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- 1 Sei offers an innovative solution with its Twin Turbo consensus mechanism
- 2 SEI is the native token of the Sei blockchain with a total supply of 10 Billion.
Sei is a layer-1 blockchain that operates on the Cosmos network. Its primary objective is to transform the digital asset trading world, particularly in the DEX ecosystem.
A Beginners Guide to Sei and its Working
Sei is designed to bring speed and convenience of centralized exchanges to customers without compromising the security and decentralization that underpins the blockchain ecosystem.
Unlike centralized exchanges with limited service offerings, Sei is asset and application-agnostic. The network grants access to thousands of tokens across different blockchain applications on its ecosystem.
With this, Sei users can trade effortlessly across various ecosystems like DeFi, NFTs, and GameFi on the blockchain. Its developers have even nicknamed it the “Decentralized NASDAQ” for its expansive offering.
The lack of a suitable blockchain that can solve this challenge has been one of the primary reasons why several dApps have been victims of malicious actors in the past two years.
Sei steps in to offer an innovative solution. With its Twin Turbo consensus mechanism powered by the Cosmos SDK and Tendermint Core, the platform aims to provide decentralized trading apps with the required speed or throughput, security, capital efficiency, and decentralization necessary for optimal performance.
Under the hood, Sei’s mission is to provide users with a seamless user journey similar to most Web2 applications, without compromising trustless and permissionless transactions for all.
The platform is unlike many general-purpose and sector-specific blockchains. For example, when compared to Bitcoin, Ethereum, and even the Solana blockchains, Sei outpaces all of them.
What is an SEI Token?
SEI is the native token of the Sei blockchain with a total supply of 10 Billion. It has secured listings on several major exchanges, including Binance and Kraken. Its debut on Binance resulted in a surge of over 350%. Besides being a speculative item, SEI performs various functions in the Sei ecosystem.
While Bitcoin takes approximately 60 minutes to finalize a transaction, Ethereum boasts six minutes, even with its migration to the proof-of-stake (PoS) consensus mechanism. Solana, on the other hand, takes 2.5 seconds. Sei Network claims to offer a lightning pace in its transactions, with only 500 milliseconds (0.5 seconds) in transaction finality. This makes it a highly scalable protocol for fast-paced digital asset trading.
Decentralized exchange platforms face numerous challenges, two of which are front-running and maximal extractable value (MEV), previously called miner extractable value.
Front-running involves placing a transaction in a queue in anticipation of a future trade. This system is exploited by miners and full node operators who possess insight into pending transactions. By strategically placing trades, they aim to profit based on a pending trade.
MEV measures the potential profit that a miner can obtain if they decide to include, exclude, or re-arrange how transactions are validated and included in the blocks they produce. The Sei blockchain effectively addresses these two systems by using the Tendermint Core mechanism.
Summary
SEI is a decentralized exchange that allows customers to access thousands of tokens across different blockchain applications. It has a total supply of 10 Billion and is listed on major exchanges, including Binance and Kraken. Besides being a speculative item, SEI performs various functions in the Sei ecosystem.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
