Sei stands as the first Layer-1 blockchain network that is fully optimized and specifically adapted for decentralized trading, decentralized exchanges (DEXs), and decentralized finance (DeFi). Since its mainnet launch in August 2023, it has demonstrated incredible transaction speeds with no recorded downtime or outages.
This blockchain consistently finalizes blocks in approximately 390 milliseconds, making it the fastest blockchain in terms of transaction speed. Additionally, it regularly handles over 45 successful transactions per second (TPS), ranking it as the second-highest chain for TPS currently in operation.
As an integrated, or monolithic, blockchain, Sei combines execution, settlement, consensus, and data availability into a single cohesive network. It is compatible with the Cosmos Inter-Blockchain Communication (IBC) protocol and was constructed using modified forks of the Cosmos SDK and the Tendermint Core protocol.
Understanding the Twin Turbo Consensus Mechanism
A prevailing narrative in the blockchain space suggests that modular architectures are superior to integrated ones. Sei challenges this notion by achieving unprecedented speed and reliability as a monolithic network.
The key to Sei's performance lies in its focus on "time to finality"—the duration required for its globally distributed validator set to reach consensus. This focus led to the development of the Sei Twin Turbo consensus, a series of enhancements built on top of the Tendermint core.
Tendermint consensus originally featured a 6-second block time. Through Twin Turbo optimizations, Sei Labs reduced this to under 400 milliseconds, achieving single-slot finality. This makes Sei roughly 2,000 times faster than the Ethereum network.
The Twin Turbo consensus is primarily composed of two major innovations: optimistic block processing and intelligent block propagation.
Intelligent Block Propagation: Instead of broadcasting an entire block to other validators, a block proposer sends a compact block proposal. This message contains unique transaction identifiers and a reference to the full block, drastically reducing initial data transfer size and speeding up propagation.
Optimistic Block Processing: When a validator receives the first block at a given height, it immediately runs basic checks and begins processing it during the pre-vote and pre-commit phases. The validator optimistically writes the candidate state to a cache, allowing transaction processing to begin immediately upon receiving a valid proposal rather than waiting for the entire consensus step to conclude.
These innovations work in tandem to minimize latency and maximize throughput, cementing Sei's position as the fastest blockchain.
The Evolution to Sei V2
A major network upgrade in November 2023 marked a significant evolution for Sei, transforming it into the first production-ready parallelized Ethereum Virtual Machine (EVM) blockchain.
Parallelization allows multiple virtual machines to run simultaneously on separate threads within a network computer. Each thread executes transactions and generates "pending results," which track the inputs and outputs of those transactions. These results are then returned to their original linear order. If any result has invalidated inputs, the transaction is rescheduled for processing.
This architectural shift provides two core benefits:
- Backward Compatibility: EVM smart contracts from other chains, particularly Ethereum, can be seamlessly redeployed on Sei without any code changes. This eliminates a significant barrier to entry for developers.
- Optimistic Parallelization: The chain supports parallelization without requiring developers to manually define transaction dependencies, simplifying the development process and enhancing efficiency.
Sei V2 also plans to introduce SeiDB, a restructuring of the network’s storage interface. This new storage layer aims to decouple the State Commitment Layer from the State Store Layer. The anticipated outcomes include improved state read/write performance, faster state synchronization for new nodes, and reduced hardware requirements for node operators.
For developers looking to leverage these advanced capabilities, it is crucial to explore more strategies for building on high-performance networks.
An Overview of the Sei Ecosystem
Since its mainnet launch, Sei has fostered a rapidly growing and diverse ecosystem of decentralized applications (dApps) across multiple sectors, including DeFi, liquid staking, and NFTs.
Decentralized Finance (DeFi)
Sei's high throughput and low latency provide an ideal environment for DeFi applications. The network's Total Value Locked (TVL) stood at approximately $30 million as of recent metrics, with Astroport serving as the primary decentralized exchange on the network. This rich DeFi landscape leverages Sei's inherent speed to offer users a seamless trading experience.
Liquid Staking
Liquid staking has emerged as a vital component of the Sei ecosystem, allowing users to stake their SEI tokens while maintaining liquidity. The leading protocols in this space are:
- Silo: Allows users to mint iSEI tokens against their staked SEI. It reported a TVL of $9.6 million.
- Kriptonite: Offers liquid staking through its stSEI token and held a TVL of $2.9 million.
These services provide stakers with flexibility and the ability to participate in other areas of the DeFi ecosystem with their capital.
Non-Fungible Tokens (NFTs)
The NFT sector is one of the most dynamic and active areas within the Sei ecosystem. Network data shows a steady level of activity from NFT-related addresses and consistent daily sales volume.
Two of the most prominent NFT collections on Sei are:
- Seyans: This project has expanded beyond Sei onto the Solana blockchain. It has also introduced its own native DEX and NFT marketplace, showcasing the cross-chain potential of projects born on Sei.
- The Colony: A collection of 5,555 "Mafia Antz" NFTs. The project recently launched AntSwap, its native token aggregator on the Sei network, which alone has facilitated the staking of over 200,000 SEI tokens.
The vibrant activity in NFTs highlights the community engagement and cultural development happening on the chain.
Frequently Asked Questions
What makes Sei different from other blockchains?
Sei is the first Layer-1 blockchain specifically designed for trading. Its key differentiator is its speed, achieved through the Twin Turbo consensus mechanism, which enables block finality in about 390ms. This makes it significantly faster than general-purpose blockchains like Ethereum.
Is Sei compatible with Ethereum?
Yes, with the Sei V2 upgrade, the network became a parallelized EVM. This means it is fully backward compatible with Ethereum, allowing developers to deploy existing Ethereum smart contracts on Sei without modifying the code.
How can I stake my SEI tokens?
You can stake SEI tokens directly with network validators to help secure the network and earn staking rewards. For those seeking liquidity, several liquid staking protocols like Silo and Kriptonite allow you to mint liquid staking tokens (e.g., iSEI, stSEI) that can be used elsewhere in DeFi. To understand the full process, you can get advanced methods for participating in network security.
What is parallel execution?
Parallel execution is a processing method where multiple transactions are executed simultaneously across different threads, as long as they do not conflict with each other. This is opposed to linear execution, where transactions are processed one at a time. Sei V2 uses this to dramatically increase its throughput and efficiency.
What is the TVL on Sei?
The Total Value Locked (TVL) on Sei is a measure of the total capital deposited in its DeFi protocols. As of recent data, the TVL across the ecosystem was approximately $30 million, spread across decentralized exchanges, lending protocols, and other financial applications.
Is the Sei NFT market active?
Absolutely. The NFT sector on Sei is highly active, with consistent daily sales volume and a strong community. Projects like The Colony and Seyans are leading the way, having built significant ecosystems with their own marketplaces and token utilities.
Final Insights
Sei continues to uphold its reputation as one of the fastest and most stable integrated blockchain networks available. The introduction of EVM parallelization with Sei V6 months ago has provided significant advantages, including seamless backward compatibility for Ethereum developers and optimistic parallelization that requires no extra effort from them.
The ecosystem is flourishing, with a strong DeFi foundation, innovative liquid staking solutions, and a particularly vibrant NFT scene that is capturing significant attention and value. The network's fundamental design ensures it is well-positioned to continue its growth as a premier destination for high-performance decentralized applications, especially in the trading and exchange verticals.