Sei Network: A Technical Exploration of High-Performance Layer 1 and Parallel EVM

After the Sei Network went live on the mainnet in August 2023, it experienced a period of calm and has recently begun to show explosive growth. Its token price has continued to rise and reach new highs, with liquidity staking surpassing $3.5 million and the total locked value of the network reaching over $11 million.

Sei is about to undergo a very important V2 upgrade, aimed at improving parallel processing performance and introducing EVM. This article will analyze the code, technical features, and ecosystem projects of Sei Network, exploring the development potential of Sei and its ecosystem.

Design Features of Sei

As a Layer 1 public chain focused on trading, Sei provides a built-in Central Limit Order Book (CLOB) module. Developers can use this module to quickly launch and customize various order book trading applications, such as spot, derivatives, options, and more. Sei's parallelization design offers a fast, high-throughput network environment for 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. Other validators, upon receiving them, will first construct the block based on local mempool records. If the mempool lacks corresponding transaction information, validators will wait for subsequent blocks containing detailed transaction content to arrive for verification.

) 2. Parallel Transaction Processing

Sei Network implements validator parallel processing of pre-vote and pre-commit phases of blocks, thereby reducing latency and increasing throughput.

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

Sei implements parallel processing of multiple transactions through Golang's goroutine. However, this design currently struggles to handle a large number of transactions simultaneously, as processing thousands of transactions in parallel may lead to consistency issues. Therefore, Sei V2 needs further upgrades in parallel processing.

![High-Performance Layer 1 and Parallel EVM Dual Narrative: Analyzing Sei Network and Its Ecological Development]###https://img-cdn.gateio.im/webp-social/moments-174474fe5ab45c78935b4ebe3f475387.webp###

Parallel EVM

( What is Parallel EVM?

EVM is the virtual machine that processes smart contract-related transactions on Ethereum. To ensure network security, transactions in EVM need to be executed in sequence, which limits network performance. The concept of parallel EVM has emerged, aiming to allow different transactions in EVM to occur simultaneously, improving processing speed and network throughput.

The current solution is to use high-performance new public chains like Solana, Aptos, and Sei that are EVM-compatible. Among them, Sei's parallel EVM is the most关注 in the market.

) Sei V2 upgrade

Sei plans to launch version V2 in 2024, implementing parallel EVM, supporting the operation and interaction of Cosmwasm and EVM smart contracts. Key points of the V2 upgrade include:

1. Optimistic concurrency: Allows concurrent transaction processing, improving throughput and efficiency.
2. EVM Compatibility: Supports deploying existing EVM smart contracts on Sei.
3. Geth Compatibility: Sei nodes will 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, high throughput of 28,300 batch transactions per second.

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.

![High-performance Layer1 and Parallel EVM Dual Narrative: Analyzing Sei Network and Its Ecological Development]###https://img-cdn.gateio.im/webp-social/moments-83de708c29ad38074af0cae1ae89bfe1.webp###

Sei Contract Security Recommendations

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

1. Develop a contingency plan to respond to attacks and build scalable smart contracts.
2. Pay attention to the deserialization of addr types and perform validation.
3. Pay attention to operations and overflow issues, using CosmWasm's Uint256 and Uint512 types.
4. Avoid infinite loops, especially in cases where the ACK handler calls itself.

Sei Ecosystem Overview

( 1. Wallet

Currently, the wallets supporting the Sei network include dedicated wallets such as Compass Wallet and Fin Wallet, as well as compatible wallets like OKX Wallet, Keplr, and Leap Wallet.

Security Recommendations:

• Use wallet projects that have been audited and have a long runtime.
• Safeguard your mnemonic phrases and private keys.
• Carefully check the transaction information before signing the transaction.

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( 2. Kryptonite

Kryptonite is the largest liquid staking protocol in the Sei ecosystem, allowing users to stake Sei tokens to earn stSei and generate annual returns. The project has completed contract audits to enhance the security of the staking business.

The future Kryptonite project plans to launch the kUSD stablecoin, allowing users to mint it by collateralizing assets such as Sei, BTC, ETH, and others.

![High-Performance Layer 1 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 DeFi services such as trading, liquidity mining, and Launchpad. It is currently in the testnet phase and has launched an airdrop incentive program.

![High-performance Layer1 and parallel EVM dual narrative: Analysis of Sei Network and its ecological development])https://img-cdn.gateio.im/webp-social/moments-c2f45e32d5b434dec1a75ec6f638f349.webp###

( 4. PalletExchange

PalletExchange is the NFT trading platform of the Sei ecosystem, with a daily trading volume reaching up to 1.23 million Sei. The platform charges a 2% fee on NFT transactions.

The Sei ecosystem's popular NFT series includes WeBump, The Colony, Seiyans, Seinsei, and others. Users should be aware of the liquidity risks associated with the relevant 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

Sei, as a high-performance Layer 1 focused on trading, improves performance by optimizing the block generation and processing process. The Sei ecosystem is rapidly developing, and various decentralized applications will continue to amplify Sei's high-performance advantages. With the continuation of the parallel EVM narrative, the upgrade of Sei V2 is expected to address current bottlenecks and attract more market attention and developer participation.