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Sei is a Layer-1 aiming to become the fastest network for exchanging digital assets.

Already a highly performant network, the Sei V2 upgrade and Parallel Stack will further differentiate Sei and could catalyze growth.

Get up to speed on Sei and its ecosystem🧵

Protocol Research /messari • Nomading the world 🌎

Let's start with the tech, a critical piece for this cycle's alt L1s.

We're seeing Sei competing with nascent, non-EVM Layer-1 networks like Sui and Aptos, incumbents like Solana, and the upcoming parallelized EVM in Monad.

So, what differentiates Sei?

Sei was built with Cosmos' technologies and is compatible with Cosmos’ IBC and CosmWasm contracts written in Rust.

As an integrated blockchain, Sei combines the responsibilities of execution, settlement, consensus, and data availability into a single network.

Features built into Sei's blockchain are optimized to reduce transaction latency + increase transaction throughput (faster + cheaper).

Sei's combination of technological features separates it from the pack. Namely, Twin-Turbo Consensus and transaction parallelization.

Twin-Turbo Consensus

Intelligent Block Propagation - Validators can reconstruct the contents of proposed blocks more quickly by leveraging their mempools.

Optimistic Block Processing - Once reconstructed, proposed blocks are optimistically assumed to be valid

Thus, Transaction latency ⬇️

Transaction Parallelization

When transactions don't interact with the same part of the Sei's state, they can be executed in parallel.

If dependencies don't exist, contracts can operate independent of one another, reducing network congestion.

Thus, Transaction throughput ⬆️

Sei's roadmap is packed, with three major features coming on H1 2024 with the launch of the Sei V2 upgrade.

(1) EVM Integration
(2) Optimistic Parallelization
(3) SeiDB

On top of this, an open-source Sei Parallel Stack that would introduce Layer-2s is planned.

(1) EVM Integration

Sei V2 plans to introduce EVM compatibility. Smart contracts written in Solidity + ERC token standards will be functional on Sei.

The integration will be backward compatible so that contracts on Ethereum and its Layer-2s can be redeployed on Sei.

(3) SeiDB

Sei V2 plans to re-architecture the network’s storage interface. SeiDB will introduce a new storage layer that is expected to improve network performance across the board.

For example, improved state read/write performance, decreased state bloat, and reduced hardware requirements for node operators.

(4) Parallel Stack

Once Sei V2 is live and Sei is EVM-compatible, the open-source Sei Parallel Stack plans to enable developers to launch modular, Layer-2 blockchains that serve as parallel EVM execution layers.

Since Sei’s mainnet launch in August 2023, protocols across various sectors have launched and grown the ecosystem.

DeFi - Astroport is Sei’s top DEX. Traders can use perpetual DEXs like Levana Protocol, while lending protocols like Hoyu and Kawa Finance are being tested on Sei’s Public Devnet.

Liquid Staking - Protocols like Silo and Kryptonite enable users to liquid-stake SEI tokens through their respective iSEI and stSEI tokens.

Wallets - Sei-native wallets include Fin Wallet and Compass Wallet, while Space ID offers the .sei Name Service.

NFTs - The NFT ecosystem on Sei is one of the most active sectors on the network. Sei-native NFT marketplaces include Pallet, MRKT, Quik, and Dagora.

NFT projects include those such as:

(1) Seiyans, which is building MRKT
(2) The Colony, which is building AntSwap
(3) WeBump, which offers a toolkit called Lighthouse

Gaming - A partnership with PixelRealm looks to bring their venture fund, gaming marketplace, and gaming studio to Sei.

DePIN - Nimble Network first launched on Sei, aiming to decentralize the training of artificial intelligence (AI) models.

Sei is a highly performant Layer-1 due to its technological features. Since August 2023, an ecosystem of Sei-native projects has emerged.

To maintain momentum as Sei matures, the successful realization of its roadmap is critical for continued growth and differentiation.

If you want to learn more about Sei, its ecosystem, and the SEI token, check out our new Messari Initiation of Coverage report!

If you want to learn more about Sei, its ecosystem, and the SEI token, check out our new Messari Initiation of Coverage report!  

https://messari.io/report/understanding-sei-a-comprehensive-overview

(2) Optimistic Parallelization

Parallelization on Sei is currently optional, requiring dependency mappings to be defined. 

Sei V2 plans to introduce optimistic parallelization, where all transactions will optimistically be assumed to be eligible for parallel processing, easing the developer experience.