Analysis of the Technical Features and Ecological Development of the Sei Network

Sei Network has begun to show strong development momentum after several months of silence, with its token price continuously rising and reaching an all-time high. Currently, Sei's liquid staking has exceeded 3.5 million USD, and the total locked value of the network has surpassed 11 million USD. The network is about to undergo an important V2 upgrade aimed at improving parallel processing performance and introducing EVM support.

Design Features of Sei

As a Layer 1 blockchain focused on trading, Sei offers a built-in Central Limit Order Book (CLOB) module. Developers can leverage this module to quickly build various order book trading applications, such as spot, derivatives, and options trading. Sei employs a parallelized design, providing a high-speed, high-throughput network environment for its ecosystem applications.

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

1. Local Hash Building: Validators can send blocks to the network that contain only transaction hashes, while other validators construct blocks based on records from the local memory pool, improving efficiency.

2. Parallel transaction processing: Validators can process blocks in the pre-vote and pre-commit stages in parallel, reducing latency and increasing throughput. For non-related transactions, Sei adopts a parallel processing approach; whereas related transactions are processed sequentially.

Parallel EVM

The concept of parallel EVM aims to break through the limitations of traditional EVM's sequential execution, allowing different transactions to be processed simultaneously, thereby significantly enhancing the processing speed and network throughput of the EVM. The Sei V2 upgrade will implement parallel EVM, supporting the operation and interaction of Cosmwasm smart contracts and EVM smart contracts.

Key points of the Sei V2 upgrade include:

1. Optimistic Concurrency: Allows concurrent transaction processing, significantly improving throughput and efficiency.
2. EVM Compatibility: Supports the deployment of existing EVM smart contracts without the need to modify the code.
3. Geth Compatibility: Integrating Geth to handle EVM smart contract transactions.
4. SeiDB: Improve storage layer, enhance read and write performance and scalability.
5. Performance Improvement: Expected to achieve a block time of 390 milliseconds and a throughput of 28,300 batch transactions per second.

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 characteristics of addr type deserialization and perform appropriate validation.
3. Be aware of integer overflow risks and use safe mathematical functions.
4. Avoid possible infinite loops in the ACK handler.

Sei Ecosystem Overview

1. Wallets: Currently, there are multiple wallets that support the Sei network, including dedicated wallets like Compass Wallet and Fin Wallet, as well as compatible wallets like OKX Wallet and Keplr.

2. Kryptonite: The largest liquid staking protocol in the Sei ecosystem, providing Sei token staking services with an annualized yield of approximately 5.54%.

3. YakaFinance: Committed to building a multifunctional DEX, providing trading, liquidity mining, and other DeFi services. Currently in the testnet phase, it has attracted over 15,000 users to participate in testing.

4. PalletExchange: The NFT trading platform of the Sei ecosystem, with a daily trading volume reaching approximately $1 million. The platform charges a 2% trading fee.

Summary

Sei Network, as a high-performance Layer 1 blockchain focused on trading, has achieved significant performance improvements through optimizing the block generation and processing process. With the rapid development of the ecosystem, various decentralized applications will further leverage Sei's high-performance advantages. The upcoming V2 upgrade is expected to address current technical bottlenecks, attracting more developers and users into the Sei ecosystem. With the implementation of parallel EVM technology, Sei is expected to make breakthroughs in blockchain performance and compatibility, laying a solid foundation for its future development.