Sei Network — Unrivaled infrastructure for the seamless exchange of digital assets.
Sei presents a core concept: the primary purpose of blockchain technology is facilitating the transfer of digital assets. Consequently, finding scalable solutions for asset exchanges becomes pivotal in propelling the widespread adoption of Web3. Sei, an open-source Layer 1 blockchain, has been specifically designed as a versatile platform for trading, meticulously optimized at every layer to provide unparalleled infrastructure for the seamless exchange of digital assets.
The concept of trading extends beyond the traditional understanding of candlestick charts, technical analysis, and derivatives. It encompasses a diverse array of assets and activities, ranging from the exchange of tokens, NFTs, real-world assets, metaverse assets, risk factors, social interactions, and much more.
Interestingly, numerous successful Web3 applications can be viewed as exchanges in essence, regardless of whether they explicitly market themselves as such. The triumph of leading Web3 applications can be attributed to their emphasis on asset exchange. Even if these applications don’t directly operate as exchanges, they often derive a significant portion of their traffic and value from asset exchanges. For instance, the value of Bitcoin lies in its ability to be exchanged.
As the Web3 ecosystem continues to expand, the significance of exchanges will grow in parallel. Trading will become an integral part of the industry, particularly as centralized exchanges face mounting regulatory pressure due to the continuous operation of digital assets. This will prompt decentralized exchanges (DEXs) to scale and adapt to meet the rising demand. The exchange of digital assets will not only remain relevant within the Web3 landscape but will also experience exponential growth as the industry evolves.
Over the past few years, it has become evident that on-chain asset exchange has found strong market demand. Exchanges encounter significant challenges when it comes to scaling on existing Layer 1 and Layer 2 infrastructures. This challenge is often referred to as the “Exchange Trilemma” since exchange applications struggle to achieve decentralization, scalability, and capital efficiency simultaneously.
To address the unique requirements of exchange applications, including speed, throughput, reliability, and preventing frontrunning, purpose-built infrastructure becomes essential. This is precisely where Sei comes into play, offering a solution to the scalability problem for DEXs. Sei enables exchange applications to scale effectively while maintaining decentralization and capital efficiency.
If Sei achieves its goals, exchanges will no longer need to compromise on decentralization. They will be able to provide the same user experience as any Web2 application while retaining the essential benefits of decentralization, such as trustless and permissionless transactions and the ability to prove ownership without the risk of censorship.
Sei, a Layer 1 blockchain, has been designed as an open-source and versatile solution to tackle the challenge of scalability in exchanges. With a strong focus on enhancing the user experience for exchange applications, Sei optimizes every layer of its infrastructure, making it the optimal choice for trading apps.
Sei stands out for its exceptional speed, boasting the fastest time to finality in the industry, with a minimum threshold of 300ms. This impressive performance is achieved through cutting-edge consensus research, leveraging Twin-Turbo consensus to reach unprecedented levels of efficiency unmatched by competitors. Additionally, Sei provides built-in features such as a matching engine and front-running prevention, giving exchanges immediate advantages. Furthermore, Sei’s automatic order bundling capability improves throughput and enhances the user experience across the board.
The decision to build Sei as a Layer 1 solution was carefully considered by the Sei Labs development team. Initially, they explored the possibility of creating Sei as a Layer 2 solution on Ethereum. However, Layer 2 rollups come with inherent drawbacks. One significant concern is the compromise in decentralization, as current Layer 2 solutions rely on centralized sequencers, which raise issues related to security, censorship resistance, and liveness. Moreover, Layer 2 throughput is limited by the blockspace of the underlying Layer 1, posing significant challenges in terms of scaling.
Having trading as a main purpose, Sei offers an appealing proposition for developers seeking a versatile Layer 1 platform. Trading plays a crucial role across various Web3 applications, including gaming, social platforms, and NFTs. Sei’s emphasis on addressing this fundamental need attracts users and encourages exploration of the diverse range of applications within the Sei ecosystem. Notably, numerous promising teams have already transitioned from prominent Layer 1 and Layer 2 platforms like Ethereum, Solana, zkSync, Polygon, and Sui to embrace the growing Sei community.
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