Sei Network is the new L1 that has been in development since the beginning of 2022, apparently with an incredible vision, since today the AMMs (Automated Market Makers) market or decentralized exchanges (DEX) are a norm in the market, but being a relatively new ecosystem, there are many deficiencies, Sei has come in to solve all this.
What is Sei?
Sei will be the first L1 blockchain specialized for DeFi apps, featuring a built-in CLOB (Centralized Limit Order Book) module designed to optimize transaction speed, stability and profitability.
Sei is creating an order matching engine where every application built on the network can take advantage of its IBC capabilities by building on top of the Cosmos SDK.
Problems to solve with Sei.
Sei's top 3 solutions for DeFi are;
Built-in Order Book.
INCREDIBLY fast transactions. (5X more than Solana)
Protection against front-running bots.
If you have used DeFi, you will know that this is a problem, Sei brings this proposal that is difficult to improve.
What is CLOB?
“Centralized Order Book” is exclusive to Sei dApps can be built on top of the CLOB and other Cosmos blockchains can leverage Sei's CLOB as a shared liquidity hub to create markets for any asset. This is an alternative to the AMM model.
Historically, order books have been one of the most difficult applications to build and scale on-chain, so difficult that no team has been able to do it successfully. The issue arises from the scalability of the underlying L1, but with Sei, dApps gain off-chain speed with on-chain security.
Ecosystem
So why might existing dApps in other L1s consider Sei? Order book-based DeFi applications on Sei achieve higher performance than any other chain by aggregating orders in 2 main ways…
Pooling orders from all markets at the end of block delivery, this means that Sei only needs to start Cosmwasm VM once for each dApp (largest latency overhead)
Grouping a group of orders sent by a single account.
Currently over 60 dApps are building on Sei, including major dApps like SushiSwap and more. You can look at it here: https://www.seinetwork.io/ecosystem
Cosmos SDK
Sei's decision to build their own blockchain on Cosmos allows them to customize the network for their specific needs, which is to include the built-in CLOB module. A permissioned blockchain built on a flexible layer.
The permissioned nature allows for careful selection of application launches on your network. This allows for maximum compatibility and avoids those that are detrimental to the performance of the core protocol.
In addition to that, Cosmos SDK enables cross-blockchain communication in the Cosmos ecosystem through Inter-Blockchain Communication (IBC).
Use cases for Sei
Some of the use cases that come to mind are;
DeFi
Derivatives
Online Betting
And any development that can take advantage of the speed, scalability and low cost of Sei, to give you an idea, Sei can be 5X times faster than Solana $SOL.
Actual state
Currently, Sei is in the Testnet phase, with the Mainnet launch planned for Q2 2023.
You can interact with the testnet here: https://app.seinetwork.io/faucet
With a KEPLR wallet: https://www.keplr.app/
Interact with dApps that support the Sei testnet: https://www.seinetwork.io/ecosystem
Backers and Team
The Sei Labs team is made up of experts with experience at Goldman Sachs, Airbnb, Robinhood, etc. You can see more about the team here: https://www.linkedin.com/search/results/people/?currentCompany=% 5B%2282347897%22%5D&origin=COMPANY_PAGE_CANNED_SEARCH&sid=olz
As for backers, we have industry leaders such as Coinbase, Multicoin, LayerZero and more, all of these teams are behind Sei's interests and its development, is there any doubt if it will be a success? I don't believe it…
Personal opinions
The AMM market is currently super popular and hard to beat to be honest, Sei is the possible beginning of a new era in DeFi and I am confident that it will be incredibly successful. However, we already know that on this Medium, nothing is financial advice, #NFA #DYOR
Sei social networks:
https://linktr.ee/seinetwork
*This post was first published on my Medium. If you want to see the original post, go to https://medium.com/@gonzalezweb3/sei-network-el-nasdaq-de-la-defi-1eac907007fa