Based on a Yahoo Finance report, one of the companies that stands out in the crypto mining sector is Hut 8 Mining Corp. (HUT), a major crypto mining company in North America.

Hut 8 provides computing power to mining pools in exchange for digital assets. Since the start of this year, its shares have soared 318.8 percent, beating expectations with earnings growth forecast at 50 percent for this year.

Despite its strong performance, Hut 8 Mining Corp. currently has a Zacks Rank of 3rd, indicating potential for further growth and consolidation.

Sei Network is Defi specific layer-1 network built with the Cosmos SDK. It offers unique protocol-level features to support DeFi applications.

What is Sei?

The Sei Network is a layer-1 blockchain built to support DeFi. Sei is made with the Cosmos SDK, which means it is connected to the Cosmos ecosystem via IBC while Tendermint secures its consensus engine. The Sei execution layer connects to the Tendermint core via ABCI++, an upcoming upgrade to Cosmos ABCI that offers unique customizations to the consensus engine.

The first Defi-specific blockchain

A dapp developer in the early days of Defi had no other alternative but to deploy their program on the Ethereum mainnet. It did not matter if the dapp was a DEX, an NFT, a blockchain-based game, or a data analytics protocol; all dapps lived on one chain and constantly competed with each other for block space.

The Defi landscape is profoundly different today. A dapp developer in 2023 has several options; they may deploy their application on Ethereum or one of its rollups for better throughput. On the other hand, they may leave Ethereum altogether and choose one of the other L1 alternatives like Near, Fantom, or Solana or whip up a standalone chain.

The Sei network adopts a slightly different approach. Sei is neither a standalone appchain DEX nor a general purpose and permissionless blockchain, but a permission blockchain built to serve the needs of DeFi protocols like DEXs and lending platforms. It sets a middle ground between the two extremes. First, it is DeFi-specific, which prevents the network from being overcrowded. Then, it offers unique features like a native price oracle, single block order, order building, and batch auctioning that incentivize building on Sei over the appchain route.

Sub-second finality with ABCI++

The primary objective for the Sei network is to build an environment that can efficiently support order book decentralized markets, as opposed to liquidity pool AMMs. Order book markets need sub-second finality to work correctly. Sei offers near-instantaneous finality by leveraging the capability of ABCI++, which lets appchains customize every step of the consensus process, like modifying, adding/dropping, or reordering transactions.

With ABCI++, Sei offers these customizations –

Optimistic block production

Sei saves block processing time by optimistically verifying blocks once they are proposed during consensus. As a result, Sei can speed up processing by 30% by processing blocks during the prevote and pre-commit phases of consensus. If the optimistically verified block gets rejected during the prevote or pre-commit process, the consensus discards the block and runs again for that height, this time without optimistic verification.

Twin-turbo consensus

Tendermint is a partially synchronous blockchain, meaning the nodes do not verify blocks linearly. Once a Sei blockchain node verifies a block, it propagates this message to other nodes via network gossiping. Instead of gossiping the entire block data; Sei nodes reduce latency by propagating the block headers. This is because they already have access to 99% of the block data from the mempool, which they use along with the block header to reconstruct and verify the block. This method of block propagation reduces latency.

Parallel order execution

The Ethereum blockchain follows sequential order execution, meaning the transactions are processed linearly. Sei is built for Defi transactions like swaps and staking, which means many transactions take place in mutually exclusive markets that the blockchain can process in parallel. Sei reports that parallel processing increases the network’s throughput by 75–90%.

Besides the improvements made by leveraging ABCI++, Sei also offers additional features in the base layer itself.

Additional Defi-centric features

Native price oracle — Sei validators are required to participate as price oracles; their votes are used to calculate the price of assets at the end of every block and are penalized for non-participation and for providing bad data.

Native order matching engine — Sei order matching engine allows individual DEXs on the blockchain to deploy their respective markets. It offers general trading features like market orders, limit orders, and stop-loss orders. Moreover, the order placement and execution can happen in the same block, which reduces slippage (other order book DDEXs generally take several blocks to process orders).

Asset agnostic order book — instead of tokenizing positions, DEXs on Sei can track positions as a list in their smart contract state.

Frequent batch auctioning — Sei discourages transaction frontrunning by aggregating all market orders and executing them at the same uniform clearing price.

Transaction order bundling — Sei users can update positions on various markets in one transaction.

This concludes the features and innovations made by the Sei blockchain. In another article, we will soon explore the Sei ecosystem and some potential drawbacks and compare it with its competition.

#fundamentals #Blockchain #BinanceFeed #signal

$METIS Before its Binance listing on March 11, 2024, the METIS coin price fluctuated between $84 and $117, with a peak market cap of approximately $610 million. Upon listing, the price surged to a record high of $142 before experiencing a correction alongside the broader market. Currently, METIS trades at an average of $87-90, representing a roughly 39% discount from its all-time high. This potential discount might be enticing for some investors. However, before diving in, it's crucial to understand the fundamentals behind METIS and the factors that will influence its long-term success. Here, we'll delve into these key aspects to help you make an informed decision.
Strengths and Opportunities:
Addressing Ethereum's limitations: High gas fees and low throughput on Ethereum can be a major bottleneck for dApps. Metis' Layer 2 solution with MVM could offer a faster and cheaper alternative for developers and users.
Focus on Decentralized Collaboration (DACs): The DAC framework could be attractive for organizations and communities seeking a more transparent and trust-based way to collaborate.Scalability and Cost-efficiency: MVM's design with separate storage and compute layers and the use of decentralized compute power providers could enable horizontal scaling and lower infrastructure costs.EVM compatibility: Compatibility with the Ethereum Virtual Machine (EVM) could make it easier for developers to port existing dApps to Metis.
Challenges and Considerations:
Competition: The Layer 2 scaling space is crowded, and METIS will need to compete with established players like $ARB and $OP etc.Technical Novelty: MVM is a new design, and there might be undiscovered vulnerabilities. Thorough security audits and testing will be crucial.Managing Sensitive Data: Finding a balance between on-chain transparency for dispute resolution and secure storage of sensitive data within DACs will be critical. IPFS integration might need further evaluation.Community Building: Attracting developers, businesses, and users to the Metis ecosystem will be essential for its long-term success.
In conclusion, METIS has the potential to be successful by addressing key challenges of Ethereum and offering a unique solution for decentralized collaboration. However, overcoming the competitive landscape, ensuring the security of its novel architecture, and fostering a strong community will be crucial factors in its success. What are your thoughts on this?
Source: METIS's white paper, coinmarketcap.com
#Write2Erarn #METIS #fundamentals