What is Sei? (SEI)

Sei leverages a high-performance EVM chain that combines Solana's speed with Ethereum's developer-friendly environment, which aims to provides a more efficient platform for building and running dapps.

Sei differentiates itself through features like a built-in order matching engine to halp with order execution, the Cosmos SDK for interoperability purposes, and a mechanism to prevent front-running market manipulation.

SEI is the native token of the Sei network and is used to pay for transaction fees, and as a staking and governance asset. SEI holders can participate in the network's decision-making process by voting on proposals and contributing to the platform's development.

Who Created Sei?

Sei was founded in 2021 by Sei Labs, a company led by Jay Jog and Jeff Feng.

Jog previously worked as an engineer at Robinhood, which inspired him to create a similarly accessible and user-friendly exchange built using blockchain technology. Feng formerly worked at Goldment Sachs and Coatue, a technology-focused investment management firm.

The Sei blockchain is also supported by the Sei Foundation, an independent entity dedicated to the growth of the ecosystem.

Sei Labs has raised over $30M from investors that include Jump Crypto, Multicoin Capital, and Coinbase Ventures.

How Does Sei Work?

Sei was specifically created with the aim of optimizing trading of digital assets.

Sei's Architecture

Sei's unique architecture balances scalability and security and is designed for high trading activity and trading volume. It achieves this using:

• Parallel-transaction processing: Allows orders to execute quickly and efficiently.
• EVM Compatibility: Ethereum developers can deploy their existing dapps, tools, and infrastructure on Sei without any modifications.
• Twin-Turbo A consensus mechanism allows transactions a 400ms time to finality, enabling dapps to provide a user experience comparable to Web2 platforms.

Sei v2

Sei v2 introduces significant advancements to help the blockchain’s capabilities and developer experience:

• Backwards compatible EVM: Ethereum developers can easily transfer their existing dApps to Sei and leverage familiar tools like MetaMask wallet.
• Optimistic parallelization: Sei allows multiple smart contract execution to be run in parallel.
• SeiDB: Storage layer that optimizes block processing time, reduces bloat, and simplifies node setup.
• Enhanced interoperability: This enables collaboration between EVM and non-EVM developers.

The Sei ecosystem

Sei's quick transaction processing and optimized infrastructure make it ideal for high-performance dapps like decentralized exchanges (DEXs) and NFT marketplaces. However, its peed and scalability also allows developers to build a wide range of other dApps, including immersive gaming experiences and prediction markets.

Some examples include:

• DragonSwap – Automated Market Maker (AMM) DEX designed to be user-friendly.
• Pallet Exchange – NFT marketplace
• Silo – Liquid staking platform
• Enchanted Isles – MMORPG Adventure blockchain game.

Delegated Proof of Stake (DPoS) consensus mechanism

Sui is built using a delegated DPoS consensus mechanism where validators stake SEI to secure the network. Users can also delegate their SEI to validators and share in the staking rewards, which are paid out in SEI.

Validators can either stake SUI on their own or through the Sui Foundation, incentivizing them to align with the broader network goals and to ensure an efficient and secure platform.

How Does SEI Work?

SEI has a maximum supply of 10 billion tokens. The initial distribution of the tokens was allocated to the core team, investors, the Sei Foundation, and other ecosystem partners, and were subject to vesting schedules.

To further distribute SEI tokens and encourage participation, two airdrop batches were conducted: one for users who bridged assets from eligible blockchains and another for active users of the Sei blockchain.

The ARB cryptocurrency is mainly used for:

• Governance: SEI token holders can vote on proposals related to the development, upgrades, and overall direction of the network.
• Transaction Fees: SEI is the primary currency for transaction fees on the Seo network, including fees for DEX trading and participating in other on-chain activities
• Staking: Users can stake SEI tokens to contribute to the network's security and earn potential rewards.