Sei is an open-source Layer 1 blockchain that specializes in trading applications. It positions itself as the fastest L1 blockchain on the market, with optimized infrastructure for speed and efficiency. Sei addresses the challenges faced by decentralized exchanges (DEXs) in terms of scalability on Layer 1, aiming to be a leading solution for various trading applications, including DeFi DEXes, NFT marketplaces, and gaming DEXes.

How does $SEI work?

Sei operates with the Twin Turbo consensus mechanism, integrating intelligent block propagation and optimistic block processing to achieve faster block times, lower latency, and increased finality. Leveraging market-based parallelization, which sets it apart from other high-performance ecosystems like Solana and Aptos, Sei enhances throughput. The network features a native order-matching engine in Layer 1, enabling efficient scaling for exchange apps. Additionally, Sei implements parallel order execution for independent markets while maintaining deterministic behavior. The inclusion of a native price oracle ensures reliable price feeds from on-chain markets, and the network supports order batching to prevent frontrunning. Fundamentally, Sei positions itself as a scalable and efficient Layer 1 blockchain for financial applications, with a particular focus on trading.

$SEI tokenomics and risks

Sei launched its native token, $SEI, and reported a trading volume exceeding $1 billion post-launch. The project conducted funding rounds, securing a total of $80 million from investors such as Multicoin Capital, Coinbase Ventures, and Foresight Ventures, resulting in an $800 million valuation. While the specific utility of $SEI within the Sei network is not explicitly detailed, caution is advised due to the early stage of development. Common risks associated with the crypto space, including market volatility, regulatory uncertainties, and potential technical vulnerabilities, should be considered.