Everything You Need to Know About the Dedicated Layer 1 Sei: Native Order Matching Engine, Dual-Turbo Consensus, and Ecosystem Protocols
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Everything You Need to Know About the Dedicated Layer 1 Sei: Native Order Matching Engine, Dual-Turbo Consensus, and Ecosystem Protocols
Looking forward to seeing Sei making waves in Cosmos' DeFi world.
Navigating Web3 tides with focused insights
Author: Emperor Osmo
Compiled by: TechFlow
Sei is the first dedicated Layer 1 blockchain supporting order book trading, designed to create a reliable, secure, and high-throughput environment.
DEXs are the most widely adopted applications in crypto, but there are problems:
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DEXs adopt a "one-size-fits-all" approach;
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Network congestion prevents order execution;
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Overall performance is generally slow;
How does Sei improve upon this?
Sei is shifting the narrative from building general-purpose chains to market-specific ecosystem chains.
Most L1s fall into two categories:
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General-purpose (composable and coordinated): $SOL and $ETH;
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Application-specific (highly customizable/interoperable): $DYDX and $OSMO;
Sei Network is known as the decentralized NASDAQ due to two key features:
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Native order book matching engine
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Dual-turbo consensus
Native Order Matching Engine
As an L1, it enables customizable designs for DEXs, such as chain-specific order books. The benefit is that innovative new products can emerge organically from within.
DApps built on Sei will benefit from:
- Built-in order books;
- Fast execution;
- Shared liquidity models;
Dual-Turbo Consensus
To enhance functionality and optimization, Sei has modified how blocks are propagated and processed.
Let's analyze both aspects and their importance to Sei’s mission:
- Smart block propagation;
- Optimistic block processing;
Smart Block Propagation
In current setups, validators propose a block and then send its hash and content to other validators, causing unnecessary waiting. Sei changes this by allowing local construction of transaction hashes instead of waiting. By eliminating this inefficiency, Sei improves throughput by 40%.
Optimistic Block Processing
Currently, when a block is proposed, validators actually wait before processing it.
Sei changes this by fetching blocks at any given height. Validators can parallelize processing during pre-vote and pre-commit stages. This change reduces latency and increases throughput by 33%.
These two changes are significant for building a scalable, fast, and reliable DeFi-centric chain. For comparison, Sei achieves transaction finality in approximately 600ms.
Sei isn't just the fastest blockchain—it also effectively prevents MEV.
Instead of executing transactions one by one, trades can be batched and processed at the same price at the end of each block, preventing frontrunning.
This is key to returning value to validators and the community. That's why Sei partners with Skip to further maximize market efficiency.
Sei also closely monitors emerging tech projects under development. So far, Sei partnerships have grown explosively, with many technical collaborations soon to be announced—more applications are coming to Sei.
Which Partnerships / Upcoming Applications Should We Watch?
Vortex Protocol, a perpetual exchange offering IBC interoperability, recently announced a fully decentralized stablecoin called $UXD.
Pharaoh, enabling synthetic asset trading on SEI. Pharaoh will leverage Sei’s composability to enable new methods of commodity trading.
Axelar brings cross-chain liquidity into Cosmos, making external liquidity more accessible to Sei.
White Whale, an application creating arbitrage opportunities for users benefiting from SEI’s order books.
Finally, one of the most important developments comes from an external ecosystem chain.
Nitro, Solana’s first Layer 2 scaling solution, acts as a gateway between Solana and Cosmos. This opens a new world of liquidity for the SEI community.
Of course, Sei isn’t stopping here. It continues building—both technically and through partnerships—aiming to deliver a perfect experience for real users. Expect Sei to make waves in Cosmos’ DeFi landscape.
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Emperor Osmo
