SeI Complete Guide - A New Paradigm for Ultra-High-Speed Transactions
Hello! Are you curious about SEI, which has recently been receiving a lot of attention in the cryptocurrency market as a 'revolution in speed'? SEI, which surpasses the speed limits of existing blockchains and can process tens of thousands of transactions per second, is not just fast, but is setting a new standard for the next-generation blockchain ecosystem. We will explain everything about SEI step by step so that even cryptocurrency beginners can easily understand it.
SeI In-Depth Introduction
SEI is not just a simple cryptocurrency, but a layer 1 blockchain network optimized for 'speed'. While existing Ethereum processes 15 transactions per second and Bitcoin processes 7, Say boasts an incredible performance that can process over 22,000 transactions per second. This is not just a difference in numbers, but an innovative change that can be felt in the actual user experience.
Say's biggest feature is that it is a 'blockchain specialized for trading'. Unlike existing general-purpose blockchains, Say was designed from the beginning for high-speed transactions required by exchanges, DeFi protocols, NFT marketplaces, etc. In particular, it provides innovative solutions to solve the MEV (Maximal Extractable Value) problem, allowing users to experience a more fair and efficient trading environment.
SEI's Key Advantages:
- Ultra-fast processing: Real-time trading with 22,000+ TPS per second
- Ultra-low fees: $0.0001 per transaction
- Completeness: Instant confirmation with transaction completion within 600ms
- EVM compatibility: Easy portability of Ethereum-based apps
A detailed history and development of SEI
SEI's journey It was launched in early 2022 by Jeff Feng and Jay Jog, both former Goldman Sachs executives. The two founders came up with a completely new approach to solve the speed limitations and MEV problems of existing blockchains. In particular, based on their experience in traditional financial markets, they had a vision that blockchains should be able to operate as quickly and efficiently as Nasdaq.
In August 2022, they raised $5 million in a seed round, followed by a $30 million Series A investment led by Multicoin Capital in April 2023. Since the mainnet launch in August 2023, they have attracted industry attention with their TVL (Total Value Locked) exceeding $500 million in just a few months.
In particular, in 2024, they introduced Parallel EVM to provide full compatibility with Ethereum. This enabled existing Ethereum-based dApps to migrate to the SEI network without any separate code modifications, which was a major turning point in the expansion of the ecosystem.
SEI's Innovative Technology Structure
SEI's amazing performance is realized through a combination of several innovative technologies. The most important one is the 'Twin-Turbo Consensus' mechanism. This is a significant improvement over the Tendermint-based consensus algorithm, and achieves consensus that is three times faster than before by processing block proposals and voting in parallel.
Another key technology is 'Intelligent Block Propagation'. This optimizes block propagation between network nodes, ensuring consistent performance anywhere in the world. In particular, it minimizes delays between Asia, Europe, and the United States, allowing global users to experience a fair trading environment.
'Optimistic Parallelization' is also a notable technology. This is a method of processing independent transactions simultaneously, but switching to sequential processing only when a conflict occurs. This allows us to enjoy the benefits of parallel processing in most situations while ensuring security.
Technical Innovation Points: Sei is the first blockchain to natively support Order Book at the blockchain level. This allows us to implement the performance of a matching engine at the level of a centralized exchange in a decentralized environment.
Various Use Cases and Ecosystem of Sei
The Sei ecosystem has grown at an incredible rate since its launch. Currently, more than 200 projects are being built on the Sei network, which can be broadly divided into several categories.
DEX (Decentralized Exchange) Ecosystem: Major DEXs such as Astroport, Dragonswap, and Kryptonite are utilizing Sei's high-speed trading capabilities to provide users with a trading experience at the level of a CEX. In particular, Order Book-based trading is now possible, providing a new trading experience that goes beyond the limitations of the existing AMM method.
DeFi Protocols: Vortex Protocol (derivatives), Silk (stablecoin), Dagora (prediction market), etc. are providing innovative financial services by utilizing Sei's fast transaction confirmation and low fees. In particular, Sei's speed is a game changer for arbitrage and liquidation bots that require high-frequency transactions.
NFTs and Games: NFT marketplaces such as Cosmose, Yaka, and Pallet Exchange utilize Sei's fast transaction speed to enable real-time auctions and instant transactions. In addition, real-time interaction required in blockchain games is smoothly implemented thanks to Sei's low latency.
Active Sei Community and Governance
The Sei community is very active globally. The official Discord server has over 50,000 developers, traders, and investors, sharing information in real time. In particular, technical discussions are active, and in-depth discussions are taking place on network upgrades and new feature proposals.
SEI operates an on-chain governance system, allowing SEI token holders to directly participate in important network decisions. So far, several proposals have been decided through voting, including adjusting network parameters, activating new features, and using community funds.
The Korean community is also growing. The Korean SEI community Telegram group shares the latest news in Korean and communicates directly with the project team through regular AMA (Ask Me Anything) sessions. In addition, DeFi protocols in Korea are actively considering expanding to the SEI network, so an even more active ecosystem is expected in the future.
SEI Wallet and Security Management
To use the SEI network, a compatible wallet is required. The most widely used wallet is currently 'Compass Wallet'. This is a wallet specialized for the Sei ecosystem, providing all functions such as SEI token storage, staking, DeFi protocol access, and NFT management. It is convenient as it provides both browser extensions and mobile apps.
Keplr Wallet is also a representative wallet that supports Sei. Keplr, the representative wallet of the Cosmos ecosystem, can be used by adding the Sei network, and provides a familiar interface for users who are already using Keplr.
In terms of security, Ledger hardware wallets have started supporting Sei. If you plan to store a large amount of SEI for a long time, we strongly recommend using a hardware wallet. You can safely protect your assets from hacking or phishing attacks by storing your private key offline.
Wallet Security Checklist:
- Keep your seed phrase in a physically secure location
- Regularly update your wallet software
- Do not access suspicious links or dApps
- Double-check addresses before transactions
Things to Consider Before Investing in SEI
Investment Risk Warning: Cryptocurrency investment carries a risk of loss of principal. You should conduct sufficient research and careful review before investing, and only invest within the range you can afford.
If you are considering investing in SEI, you should definitely review several important factors. First, you need to understand the competitive landscape. There are strong competitors in the high-performance blockchain market, such as Solana, Avalanche, and Polygon. You need to analyze how Sei differentiates itself from them and what position it can occupy in the market.
Second, you need to keep an eye on adoption and real-world usage. No matter how great a technology is, it is meaningless if it is not actually used. It is important to monitor the actual adoption situation through indicators such as TVL growth rate, number of daily active users, and transaction volume.
Third, you need to understand token economics accurately. The total supply of SEI tokens, vesting schedule, staking reward rate, and burn mechanism have a direct impact on token value. In particular, you need to check the token unlock schedule of early investors and the team to predict potential selling pressure.
Fourth, you need to consider regulatory risks. Sei is a US-based project, and may be sensitive to changes in US cryptocurrency regulations. The impact of SEC policy changes or new regulations on the project should be continuously monitored.
Finally, technical risks should not be overlooked. SEI is a relatively new network, and there is a possibility of stability issues in high-traffic situations and unexpected bugs. The impact of these technical issues on the token value should also be considered when making investment decisions.
Conclusion: SEI’s Future Prospects
SEI is providing an innovative solution to the long-standing challenges of the blockchain industry: speed and scalability. With ultra-high transaction processing capabilities, extremely low fees, and full compatibility with Ethereum, SEI is fully demonstrating its potential as a next-generation blockchain infrastructure.
In particular, it is very significant that it has achieved the performance level required by existing financial systems on blockchain. This goes beyond a simple technical achievement and provides a realistic foundation for actual financial institutions and large trading platforms to adopt blockchain.
However, success is not guaranteed. In a fiercely competitive environment, continuous innovation and ecosystem expansion are necessary, and above all, adoption by actual users will be the most important success factor. If you are considering investing, please make a careful decision by comprehensively considering not only technical excellence but also market conditions, competitive landscape, and regulatory environment.
It will certainly be interesting to watch the changes and innovations that Say brings to the blockchain industry. We look forward to future developments, and we hope you will also pay attention to the growth of Say’s ecosystem.