Sei Network (SEI): The Fastest L1 Blockchain in the Industry

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Centralized exchanges (CEXs) offer traders speed, convenience, and robust trading features. 

However, many traders have turned away from trading large amounts on CEXs due to the security and fraud risks they pose (e.g., the FTX collapse).

The alternative, decentralized exchanges (DEXs), provides enhanced security and transparency but is often hindered by slow transaction speeds. Some DEXs lack basic trading features such as order books.

The solutions? Build the fastest Layer 1 blockchain on the market!  

Designed to provide rapid transaction speeds without sacrificing security or decentralization, Sei Network ensures that traders have access to near-instant trade processing, robust fund security, and all the trading features available on traditional exchanges.

What is Sei Network?

Founded in 2022, Sei Network boasts the fastest Layer 1 blockchain on the market. 

A blazing 380ms for transaction finality handling 12,500 transactions per second (tps).

The infrastructure of Sei has been optimized to provide traders with unparalleled speed and efficiency, with a particular focus on exchanges and trading applications. 

Designed to be highly scalable without compromising speed or security, Sei Network aims to offer a platform that caters specifically to the needs of high-frequency traders and decentralized exchanges. 

By leveraging innovative technologies such as its “Twin Turbo” consensus mechanism and parallel order execution, Sei Network ensures that transactions are processed efficiently while still maintaining network integrity and security.

How Does Sei Network Work?

The core of the Sei platform is its Built-in Order Matching Engine, Twin-Turbo consensus, and features such as Parallel Order Execution, Native Price Oracles, FBA, and more. 

Sei combines these protocols, systems, and algorithms to create a single, specialized Layer 1 blockchain.

Built-in Order Matching Engine

Beyond the functionality of a general-purpose blockchain (e.g., allowing users to transfer assets and deploy smart contracts), Sei has also created a “chain-level” order placement and matching engine that can be used to easily create an order book-based exchange. 

This allows developers to build central limit order book (CLOB) systems, commonly used by traditional centralized trading platforms. 

These systems can be more cost-effective than the automated market makers (AMMs) used by DEXs and are also more decentralized and transparent than the off-chain order books used by centralized exchanges.

Twin-Turbo Consensus

For exchanges that use order books, the speed of block times, finality, and latency are crucial for market makers. Market makers are required to update their prices after each block; therefore, shorter block times result in smaller price updates, tighter spreads, and reduced risk for market makers. 

The standard L1 chain has approximately 6-second block times, which is not optimal for order books. Sei has developed the Twin-Turbo consensus to combine optimistic block processing with intelligent block propagation, resulting in an 83% improvement in throughput. 

This improvement enables Sei to provide faster block times, lower latency, and increased finality, which is highly valuable for order book-based exchanges.

Parallel Order Execution

Sei’s approach also allows orders from independent markets to be processed at the same time, while those within the same market are still processed one after the other. 

This significantly increases Sei’s throughput, ensuring deterministic behavior among validators. Thanks to parallel order execution, Sei has conducted load tests that have demonstrated faster block times, lower latency, and higher throughput across all load levels.

Native Order-Matching

Sei’s native order-matching engine incorporates features such as single-block order execution, order bundling, frequent batch auctioning, and a native price oracle built into Layer 1, allowing exchange apps built on top to scale.

Single Block Order Execution: Allows users to place and execute orders within a single block, eliminating the need for multi-block executions as required on traditional order book platforms.Order Bundling: Allows market makers to update prices on multiple markets in a single transaction, simplifying and streamlining the trading process.Frequent Batch Auctioning: Minimizes front-running by aggregating market orders at the end of each block and clearing them at a single price. This ensures a fairer market, preventing slippage by reducing the impact of large orders on the market.Native Price Oracle: Sei’s native price oracle is integrated into its base layer, ensuring reliable price feeds from on-chain markets. 

Sei Network Use Cases

Beyond its focus on trading, Sei Network can also be utilized for building other solutions:

Financial Services: Sei Network supports decentralized finance (DeFi) platforms by providing a high-speed, low-cost infrastructure for financial transactions and the necessary infrastructure for managing digital assets.Supply Chain Management: By integrating with IoT devices, Sei Network improves logistics efficiency, allowing businesses to monitor and manage their supply chains more effectively.Protecting Intellectual Property: The network supports digital rights management for content creators, protecting their intellectual property and ensuring they receive fair compensation for their work.Identity Management: Sei Network enables secure digital identity solutions, allowing users to verify their identities without sharing sensitive information. This capability supports compliance with KYC (Know Your Customer) and AML (Anti-Money Laundering) regulations, making it easier for businesses to meet regulatory requirements. 

How to Invest in Sei Network (SEI)

You can invest in Sei Network directly by swapping any cryptocurrency for SEI through the Bake app.

If you’re looking for more projects like Sei Network, the Bake Scalability Solver Bundle allows you to invest in a share of SEI, SUI, NEAR, AVAX, SOL, INJ, and HBAR in just a couple of taps.

DISCLAIMER: Please note that the information on this blog and in any articles posted on this blog is for general information only and should not be relied upon as financial advice. Cake Pte. Ltd., Cake DeFi, UAB, and its affiliates (the “Cake Group”) are not licensed financial advisers. You may wish to approach your own independent financial advisor before making any decision to buy, sell or hold any product and/or digital assets mentioned in this blog.

Any views, opinions, references, assertions of fact and/or other statements are not necessarily the views held by the Cake Group. The Cake Group disclaims any liability whatsoever that may arise out of or in connection with such statements. Always do your own research before investing in any financial assets and consult a qualified financial advisor if necessary.

 

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The information provided in our posts or blogs are for educational and informative purposes only. We do not guarantee the accuracy, completeness or suitability of the information. We do not provide financial or investment advice. Readers should always seek professional advice before making any financial or investment decisions based on the information provided in our content. We will not be held responsible for any losses, damages or consequences that may arise from relying on the information provided in our content.

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