Why is Sei Network the most suitable for Defi trading?
Why is Sei Network the best choice for Defi trading?
Author: Prateek TriLianGuaithi Translation: Shan Ou Ba, LianGuai
In the fast-paced world of decentralized finance (DeFi), speed and efficiency are crucial. This is where Sei Network comes in. Sei is an open-source Layer 1 blockchain that has become the fastest blockchain on the market, designed specifically to revolutionize the way we transact digital assets. In this article, we will explore the key features and innovations of Sei Network and why it is considered the preferred platform for DeFi transactions.
Pursuit of Speed: Sei’s Lightning-fast Blockchain Technology
The core of Sei Network’s lightning-fast speed lies in its innovative Twin Turbo consensus mechanism. This mechanism combines intelligent block propagation and optimistic block processing to deliver unparalleled performance. Sei’s ultimate confirmation time is set at just 300 milliseconds, setting a new standard for blockchain speed. Intelligent block propagation allows Sei to optimize throughput by accelerating speed as much as possible and slowing down when necessary. Block proposers send compressed block proposals containing only transaction hashes, significantly reducing the time and bandwidth required for block processing. Validators receiving these compressed proposals can reconstruct the original blocks using transactions in the memory pool, resulting in a 40% increase in overall throughput. Optimistic block processing takes Sei’s speed to a new level. By skipping the pre-voting and pre-commitment steps, validators can directly invoke the block finalization function, significantly speeding up block validation and voting. This approach allows Sei to process block proposals simultaneously, increasing throughput by 33%. Block times reach around 300 milliseconds, allowing Sei to process up to 22,000 orders per second while maintaining 500 milliseconds of finality.
Market-based Parallelism for Increased Throughput
Sei takes parallelism to a new level through its market-based parallelism approach. Unlike other high-performance ecosystems, Sei’s parallelism is specifically tailored for transaction functionality. By simultaneously processing orders from independent markets and sequentially processing orders within the same market, Sei achieves throughput levels 5-10 times higher than competitors. This means faster block times, lower latency, and higher throughput, ensuring a seamless trading experience for users.
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Native Matching Engine and Front-running Prevention
Sei Network provides a native order matching engine built directly into the Layer 1 blockchain itself. This enables Sei-based trading applications to scale effectively, providing traders with a seamless and efficient trading experience. Additionally, Sei implements front-running prevention mechanisms to address the common issue of malicious front-running in other ecosystems. These built-in features ensure fair and secure transactions on the Sei network.
The Power of Sei: Optimized Infrastructure for Trading Applications
All trading applications have unparalleled speed and efficiency
Sei Network’s infrastructure is optimized to provide unparalleled speed and efficiency for all types of trading applications. Whether it’s decentralized finance (DeFi) decentralized exchanges (DEX), non-fungible token (NFT) markets, or game DEX, Sei claims to outperform any other Layer 1 blockchain in terms of performance. With its cutting-edge solutions, Sei aims to address the scalability issues of DEX and become the preferred infrastructure for exchanges seeking to meet their trading needs.
The Core Argument: Exchanges as the Fundamental Use Case for Blockchain
Sei’s core argument is that the fundamental use case for blockchain is the ability to exchange digital assets. The success of most well-known Web3 applications is rooted in asset exchange, even if they are not explicitly marketed as exchanges. From DEXs like Uniswap and Sushi to gaming platforms like Axie Infinity and StepN, asset exchange drives the value and user experience of these applications. By focusing on optimizing its exchange infrastructure, Sei aims to unlock the next stage of growth for Web3 adoption.
The Exchange Dilemma: Solving Scalability Challenges
Exchanges face a significant scalability challenge known as the “exchange trilemma.” They cannot simultaneously achieve decentralization, scalability, and capital efficiency. Sei Network addresses this challenge by optimizing every layer of the stack to provide the best infrastructure for trading applications. With Sei, exchanges no longer need to compromise on decentralization. They can offer the same user experience as any Web2 application while maintaining the trustless and permissionless nature of blockchain transactions.
The Increasing Importance of Exchanges in Web3
As Web3 continues to evolve, the role of exchanges will only become more important. The surge in digital assets and their 24/7 nature creates a greater demand for efficient and scalable trading infrastructure. Additionally, the higher regulatory pressure faced by centralized exchanges (CEX) is expected to drive increased on-chain trading volume and activity. This presents a significant opportunity for DEXs to expand and adapt to the growing wave of adoption. Sei Network is at the forefront of this development, providing the necessary infrastructure for the next stage of Web3’s growth.
The Impact of Sei Network on DeFi Trading
Sei Network focuses on optimizing every layer of the trading application stack, bringing significant benefits to developers and users. Developers can leverage Sei’s infrastructure to build decentralized exchanges with centralized limit order book (CLOB) systems similar to traditional centralized trading platforms like Binance and Coinbase. This system offers cost-effectiveness, decentralization, and transparency. Additionally, Sei’s infrastructure supports automated market maker (AMM) systems commonly used in DeFi applications, providing flexibility for developers to build various trading functionalities. For users, Sei Network offers a seamless and efficient trading experience. Lightning-fast speed and high throughput ensure quick order execution and minimal latency. Built-in matching engine and front-running prevention mechanism provide fair and secure trading. Additionally, Sei’s batch order feature simplifies the process of updating multiple orders across different exchanges, improving the efficiency and reducing the cost for market makers.
Sei Token and Its Listing on Binance
The native cryptocurrency SEI token of Sei Network plays a crucial role in the ecosystem. It serves as the medium of exchange within the network, facilitating the seamless operation of transaction applications. In order to further enhance its utility and accessibility, Binance, one of the leading cryptocurrency exchanges, announced the listing of SEI token on its platform. This listing is expected to increase the liquidity and visibility of SEI token, attracting more traders and investors to join the Sei Network ecosystem.
The Future Vision of Sei Network
Sei Network is not content with the status quo. The development team behind Sei, known as Sei Labs, is continuously working on improving and expanding the functionalities of the network. They envision Sei to be the preferred platform for all types of transaction applications, not only in the DeFi field but also in gaming, NFT, and other emerging areas. By providing optimized infrastructure, Sei aims to assist developers in building innovative and user-friendly transaction applications, driving the adoption of the next wave of Web3.
Sei Network is revolutionizing the DeFi trading world with its lightning-fast Layer 1 blockchain. With its Twin Turbo consensus mechanism, market-based parallelism, and native order matching engine, Sei offers unparalleled speed and efficiency for all types of transaction applications. Sei focuses on optimizing exchange infrastructure, aiming to address the scalability issues faced by DEX and providing a first-class trading experience. With the recent listing on Binance, Sei Network is poised for further growth and adoption. As Web3 continues to evolve, Sei Network is at the forefront, driving the transformation of the trading landscape and unlocking new possibilities for decentralized finance.