What is SEI? – Bitfinex Blog

07 February What is SEI?

Sei stands out as the first parallel EVM blockchain, combining Ethereum's leading development framework with Solana's high performance. Sei prioritizes reliability, security, and high throughput, and has been on the mainnet since August 2023, and claims to have been consistently finalizing blocks at 390 milliseconds, making it the fastest layer-one blockchain.

Recognizing the current limitations that layer-one blockchains impose on trading applications, such as issues of speed, scalability, and reliability, Sei aims to solve these issues by offering a specialized infrastructure. This infrastructure is designed to specifically meet the needs of trading applications to deliver seamless user experiences.

At the core of the Sei Protocol improvements are several features. For example, Twin-Turbo consensus promotes block propagation and transaction demand. This approach aims to significantly reduce the time it takes validators to receive a block, thus simplifying the consensus process.

Furthermore, Sei offers advanced parallel technologies that optimize transaction and block processing for maximum efficiency. These features make Sei a potential platform for a wide range of trading-related applications, from decentralized finance (DeFi) to non-fungible tokens (NFTs) and gaming. With its ability to process transactions simultaneously and its integration with native price oracles 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 make it the first parallel EVM blockchain. This upgrade aims to combine the benefits of Ethereum and Solana, resulting in a greatly improved execution layer that takes advantage of the tooling and mindshare around EVM. The proposal suggests using optimistic parallelism to support processing more transactions per second.

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Sei is an extremely fast, high-throughput layer-one blockchain, as well as the first parallel EVM blockchain, and serves as a potential scaling approach for the broader Ethereum ecosystem. This blockchain is designed to prioritize reliability, security and high throughput, which are essential for the efficient functioning of any type of decentralized application built on Sei.

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

By addressing the limitations of existing Layer 1 and Layer 2 infrastructures, Sei aims to solve the “triple exchange problem” faced by exchange applications, which struggle to achieve decentralization, scalability, and capital efficiency at the same time. Sei's approach is designed to meet the unique requirements of exchange applications, such as speed, throughput, and forward-run protection.

This focus makes Sei an ideal choice not only for traditional trading platforms but also for gaming economies, NFT markets, social trading apps, DeFi, and DEXs. With features such as fast time to finality, built-in parallelism, Twin-Turbo compatibility, and automatic order aggregation, Sei provides an infrastructure aimed at improving the user experience and performance of trading applications. By focusing on trading, Sei addresses the core blockchain use case, attracting a wide range of Web3 applications and developers into its ecosystem.

How does C work?

Sei consists of different software components that all work with each other to support the blockchain. Some of these components are associated with the consensus layer, and others are associated with the implementation layer.

Sei introduces the Twin-Turbo Consensus Mechanism, an advanced method to prevent spread and request transactions. This mechanism significantly reduces the time validators spend waiting for blocks to be received and processed. It optimizes the steps involved in the consensus process, including the pre-voting, pre-commitment and pre-commitment phases, resulting in faster transaction completion.

Unlike traditional methods where block processing starts after the pre-commit step, Sei starts optimistic processing for the first block proposal. This means that validators start processing the block as soon as it is received, writing the candidate state to the cache. If the block is accepted, the cached data will be committed; If it is rejected, the cache will be discarded. This method greatly speeds up transaction processing.

The main advantage of Sei is its ability to process transactions in parallel. This is achieved through advanced parallelization in both the DeliveryTx and EndBlock phases of block processing. By processing multiple transactions simultaneously, Sei improves its productivity and overall performance.

Sei integrates a native order matching engine within its infrastructure, facilitating efficient and decentralized order matching for trading applications. This engine allows DEXs to publish their own order books on-chain, and offers features such as recurring payment auctions and unified clearing prices to prevent pre-runs and ensure fair trading.

Sei's matching engine is designed to be flexible and asset-agnostic, enabling decentralized exchanges to decide how assets are represented. This feature provides versatility in dealing with different types of trading assets, including tokens and non-fungible tokens (NFTs).

Sei improves performance by aggregating client orders and aggregating orders at the chain level. This reduces the latency associated with multiple virtual machine creations and improves application throughput.

Sei maintains security and governance standards, ensuring that the blockchain operates reliably and transparently. This includes mechanisms for auditors to participate in governance decisions and maintain network integrity.

Sei V2 is tuned to change the implementation layer to support optimistic parallelism and optimal state storage. It will also introduce a new component to support smart contracts for electronic value management. These contracts will benefit from changes made to consensus and parallelism and will be able to interact with existing Cosmwasm smart contracts.

Why is Sei v2 unique?

The specialization behind Sei allows it to efficiently handle the specific requirements of trading platforms, NFT markets, DeFi infrastructure, social DApps or games, such as high throughput, low latency, and optimized order book management, which are essential for smooth and efficient trading. expertise.

By implementing parallel transaction processing, Sei aims to significantly increase transaction throughput. This is essential for trading applications that require high-performance capabilities to handle large volumes of transactions efficiently.

Sei's infrastructure is fine-tuned to support the unique needs of decentralized exchanges, such as deep liquidity and fast execution. This improvement ensures that DEX platforms built on Sei can deliver a competitive trading experience similar to centralized exchanges. Sei balances scalability with security, ensuring that the platform can handle a high volume of trading activity without compromising the integrity and security of the network.

There are four major developments in Sei v2:

1. Backwards compatible EVM:
   Sei is integrating Geth to offer full compatibility with EVM bytecode, enabling 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 from EVM-compatible blockchains without any code modifications, enhancing the building experience on Sei.
2. Optimistic parallel:
   Unlike blockchains like Solana that offer optional parallelization. Sei automatically parallelizes smart contracts, eliminating the need for developers to handle this process manually. This approach enables the chain to support parallelization effortlessly, without requiring developers to specify any dependencies, simplifying the development experience.
3. Sideb:
   SeiDB optimizes the storage layer by dividing state commit and state storage. This partitioning is designed to reduce block processing time and reduce state bloat, facilitating faster setup of new full nodes. Moreover, Sei DB prevents state bloat, enhances state read/write performance, and simplifies the synchronization process for running new nodes, enabling them to catch up to the network more efficiently. Collectively, these improvements aim to improve network performance and accessibility.
4. Six second version:
   Sei v2 improves interoperability with existing chains, ensuring seamless composability between EVM and other execution environments supported on the platform. This advancement opens up ways for senior developers from the Cosmos ecosystem to collaborate effortlessly with leading Ethereum builders, fostering a unified development environment that leverages the strengths of both ecosystems.

What is Sei Ecosystem?

The Sei ecosystem represents a comprehensive and specialized environment built on the Sei blockchain. This ecosystem includes many components and stakeholders, each contributing its own unique functionality and appeal.
● DEXs and NFT Markets – At the heart of the Sei ecosystem are decentralized exchanges that leverage Sei’s specialized trading infrastructure. These generators benefit from Sei's high throughput, low latency, and built-in order matching engine, providing a trading experience that rivals centralized platforms in terms of efficiency and user experience.
● By highlighting the diversity and creativity within the Sei ecosystem, several distinct decentralized applications have emerged as pioneers. Astroport, Compass Wallet, Fin Wallet, and Seiyans are leading the charge in redefining decentralized finance (DeFi), trading solutions, and the LGBT spirit. Pyth, Pallet Exchange, WeBump, Dagora NFT marketplace, and Flipside stand out for their innovative approaches to data provisioning, asset management, social sharing, and analytics, respectively. These creators are publishing great apps in the Sei ecosystem, showcasing the breadth and depth of possibilities in blockchain and cryptocurrency tools.

● The Sei ecosystem is constantly expanding, with an increasing number of developers working within its framework. This not only enriches the ecosystem, but also confirms Sei's commitment to supporting a wide range of blockchain-based solutions and services, reflecting the dynamic and multi-faceted nature of the Sei Network.

What is SEI token?

The SEI token plays a pivotal role within the SEI ecosystem, serving as the basic unit of value and utility that links the various components and functions of the network. Sei acts as a decentralized “proof of stake” blockchain, powered by the SEI token. The SEI token serves several functions on the network:

• Network Fees: Pay transaction fees on the Sei blockchain.
• DPoS Validator Storage: SEI holders have the option to delegate their holdings with validators or stake SEI to run their own validator to secure the network.
• Governance: SEI holders can participate in the future governance of the protocol.
• Native Collateral: SEI can be used as native asset liquidity or collateral for applications built on the Sei blockchain.
• Fee Markets: Users can tip validators to get their transaction priorities, which can be shared with users who authorize that validator.
• Trading fees: SEI can be used as a fee for exchanges built on the Sei blockchain.

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How to buy SEI on Bitfinex?

How to buy SEI with cryptocurrencies

1. Log in to your Bitfinex account or register to create an account.
2. Go to the deposit page.
3. In the Cryptocurrencies section, choose the cryptocurrency you plan to buy SEI with and create an Exchange wallet deposit address.
4. Send the crypto to the generated deposit address.
5. Once the funds arrive in your wallet, you can exchange them for SEI. Learn how to trade on Bitfinex here.

How to buy SEI with fiat currency

1. Log in to your Bitfinex account or register to create an account.
2. You need to get full verification to be able to deposit fiat currencies into your Bitfinex account. Learn about the different verification levels here.
3. On the Deposit page, under the Bank Wire menu, choose the fiat currency for your deposit. There are minimum fiat deposits on Bitfinex; Learn more here.
4. Check your registered Bitfinex email for transfer details.
5. Send money.
6. Once the funds arrive in your wallet, you can use them to purchase SEI.

We also have Bitfinex on mobile, so you can easily buy SEI token on the go. [AppStore] [Google Play]

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