Sei Network: A High-Performance Layer 1 with Dual Narratives of Parallel EVM

After SeiNetwork launched its mainnet in August 2023, it experienced a few months of dormancy before exploding, with its token price continuing to rise significantly and reaching an all-time high. Currently, Sei's liquid staking has exceeded $3.5 million, and the total locked value of the network has surpassed $11 million. Previously, Sei successfully held a hackathon that attracted numerous developers to participate.

This year, Sei will undergo an important V2 upgrade to enhance parallel processing performance and introduce EVM. This article will analyze the Sei Network's code, technical features, and ecosystem projects to help readers understand Sei and the potential opportunities within its ecosystem.

Sei Design Features

Sei, as a Layer 1 that supports order book activities and focuses on trading, offers a built-in Central Limit Order Book ( CLOB ) module. Developers can leverage Sei's built-in order module to quickly launch and customize order book trading applications for spot, derivatives, options, and more, while Sei's parallelization design provides a fast, 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 its validators to send blocks to the network that only contain transaction hashes. Other validators, upon receiving them, will first construct blocks 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 processes blocks in the pre-vote and pre-commit stages through validators in parallel. Parallel processing reduces latency and increases throughput.

In the code implementation, Sei will process transactions either in parallel or sequentially. For multiple related transactions, Sei will process them sequentially; for unrelated transactions, it will process them in parallel.

Currently, this design cannot handle too many transactions in parallel; processing thousands of transactions simultaneously may lead to consistency issues. Therefore, Sei V2 needs to continue upgrading in parallel processing.

![High-performance Layer1 and parallel EVM dual narrative: Analyzing Sei Network and its ecological development]###https://img-cdn.gateio.im/webp-social/moments-5b0decbe0c3e22d6509adf5df99ea55d.webp###

Parallel EVM

( What is Parallel EVM?

EVM is the virtual machine that processes smart contract-related transactions on Ethereum. To ensure network security, the transactions in EVM must be executed in sequence. Sequential execution avoids the complexity and conflicts of parallel execution, but it also limits network performance.

The design of parallel EVM will allow different transactions in the EVM to be processed simultaneously, significantly improving processing speed and network throughput. The current solutions involve using high-performance new public chains compatible with EVM, such as Solana, Aptos, and Sei. Among them, Sei's parallel EVM is the most关注 market.

) SeiV2 upgrade

Sei will implement parallel EVM in the upcoming V2 version in 2024, supporting the operation and interaction of Cosmwasm smart contracts and EVM smart contracts. Here are the key points of the Sei V2 upgrade:

1. Optimistic concurrency: Allows concurrent transaction processing, significantly improving throughput and efficiency. In case of state conflicts, transactions will be reprocessed in order to maintain data integrity.

2. EVM Compatibility: Allows developers to deploy existing EVM smart contracts on Sei without changing the code, simplifying the transition to Sei v2 and enhancing interoperability.

3. Geth Compatibility: Sei nodes will integrate Geth to handle transactions of EVM smart contracts in the future network, and any updates will be made through a special interface created by Sei for EVM.

4. SeiDB: Sei will improve its storage layer by using more efficient data structures and databases to reduce state bloat and enhance read/write performance, facilitating easier synchronization for new nodes and improving scalability.

5. Enhanced performance: With a block time of 390 milliseconds and fast transaction processing capabilities with finality, as well as a high throughput of 28,300 batch transactions per second, and lower transaction costs.

The Sei v2 upgrade will integrate the advantages of Ethereum and aims to provide a super-optimized execution layer that is fully compatible with the existing EVM ecosystem, attracting more users and developers to the Sei ecosystem.

![High-performance Layer1 and Parallel EVM Dual Narrative: Analyzing Sei Network and Its Ecological Development]###https://img-cdn.gateio.im/webp-social/moments-174474fe5ab45c78935b4ebe3f475387.webp###

Sei Contract Security Recommendations

If developers plan to build applications in the Sei ecosystem, they will use CosmWasm to construct smart contracts. It is recommended that developers follow the security practices below to enhance the contract security of their projects:

1. Be prepared to respond to attacks. Developers need to consider how to face attacks and fix vulnerabilities. Therefore, it is necessary to build upgradable smart contracts and develop a risk response plan.

2. Pay attention to the deserialization of the addr type. The addr type in CosmWasm is not validated during deserialization, which indicates that the addr type may have unexpected deserialization characteristics. Therefore, it is advisable to specify the type and perform validation after deserializing the addr.

3. Pay attention to calculations and overflow. In CosmWasm contracts, developers need to be aware of risks such as integer overflow or division by zero. It is recommended to use CosmWasm's Uint256 and Uint512 types, and to use the non-overflowing mathematical function full_mul().

4. Be aware of infinite loops. CosmWasm contracts may get trapped in an infinite loop by calling themselves back in the ACK handler. If developers are passing packets between two CosmWasm contracts, they should be aware that this may lead to infinite loops and consume a large amount of gas.

Sei Ecosystem

( 1. Wallet

Currently, the wallets that specifically support the Sei network are Compass Wallet and Fin Wallet. There are already 14 wallets compatible with the Sei network, such as OKX Wallet and the previously Cosmos ecosystem-supported wallets Keplr and Leap Wallet.

Security advice:

) We recommend users avoid using wallet projects that are unaudited and have not been running for long.

To protect the assets of your wallet, the most important thing is to pay attention to the safe storage of your mnemonic phrase and private key.

(3) During the process of interacting with the Sei project using relevant wallets, signing is one of the security risks that require the most attention. Users should verify that the transaction information is correct before signing the transaction, as hackers can trick users into using cosmos.bank.v1beta1.MsgSend to transfer tokens to the hacker's address.

( 2. Kryptonite

Kryptonite is the largest liquid staking protocol in the Sei ecosystem. Users can stake Sei tokens on its platform to receive stSei, earning an annual yield of 5.54%; currently, it is also possible to stake LP tokens of Seilor/Sei and stSei/SEIYAN to earn yields in the respective tokens.

Kryptonite will soon launch the kUSD stablecoin, allowing users to mint it by collateralizing assets such as Sei, BTC, and ETH, providing more liquidity for the Sei ecosystem.

![High-Performance Layer1 and Parallel EVM Dual Narrative: Analyzing Sei Network and Its Ecological Development])https://img-cdn.gateio.im/webp-social/moments-f46a7dbcdc72b4a4b3c0030e2f5694f4.webp(

) 3. YakaFinance

Yaka Finance is committed to building a multifunctional DEX, providing users with various DeFi services such as trading, liquidity mining, Launchpad, etc., aiming to become the liquidity center hub of the Sei ecosystem.

Yaka Finance is currently in the testnet phase and has launched an airdrop incentive program, attracting over 15,000 users to participate in its testing.

![High-Performance Layer 1 and Parallel EVM Dual Narrative: Analyzing Sei Network and Its Ecological Development]###https://img-cdn.gateio.im/webp-social/moments-c2f45e32d5b434dec1a75ec6f638f349.webp(

) 4. PalletExchange

Pallet Exchange is the NFT trading platform of the Sei ecosystem, currently reaching a daily trading volume of up to 1.23 million Sei (approximately 1 million US dollars). Pallet Exchange will charge a 2% fee on NFT transactions on its platform to maintain operation.

Currently, the NFT series that is gaining attention in the Sei ecosystem includes WeBump, The Colony, Seiyans, and Seinsei. Since the Sei ecosystem is in its early stages of development, users should be aware of the liquidity risks associated with related NFTs.

![High-Performance Layer 1 and Parallel EVM Dual Narrative: Analyzing Sei Network and Its Ecological Development]###https://img-cdn.gateio.im/webp-social/moments-79f2cd7120136f474a14dee5d879ab89.webp(

Summary

As a high-performance Layer 1 focused on trading, Sei has optimized the process of block generation and handling. Currently, Sei's ecosystem is rapidly growing, and its development will create a synergistic effect with Sei, where various decentralized applications will continue to amplify Sei's high-performance advantages, and Sei will also attract more liquidity and users. With the continuation of the parallel EVM narrative, the upgrade to Sei V2 will address the current bottlenecks of Sei, attracting more market attention and more developers to enter the Sei ecosystem.

![High-Performance Layer 1 and Parallel EVM Dual Narrative: Analyzing Sei Network and Its Ecological Development])https://img-cdn.gateio.im/webp-social/moments-f29abafdf5312108b47132d88d729241.webp###