Sei Network Unpacked – Testing the New Layer 1 Before Its Token Drop
Sei Network will use a networkwide order-book exchange to provide the base layer for its DeFi ecosystem.
Key TakeawaysSei Network, a Layer-1 blockchain that focuses on DeFi and is built on Cosmos, is an upcoming DeFi-focused Layer-1 network.
It hopes to be a “decentralized Nasdaq” and offer transaction execution speeds of 300-400 milliseconds.
When the network goes live on mainnet, Testnet users will be able to receive SEI tokens in return for their contributions.
Share this article. Sei Network is a Layer 1 blockchain that focuses on DeFi and is built on Cosmos. It will have basic primitives like an order-matching engine, unified liquidity model, and a unified liquidity system. This will allow for faster and easier application development than with general-purpose blockchains like Ethereum. Multicoin Capital and Coinbase Ventures, Delphi Digital and GSR Ventures are backing the project. Similar plans were made by Solana with its flagship DeFi protocol, Serum. The Solana-based orderbook exchange provides liquidity as well as token swaps for DeFi applications within the Solana ecosystem. Serum is used by projects like Mango Markets and Zeta. It also provides token swaps and liquidity for other DeFi applications in the Solana ecosystem. However, its usage has fallen due to the ongoing crypto winter and frequent outages and hacks. The total value of Serum fell significantly in 2022 (Source Defi Llama). However, Sei Network will be different from Solana in many ways. It will only facilitate DeFi transactions. This means that other applications, such as NFTs or gaming, won’t clog it. Sei’s team uses the proven Cosmos Software Development Kit instead of a new consensus mechanism to increase throughput. This should provide more stability and lower downtime than Solana. Sei’s Semi-DecentralizationTo achieve the transaction speeds required to run a decentralized equivalent of New York’s number two stock exchange, Sei needs to offer swift execution times in the order of microseconds (1 second = 10^6 us). This requires some compromises in decentralization. Sei will have a small number of validators. Sei plans to launch on mainnet with only 50 validators, making it one the most central blockchains in the world. It will launch with just 50 validators on mainnet, which is compared to BNB Chain, a Binance-run network that has 41 validators. However, Sei will be the fastest CosmosSDK chain if it achieves its goal of 300-400 millisecond transactions. The team has modified the Cosmos SDK design to provide execution speeds of two-to three seconds. They also implemented parallel order execution and optimistic block production. Additionally, applications that wish to build on Sei’s ecosystem must be approved by governance. This could prevent OlympusDAO-style projects from appearing on Sei. It will however create a more efficient environment for ecosystem managers. The launch of the Sei Network mainnet is scheduled for the end 2022. However, it is expected that the founding team will make all governance decisions. The launch could be delayed, as is common with development schedules. Since July 2022, the team has been running an incentivized testing network to begin community development initiatives. According to the Sei team, testnet contributors will be rewarded with 1% of total SEI token supply. The early missions such as setting up a Sei validateator node require 32GB RAM. Some of the more recent missions, like testing Sei’s first futures-trading platform, are easier to access. Our testnet guide can be found here to help you get involved in the SEI token airdrop via SIMETRI. Although there are some centralizing elements, these are compromises that ensure stability, speed and high throughput. It remains to see if Sei will live up its performance expectations once it launches. Regardless, Sei’s greatest challenge will be to create an active DeFi ecosystem that isn’t tied to Ethereum in a grueling bear markets. Share this article Decentral Media, Inc. does not act as an investment advisor. We do not provide personalized investment advice or any other financial advice. This website’s information is subject to change at any time. The information on this website could become obsolete or incorrect. You may not be able to update any information that is outdated, incomplete or inaccurate. We also reserve the right to change any information that is incorrect, incomplete or outdated. If you need investment advice about an ICO, IEO or other investment, we strongly recommend that you consult a licensed financial advisor or other qualified financial professional. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.See full terms and conditions.Recommended News