What is Sei? Architecture, V2 & More

What is Sei Network?

Sei is a cutting-edge blockchain that focuses on speed and efficiency, using parallelization to process multiple transactions at once. Designed to address the limitations of Ethereum's Virtual Machine (EVM), Sei offers 400ms block finality and can handle up to 12,500 transactions per second, making it perfect for developers building high-performance decentralized apps.

With seamless integration between EVM and CosmWasm, Sei expands what's possible in both ecosystems. It uses tools like SeiDB to handle data quickly and efficiently, ensuring low fees and fast processing times. Backed by top institutions, Sei aims to redefine what’s achievable in blockchain development.

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Sei Blockchain Architecture

Sei's architecture is all about pushing the limits of speed, scalability, and interoperability. With innovations like parallel execution, Twin Turbo Consensus, and the SeiDB, Sei delivers a powerful platform for building high-performance decentralized apps. Here's a closer look at the core components that set Sei apart.

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Parallel Execution

Sei’s ability to process transactions in parallel is a game-changer. Unlike traditional blockchains that handle transactions one by one, Sei uses Optimistic Parallelization to handle multiple independent transactions at the same time. 

This cuts down on bottlenecks and ramps up throughput, delivering 400 millisecond finality. The outcome? Apps that rely on fast processing, like trading platforms, can operate smoothly without delays.

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SeiDB

Efficient data handling is essential for a fast blockchain, and that’s where SeiDB comes in. It’s a highly optimized database that supports the heavy data loads that come with parallel processing. SeiDB allows for quick reads, writes, and state updates, so the blockchain can easily handle thousands of transactions per second without slowing down.

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Twin Turbo Consensus

Sei's Twin Turbo Consensus speeds up block validation and finality, slashing the time it takes for transactions to be confirmed. This creates a much faster experience compared to most Layer 1 chains. It’s a huge plus for applications that need near-instant confirmations, like DeFi protocols or high-frequency trading platforms.

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Interoperable EVM and CosmWasm

Sei connects the EVM and CosmWasm ecosystems, making it easy for developers from either environment to bring their apps to the platform. With its interoperable EVM, Ethereum developers can deploy their dApps without any changes, and still benefit from Sei’s superior speed and efficiency. Features like pointer and precompile contracts make interactions between the two virtual machines seamless, giving developers more flexibility.

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What is Sei V2?

Sei V2 is a major upgrade from Sei V1, introducing full parallelization for the Ethereum Virtual Machine (EVM), which wasn’t available in V1. This means developers can now deploy Ethereum smart contracts on Sei without making any changes, while taking advantage of much faster speeds. 

With V2’s Optimistic Parallelization, the blockchain can process up to 28,300 transactions per second, compared to the lower throughput of V1.

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Sei Tokenomics

SEI is the core token of the Sei blockchain, driving essential functions like transaction fees, staking, governance, and more. Here's a breakdown of SEI tokenomics and how it is used across the ecosystem:

• Transaction Fees: SEI is used to pay for transactions on the network.
• Validator Staking: Token holders stake SEI to secure the network and earn rewards.
• Governance: SEI holders can vote on key decisions affecting the protocol.
• Collateral: SEI acts as collateral for decentralized applications on the platform.
• Fee Markets: Users can tip validators in SEI to prioritize their transactions.
• Exchange Fees: SEI is accepted for trading fees on exchanges running on Sei.

The total supply of SEI is capped at 10 billion, with the distribution structured to fuel ecosystem growth:

• Ecosystem Reserve (48%): Supports staking rewards and contributor incentives.
• Airdrops and Incentives (3%): Rewards for active community members.
• Foundation Treasury (9%): Funds operations for the Sei Foundation.
• Launchpool (3%): Backs new projects on the Sei blockchain.

This tokenomics design is built to ensure long-term growth and community-driven governance, aligning incentives for sustainable development.

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Who Founded Sei?

Sei Network was co-founded in 2022 by Dan Edlebeck and Jayendra Jog. Dan Edlebeck, as Head of Ecosystem at Sei Labs, has a background in business development, marketing, and blockchain ventures like Deedle Connects and Exidio. He’s focused on growing Sei’s ecosystem and driving partnerships.

Jayendra Jog, also a co-founder, brings his experience from working on software projects at Robinhood. His technical skills have been key to building Sei’s infrastructure and ensuring it can handle the demands of a high-performance blockchain.

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Bottom Line

In short, Sei sets itself apart with its speed, parallel transaction processing, and smooth integration between EVM and CosmWasm. Features like Optimistic Parallelization and SeiDB make it ideal for high-performance apps needing fast, scalable infrastructure. 

With projects like Dragonswap, Pallet Exchange, and Silo leading the way in its ecosystem, Sei is building a robust platform for DeFi, NFTs, and more. Backed by a strong team and leadership, Sei is well-positioned for long-term growth in the competitive layer 1 space.