Sei Network Analysis and Ecological Development Prospects

After several months of silence, SeiNetwork has started to explode, with its token price continuously rising sharply, reaching an all-time high. Currently, Sei's liquid staking has surpassed $3.5 million, and the network's TVL has exceeded $11 million. Sei is about to undergo a very important V2 upgrade, which will enhance parallel processing capabilities and introduce EVM. This article will analyze the technical features and ecological projects of Sei Network, exploring its potential opportunities.

Sei Design Features

Sei, as a Layer 1 that supports order book activities and focuses on trading, provides a built-in Central Limit Order Book (CLOB) module. Developers can quickly launch and customize various order book trading applications using Sei's built-in order module, while Sei's parallel design offers a fast and high-throughput network for its ecosystem applications.

Sei improves the processing speed of the blockchain network in the following ways:

1. Local build hash

Sei allows validators to send blocks to the network that only contain transaction hashes. When other validators receive these blocks, they will first construct the block based on the records in their local memory pool. If the memory pool does not contain the corresponding transaction information, the validator will wait for subsequent blocks that include detailed transaction content to arrive for verification.

2. Parallel Transaction Processing

Sei Network implements the parallel processing of validators during the pre-vote and pre-commit phases of blocks, reducing latency and increasing throughput. In the code implementation, Sei processes uncorrelated transactions in parallel, while correlated transactions are processed sequentially.

Currently, this design makes it difficult to process a large number of transactions in parallel, which may lead to consistency issues. Therefore, Sei V2 needs to continue upgrading its parallel processing capabilities.

Parallel EVM

Parallel EVM Concept

EVM is the virtual machine that processes smart contract-related transactions on Ethereum, and to ensure network security, EVM transactions must be executed sequentially. The design of parallel EVM will allow different transactions within the EVM to occur simultaneously, greatly increasing processing speed and network throughput. The current solution is to use a high-performance new public chain that supports parallel transactions and is compatible with EVM, among which Sei's parallel EVM is the most关注 in the market.

SeiV2 upgrade

The upcoming V2 version of Sei will implement parallel EVM, supporting the operation and interaction of Cosmwasm and EVM smart contracts. The main upgrade points include:

1. Optimistic concurrency: Allows concurrent transaction processing to improve throughput and efficiency.
2. EVM Compatible: Supports the deployment of existing EVM smart contracts without the need to change the code.
3. Geth Compatibility: Integrate Geth to handle EVM smart contract transactions.
4. SeiDB: Improved storage layer to enhance read and write performance and scalability.
5. Performance Improvement: 390 milliseconds block time, 28,300 batch transactions per second, lower transaction costs.

The Sei v2 upgrade will integrate the advantages of Ethereum, providing an optimized execution layer that is fully compatible with the existing EVM ecosystem, attracting more users and developers.

Sei Contract Security Recommendations

For developers planning to build applications in the Sei ecosystem, it is recommended to follow the security practices below:

1. Build upgradeable smart contracts and develop risk response plans.
2. Pay attention to the addr type deserialization and verification.
3. Use the Uint256 and Uint512 types of CosmWasm to avoid integer overflow.
4. Prevent infinite loops in the ACK handler.

Sei Ecosystem

1. Wallet

Currently, the wallets specifically supporting the Sei network are Compass Wallet and Fin Wallet. There are 14 wallets compatible with the Sei network, including OKX Wallet, Keplr, and Leap Wallet.

Security Recommendations:

• Avoid using wallet projects that are unaudited and have a short runtime.
• Safely store your mnemonic phrases and private keys.
• Carefully check the transaction information before signing the transaction.

2. Kryptonite

Kryptonite is the largest liquid staking protocol in the Sei ecosystem. Users can stake Sei tokens to earn stSei, earning an annualized yield of 5.54%. The platform also supports the staking of LP tokens for Seilor/Sei and stSei/SEIYAN. Kryptonite plans to launch the kUSD stablecoin, allowing users to mint it by collateralizing assets like Sei, BTC, ETH, and provide more liquidity to the Sei ecosystem.

3. YakaFinance

Yaka Finance is committed to building a multifunctional DEX, providing DeFi services such as trading, liquidity mining, and Launchpad. It is currently in the testnet phase and has launched an airdrop incentive program, attracting over 15,000 users to participate in the testing.

4. PalletExchange

PalletExchange is the NFT trading platform of the Sei ecosystem, with a daily trading volume reaching up to 1.23 million Sei (approximately 1 million USD). The platform charges a 2% fee on NFT transactions. Currently, notable NFT series in the Sei ecosystem include WeBump, The Colony, Seiyans, Seinsei, and others. Users should be aware of the liquidity risks associated with the relevant NFTs.

Summary

Sei, as a high-performance Layer 1 focused on trading, has optimized block generation and processing. The Sei ecosystem is rapidly developing, forming a synergistic effect with Sei. Various decentralized applications will continue to amplify Sei's high-performance advantages, while Sei will also attract more liquidity and users. As the parallel EVM narrative continues, the Sei V2 upgrade will address current bottlenecks, attracting more market attention and developers to join the ecosystem.