Sei

Sei is an open-source, permissionless Layer 1 blockchain designed for the exchange of digital assets. Developed by Sei Labs, Sei launched its mainnet beta in August 2023 with the goal of creating optimized infrastructure tailored for high-performance trading applications in Web3.

• Overview
• Architecture
• Consensus
• Block Propagation
• Optimistic Block Processing
• Parallelization
• Order Matching
• Smart Contracts
• Ethereum Virtual Machine
• CosmWasm
• Interoperability
• Functionality
• Trading Infrastructure
• Token Support
• Bridging
• Oracles
• Economics
• Token
• Distribution
• Staking
• Development
• SDK and Tooling
• Applications
• Developer Community
• Governance
• Overview
• Consensus Upgrades

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Overview

The core innovation behind Sei is its chain-level optimizations such as parallel processing, instant block finality, and mechanisms for efficient block propagation that aim to minimize latency and maximize throughput. At a protocol level, Sei introduces novel approaches like Twin-Turbo consensus, market-based parallelization, and a native order matching engine to directly address the limitations that decentralized exchanges face on other layer 1 blockchains.

By focusing on solving the exchange scalability problem, Sei's architecture provides a foundation for trading applications to scale and reach mass adoption. Since launching, Sei has demonstrated stability in consistently finalizing blocks at 390ms, making it the fastest chain with a lower bound of 300ms to finality. Early data shows Sei sustaining activity upwards of 45 TPS.

Architecture

Sei's technical architecture employs innovations at the consensus and execution layers to achieve a high performance optimized for trading applications.

Consensus

Sei employs an innovative consensus approach called Twin Turbo Consensus to achieve fast block times and transaction finality. This mechanism introduces optimizations at both the block propagation and block processing layers.

Block Propagation

Twin Turbo Consensus propagates transactions themselves ahead of full blocks using intelligent gossip between nodes. This ensures validators have transactions in their mempools ready to process proposed blocks faster.

The actual block contents are then reconstructed from the transaction identifiers and assembled block parts transmitted in the background. By parallelizing transaction dissemination, this technique reduces the total time validators wait to receive blocks.

Optimistic Block Processing

Additionally, Twin Turbo Consensus uses optimistic block processing where nodes speculatively execute transactions in proposed blocks before consensus finalizes them.

If the optimistic block gets ratified, the preprocessed state transitions are committed instantly. Otherwise they are discarded and the next block is optimistically processed.

This concurrent validation pipeline adds additional concurrency that hides consensus latency and delivers exceptionally low confirmation times.

Together, Twin Turbo Consensus innovations provide Sei market-leading throughput and responsiveness optimized for high frequency trading of digital assets.

Parallelization

For scalability, Sei leverages market-based parallel transaction processing. At the protocol level, non-conflicting transactions are processed in parallel during block execution. This increases throughput compared to sequential execution.

Order Matching

Decentralized exchanges building on Sei can leverage a native order book and matching engine offered at the base layer. This engine handles order management, frequent batch auctions, and settlement automation.

Smart Contracts

Sei supports multiple virtual machines like the Ethereum VM (EVM) and CosmWasm to execute transaction logic. Transactions across environments can interact, enabling composability.

Ethereum Virtual Machine

The Sei v2 upgrade introduces an EVM to run Solidity smart contracts on Sei with complete bytecode compatibility with Ethereum. This allows developers to deploy audited Ethereum contracts without changes.

The EVM implementation builds on the modular Geth client. Sei nodes can parallelize EVM execution using optimistic concurrency control.

CosmWasm

Sei also supports CosmWasm - a WASM-targeted smart contract platform. CosmWasm contracts are typically written in Rust and compiled to WASM bytecode.

Interoperability

The various VMs can seamlessly interoperate on Sei. For example, an NFT minted by a CosmWasm contract can be traded trustlessly by an EVM decentralized exchange. This composability unlocks innovation.

Functionality

Sei offers a flexible and extensible platform for building decentralized applications focused on trading digital assets.

Trading Infrastructure

The Sei protocol is optimized at every layer to serve as ideal infrastructure for exchanges and trading platforms. Developers can build high-performance DeFi, NFT, gaming, metaverse, and social trading apps on Sei.

Token Support

Sei has native support for fungible tokens via TokenFactory and non-fungible tokens through standards like CW721. These make it easy to represents assets on-chain.

Bridging

Protocols like Wormhole and Axelar enable seamless transfers of tokens in and out of Sei from external blockchains. This provides interoperability.

Oracles

Validators act as decentralized price oracles natively on Sei. Sub-second voting windows deliver fresh, manipulation-resistant asset pricing.

Economics

The $SEI token and an innovative staking model underpin Sei's decentralized economics.

Token

$SEI is the native token of the Sei blockchain. It is used to pay transaction fees, secure the network via staking, and govern protocol upgrades.

Distribution

The initial supply of 10 billion $SEI is predominantly allocated to ecosystem initiatives, staking rewards, and the community. This enables decentralization.

Staking

$SEI holders can stake to validators to take part in block production and earn staking rewards. This model secures the Sei network.

Development

Sei offers developers flexible tools and an incentive program to build applications.

SDK and Tooling

Native support for the EVM in the v2 upgrade allows reuse of existing Ethereum devkits, frameworks, and wallets like Metamask.

Applications

Innovative NFT, gaming, DeFi, and social trading apps are being built natively on Sei by its community.

Developer Community

The Sei Foundation provides grants and incentives to attract builders, validators, and ecosystem contributors to the platform.

Governance

Sei employs an on-chain governance model where $SEI token holders can steer protocol upgrades.

Overview

All changes to Sei parameters, economics, and upgrades are subject to governance proposals and voting by stakeholders backing their preferences with $SEI tokens.

Consensus Upgrades

For example, the v2 parallelized EVM proposal will be raised as a governance proposal for the community to discuss and ratify.

This decentralized and transparent process gives $SEI token holders ultimate control over the blockchain's future evolution.