Sei Network, As Good As It Looks?

Very good readers, in this article we will try to offer a summary of one of the next blockchains that are about to arrive in the crypto space ‘Sei Network’, a blockchain that is much talked about and which seems to have great potential for DeFi, we will try not to go into too many technicalities to make it simple, I hope you enjoy the reading, let’s go there!

Sei is a project that is working on becoming the base layer for financial apps and institutions for Cosmos and all Crypto. They recently raised $5 million from investors including Multicoincap, Coinbase, and Delphi_Digital.

Sei is trying to become the best layer 1 for DeFi apps. This means that they are building an order matching engine into the chain itself and every app built on top can use it. Sei is using the Cosmos SDK, which means that it will be IBC compatible. Sei will help decentralized finance (DeFi) apps in three main ways:

➖ By having a built-in order book.

➖ Being incredibly fast.

➖ Having frontrunning protection.

The Centralized Limit Order Book (CLOB) is unique to Sei and will allow dApps to build on top of it. This will be a helpful alternative to the AMM model. Other L1 chains process DeFi orders one at a time which makes them slow, Sei’s DeFi apps are faster because they bundle orders together and can process a lot of transactions at the same time, this makes it good for trading things like sports bets and options. Right now, there is no good place for apps to be built that need an order book, Sei can fill that need.

Sei also have a system that helps to prevent frontrunning and MEV (market execution value) disruptions on the best DeFi apps, this is done by frequent batch auctioning, which makes it difficult for MEV and frontrunning to occur. By making it difficult for MEV and frontrunning to occur, Sei makes it possible for DeFi apps to scale and take a meaningful part in traditional financial markets.

Their team includes members who have participated in the development of Cosmos, and corporate members from Goldman Sachs.

In Summary

Sei is going to become a Cosmos-based L1 focused on building a platform for financial apps and institutions. By building an order book into the infrastructure, dApps will have the built-in speed and scalability necessary for DeFi that other L1s don’t offer. dApps will likely join Sei to build in the Cosmos without requiring their own chain.