Overview
Sei is a layer-1 blockchain that launched on August 15, 2023, built specifically for trading applications. It uses a proof-of-stake consensus mechanism with its native token SEI. Sei's design prioritizes fast order matching and low latency, making it a home for order-book DEXs and trading-focused applications.
How It Works
Sei's blockchain is optimized for trading through parallelized order matching and an optimistic process that allows requests to be processed concurrently. It uses proof of stake for security and offers a native order book module that developers can use to build exchanges. The network's throughput focus is supported by fast finality and a specialized validator architecture.
Why It Matters
Sei is a representative example of an application-specific Layer 1, built around a single dominant use case: trading. Its design shows how chains can optimize for performance rather than general purpose compute. Its success and competition with other trading chains illustrate the ongoing battle for liquidity and order-flow in the DeFi ecosystem.
Related Concepts
Sei is a Layer 1 chain using Proof of Stake, related to the application-chain and Modular Blockchain movements. It hosts trading applications and competes with general-purpose chains like Solana for exchange workloads.