Sei is an orderbook Layer-1 blockchain built with Cosmos SDK and Tenderint core. It features a built-in central limit orderbook (CLOB), on top of which decentralized applications can be built. Other Cosmos-based blockchains can also leverage Sei's CLOB as a shared liquidity hub and create markets for any asset. Apps can easily plug-and-play to trade on Sei orderbook infrastructure and access pooled liquidity from other apps.
*Learn more in our report discussing in details Sei ($SEI) and other emerging new layer blockchain projects - Beyond Aptos, Sui & Canto | An in-Depth Guide to the Emerging Alt-L1s
Sei is a horizontal scaling solution that is designed for a particular purpose. Unlike general-purpose chains like Ethereum, Aptos, or Sui, Sei is for DeFi.
Sei claims to be the first use case-specific blockchain as it attempts to build an on-chain orderbook, making it ideal for DeFi applications.
It is built with the Cosmos SDK and leverages the IBC Protocol for inter-chain interoperability in the Cosmos ecosystem. Similar to other Cosmos layer 1s, it also uses the Tendermint Core for reaching a consensus.
Sei aims to develop several unique features, for example, a native order matching engine, i.e., a decentralized Nasdaq, and built-in frontrunning protection. Sei can aggregate every order together at the end of the block and execute all market orders at the same price to help prevent frontrunning.
Sei plans to employ parallel processing to increase throughput. But it hasn’t released many details about how it would accomplish it.
Sei has released plans to develop an optimistic layer 2 on Sei called Nitro that is Solana Sealevel-VM compatible, hoping to allow more Solana developers to more easily deploy on the Cosmos ecosystem.
Jeffrey Feng and Jayendra Jog co-founded Sei. The core team behind Sei Network is Sei Labs. The Sei team comprises members with experience in tech and traditional companies, such as Robinhood, Databricks, Airbnb, Goldman Sachs, etc.
Except the gas fee payment function, $SEI can be staked to gain its holders governance right.