalizing blocks in 390ms.

Sei recognizes the limitations that current layer 1 blockchains impose on trading apps, such as speed, scalability, and stability issues, and aims to address these issues by providing specialized infrastructure. This infrastructure is built specifically to meet the needs of trading applications to provide a seamless user experience.

At the core of the Sei Protocol improvements are several features: For example, Twin-Turbo consensus improves block propagation and transaction ordering. This approach is intended to streamline the consensus process by significantly reducing the time it takes for a validator to receive a block.

Sei also introduces advanced parallelization techniques to optimize both transaction and block processing for maximum efficiency. These features make Sei a potential platform for a wide range of transaction-related applications, from decentralized finance (DeFi) to non-fungible tokens (NFTs) and gaming. With its ability to process transactions simultaneously and the integration of a base price oracle for accurate asset pricing, Sei could revolutionize the trading experience in the web3 space.

The Sei v2 upgrade proposed by Sei Labs in October 2023 will be the first parallelized EVM blockchain. This upgrade aims to combine the benefits of Ethereum and Solana to create an optimized execution layer that can benefit from shared tools and minds around the EVM. The proposal suggests using optimistic parallelism to support processing more transactions per second.

SIX

Sei is an extremely fast, high-throughput layer 1 blockchain and the first parallelized EVM blockchain, serving as a potential scaling approach for the broader Ethereum ecosystem. This blockchain is structured to prioritize reliability, security, and high throughput, which are critical for any type of DApp built on Sei to operate efficiently.

By providing a built-in order book infrastructure, Sei promises fast execution, deep liquidity, and a fully decentralized matching service.

To address the limitations of current layer 1 and layer 2 infrastructure, Sei aims to solve the “Exchange Trilemma” faced by exchange apps that struggle to achieve decentralization, scalability, and capital efficiency simultaneously. Sei’s approach is tailored to meet the unique requirements of exchange applications such as speed, throughput, and preemption prevention.

This focus makes Sei the optimal choice not only for traditional trading platforms, but also gaming economies, NFT marketplaces, social trading apps, DeFi, and DEX. With features such as fast final completion times, built-in parallelism, Twin-Turbo consensus, and automatic order bundling, Sei provides an infrastructure that aims to improve the user experience and performance of trading applications. By focusing on transactions, Sei addresses core blockchain use cases and brings a wide range of Web3 applications and developers into the ecosystem.

How does Sei work?

Sei consists of various software components that work together to support the blockchain. Some of these components are connected to the consensus layer, while others are connected to the execution layer.

Sei introduces the Twin-Turbo consensus mechanism, an advanced approach to block propagation and transaction ordering. This mechanism significantly reduces the time validators wait to receive and process blocks. Finalize transactions faster by optimizing the steps involved in the consensus process, including pre-voting, pre-commit, and commit steps.

Unlike traditional methods where block processing begins after the pre-commit phase, Sei begins optimistic processing of the first block proposal. This means that as soon as the validator receives the block, it starts processing the block and writes the candidate state to the cache. Once the block is approved, the cached data is committed. If rejected, the cache will be deleted. This approach significantly speeds up transaction processing.

Sei’s main feature is its ability to process transactions in parallel. This is achieved through advanced parallelism in both the DeliverTx and EndBlock stages of block processing. By processing multiple transactions simultaneously, Sei improves throughput and overall performance.

Sei integrates a native order matching engine within its infrastructure to facilitate efficient and decentralized order matching for trading applications. This engine allows the DEX to distribute order books at the chain level and provides features such as frequent batch auctions and uniform clearing prices to prevent preemption and ensure fair trading.

Sei’s matching engine is designed to be flexible and asset-agnostic, allowing decentralized exchanges to decide how to display an asset. This feature provides versatility in handling different types of tradable assets, including tokens and NFTs.

Sei improves performance through client order bundling and chain-level order bundling. This reduces latency associated with instantiating multiple virtual machines and improves app throughput.

Sei maintains security and governance standards to ensure that blockchains operate reliably and transparently. This includes mechanisms for validators to participate in governance decisions and maintain the integrity of the network.

Sei V2 is set to change the execution layer to support optimistic parallelization and optimized state storage. We will also be introducing new components to support EVM smart contracts. These contracts can benefit from changes to consensus and parallelization and can interact with existing Cosmwasm smart contracts.

Why is Sei v2 unique?

Sei’s specialization allows us to efficiently address the specific needs of trading platforms, NFT marketplaces, DeFi infrastructure, social or gaming DApps, such as high throughput, low latency and optimized order book management that are critical for smooth and efficient trading. . experience.

Sei aims to dramatically increase transaction throughput by implementing parallel transaction processing. This is essential for trading applications that require high-performance capabilities to efficiently process large volumes of transactions.

Sei’s infrastructure is fine-tuned to support the unique requirements of decentralized exchanges, such as deep liquidity and fast execution. These optimizations allow DEXs built on Sei to deliver a competitive trading experience comparable to centralized exchanges. Sei balances scalability and security, ensuring the platform can handle high volumes of transaction activity without compromising the integrity and security of the network.

Sei v2 has four major improvements:

1. Backwards compatible EVMs:
   Sei integrates with Geth to provide full EVM bytecode compatibility, allowing developers to leverage a wide range of Ethereum tools such as MetaMask, Foundry, Remix, and Hardhat. With Sei v2, developers can now deploy audited smart contracts on EVM-compatible blockchains without any code modifications, further enhancing the Sei deployment experience.
2. Optimistic parallelization:
   This is different from blockchains like Solana that offer optional parallelization. Sei automatically parallelizes smart contracts, eliminating the need for developers to handle this process manually. This approach simplifies the development experience by allowing developers to easily support parallelization across chains without having to define dependencies.
3. SayDB:
   SeiDB improves the storage layer by splitting state commit and state storage. This split is designed to reduce block processing time and reduce state bloat, promoting faster setup for new full nodes. Sei DB also prevents state bloat, improves state read/write performance, and simplifies the synchronization process for running new nodes, allowing them to keep up with the network more efficiently. These enhancements aim to optimize overall network performance and accessibility.
4. Six v2:
   Sei v2 improves interoperability with existing chains, ensuring seamless composability between the EVM and other execution environments supported on the platform. This advancement paves the way for top developers in the Cosmos ecosystem to easily collaborate with leading Ethereum builders, creating an integrated development environment that leverages the strengths of both platforms.

What is the Sei Ecosystem?

The Sei Ecosystem represents a comprehensive and specialized environment built around the Sei blockchain. This ecosystem includes a variety of components and stakeholders, each contributing unique functionality and appeal.
● DEX and NFT Marketplace – At the core of the Sei ecosystem is a decentralized exchange that leverages Sei’s professional trading infrastructure. These builders leverage the benefits of Sei’s high throughput, low latency, and built-in order matching engine to deliver a trading experience that rivals centralized platforms in terms of efficiency and user experience.
● Several major dApps have emerged as pioneers, emphasizing diversity and creativity within the Sei ecosystem. Astroport, Compass Wallet, Fin Wallet, and Seiyans are at the forefront of redefining decentralized finance (DeFi), trading solutions, and the spirit of the meme community. Pyth, Pallet Exchange, WeBump, Dagora NFT Marketplace, and Flipside each stand out for their innovative approaches in data delivery, asset management, social engagement, and analytics. These builders are deploying amazing applications on the Sei ecosystem, demonstrating the breadth and depth of blockchain and crypto utilities.

● The Sei ecosystem continues to expand and the number of developers building within the framework continues to grow. This not only enriches the ecosystem, but also highlights Sei’s commitment to supporting a variety of blockchain-based solutions and services, reflecting the dynamic and multifaceted nature of the Sei Network.

What are SEI tokens?

The SEI token plays a pivotal role within the SEI ecosystem, serving as the fundamental unit of value and utility that interconnects the various components and functions of the network. Sei operates as a decentralized “proof of stake” blockchain based on the SEI token. SEI tokens provide several functions on the network.

• Network fees: Pay transaction fees on the Sei blockchain.
• DPoS Validator Staking: SEI holders can delegate their stake to validators or stake SEI to run their own validators to secure the network.
• Governance: SEI holders can participate in future protocol governance.
• Primary Collateral: SEI can be used as primary asset liquidity or collateral for applications built on the Sei blockchain.
• Fee Market: Users can prioritize transactions by paying tips to validators, which can be shared with users delegating to that validator.
• Transaction fees: SEI can be used as a fee for exchanges built on the Sei blockchain.

SEI Tokenomics

How to buy SEI on Bitfinex?

How to Buy SEI with Cryptocurrency

1. Create an account by logging in or signing up for a Bitfinex account.
2. Go to the deposit page.
3. In the Cryptocurrency section, select the cryptocurrency you want to purchase SEI for and create a deposit address in your Exchange wallet.
4. Send cryptocurrency to the generated deposit address.
5. Once your funds arrive in your wallet, you can trade with SEI. Learn how to trade on Bitfinex here.

How to buy SEI with fiat money

1. Create an account by logging in or signing up for a Bitfinex account.
2. Depositing fiat currency into your Bitfinex account requires full verification. Learn about the different certification levels here.
3. On the Deposits page, select the fiat currency for your deposit from the Bank Transfer menu. Bitfinex has a minimum amount for fiat deposits. Learn more here.
4. Please check your registered email with Bitfinex for transfer details.
5. Send funds.
6. Once the funds arrive in your wallet, you can use them to purchase SEI.

Plus, you have Bitfinex on your mobile, so you can easily buy SEI currency on the go. (App Store) (Google Play)

SEI Community Channel

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