Understanding Sei’s Mission: Building the Best Infrastructure for Exchanges
Hello, Seilors!
Cryptocurrencies and blockchain technology require efficient and secure digital asset exchange.
Sei Labs has developed Sei, a Layer 1 blockchain designed specifically for trading, aiming to drive Web3 adoption.
And my article explain features and advantages of Sei Network to understand “Why Sei is the best infrastructure for exchanges?”.
Sei is an open-source high-perfomant Layer 1 blockchain built to tackle the scalability problem faced by trading apps. It optimizes every layer of the stack, providing the best infrastructure for trading apps and exchanges. With a focus on trading functionality, Sei outperforms other Layer 1 blockchains, offering a unique value proposition.
Why trading is so important?
With the expansion of the Web3 ecosystem, trading will become even more significant. The increasing number of digital assets requires efficient exchange platforms. Additionally, regulatory pressure on centralized exchanges (CEXs) will likely drive more on-chain volume.
To meet this demand, trading apps must scale and provide a seamless user experience, leading to exponential growth alongside the industry.
Fastest Time to Finality and Parallelization
Sei boasts industry-leading speed, with a time to finality as low as 300 milliseconds.
Its built-in parallelization (fig. 1) enhances its infrastructure for trading functionality. Using Twin-Turbo consensus, Sei achieves unparalleled performance levels, revolutionizing trading experiences.
Built-in Matching Engine and Front-Running Prevention
Sei provides a built-in innovative matching engine (OME short for Order Matching Engines), allowing trading apps to execute orders efficiently. It also addresses front-running concerns in decentralized exchanges (DEXs) with front-running prevention mechanisms. These features give Sei-based trading apps a competitive edge and enhance the user experience.
Sei’s OME is natively integrated into the blockchain infrastructure, allowing exchanges to easily utilize it without the need for forking or implementing smart contracts.
Sei’s OME combines Frequent Batch Auctioning (FBA) with Single Block Order Execution. FBA aggregates all market orders at the end of each block and executes them at a uniform clearing price.
Additionally, Sei collapses order placement and execution into a single block, resulting in faster trading experiences. Regardless of the transaction order, all participants within the block time (around 450 ms) receive the same price.
Automatic Order Bundling Capability
Sei enhances app throughput and user experience with its automatic order bundling capability. By bundling multiple orders, Sei improves the efficiency of order processing and execution, ensuring faster and more reliable trading experiences for users.
Conclusion
Sei’s focus on optimizing trading infrastructure makes it the fastest Layer 1 blockchain for trading.
With its superhighway speed, built-in matching engine, front-running prevention, and automatic order bundling capability, Sei provides trading apps and exchanges with the necessary tools to excel in the evolving Web3 ecosystem.
Join Sei community:
Discord: https://discord.gg/sei
Twitter: https://twitter.com/SeiNetwork
Sei testnet: https://edge.blocked.cc/products/1
Sei Blog: https://blog.sei.io/
