What is Sei (SEI)?
- Author
- CRYPTO PORT Editorial
- Published
- Updated
- Reading time
- 5 min
In short
Sei is a blockchain designed around trading applications, with mainnet live since 2023. Built on the Cosmos SDK, it includes consensus optimisations aimed at fast order processing, and a later upgrade added an Ethereum-compatible execution environment.
Key points
- Prioritises trading throughput, overlapping stages of consensus to cut latency
- Built on the Cosmos SDK and connects to other Cosmos chains via IBC
- A later upgrade added an EVM-compatible environment that runs Solidity contracts
- SEI pays fees and is staked to validators
Definition
A layer 1 blockchain tuned for exchange and trading applications, optimising consensus and execution for speed.
Running a decentralised exchange at practical speed requires minimising the delay between order submission and execution. On a general-purpose chain, trading transactions queue alongside everything else, which makes that hard. Sei is a chain built specifically for that use.
Its consensus is based on the Tendermint family but overlaps the proposal, voting and processing stages where possible to cut latency. Batching orders for the same market within a block is another element aimed at trading workloads.
A post-launch upgrade added an execution environment that runs Solidity contracts written for Ethereum unchanged, so existing wallets and developer tools work as they are and the barrier to building on it fell. The native environment and the EVM coexist on the same chain.
Because it uses the Cosmos SDK, it can exchange assets and messages with other Cosmos chains over IBC. SEI pays network fees, and holders can take part in staking by delegating to validators.
Watch out for
- · With multiple execution environments on one chain, address formats and wallet support need checking
- · Optimising for speed raises validator hardware requirements and the barrier to participating
- · It has been live for a relatively short time, so its track record under heavy load or attack is limited
Frequently asked questions
If it is EVM-compatible, do Ethereum apps work as they are?
Contract code ports more easily, but the external data feeds and dependent contracts an app relies on must be redeployed per chain. An app with the same name is a separate deployment on each chain.