What is Sei (SEI)?

Speed, efficiency, and user experience are more crucial than ever in the crypto world. Building on these very needs, Sei (SEI) stands out as a high-performance layer-1 blockchain network built from the ground up for decentralized finance (DeFi) applications. Specifically targeting order-book blockchain applications, the Sei network stands out with its capacity of up to 20,000 transactions per second and a block time of approximately 300 milliseconds. Built on the Cosmos SDK, this network offers a secure and fast infrastructure thanks to Tendermint consensus. The development team aims to bring the speed and efficiency needs of traditional financial markets to the blockchain, making Sei an ideal platform for DeFi projects, NFT applications, and on-chain games. The SEI token, the network's native cryptocurrency, is actively used in transaction fees, staking, and governance processes. If you're wondering, "What is Sei?", "What is Sei coin?", or "What is Sei token used for?" If questions like these are on your mind, in this guide, we will explore in detail what the Sei network is, who owns Sei coin, what its release date is, and what its future holds.

Definition and Origins of Sei

Sei (SEI) is a high-speed and powerful layer-1 blockchain network specifically developed for decentralized finance (DeFi) applications. Its native cryptocurrency is also commonly known as SEI coin. Built on the Cosmos SDK infrastructure, Sei incorporates a specialized version of the Byzantine Fault Tolerant (BFT) consensus engine called Tendermint Core. Thanks to this architecture, blocks can be generated in a very short time of approximately 300 milliseconds, and the network can theoretically offer a transaction capacity of up to 20,000 transactions per second. This entire system is specifically optimized for decentralized exchanges and derivative platforms operating on an order book model. Sei's development team aimed to create a brand new solution by combining the speed and efficiency of traditional finance with blockchain technology. This has led to the emergence of a DeFi network that offers a robust and effective infrastructure for both individual users and institutional projects.

As a blockchain focused on DeFi, the Sei network was developed to address long-standing challenges in the crypto world, such as scalability and speed, from a fresh perspective. The "exchange trilemma"—the difficulty of balancing decentralization, scalability, and capital efficiency—a common problem particularly encountered in platforms with high transaction loads, such as decentralized exchanges, was one of the primary motivations for Sei's creation. Combining high transaction throughput with low latency was a key goal in the network's design.

To achieve this goal, Sei has been equipped with various technical improvements to the block generation and processing processes. In particular, thanks to a special architecture called Twin-Turbo consensus, the network combines both intelligent block propagation and optimistic block processing. This allows validators to process transactions much faster, significantly reducing block times. As a result, the Sei network achieves a very fast and efficient blockchain structure that can respond in milliseconds, not seconds.

Because Sei is built on the Cosmos SDK, it inherits its security and network structure from the Tendermint consensus system. However, the block time, which typically reaches around 6 seconds in traditional Tendermint, has been reduced to milliseconds thanks to Sei's innovative architecture. This difference is one of the clearest indicators of the network's speed. The project was founded in 2022 under the umbrella of Sei Labs, established in California. The team includes highly experienced individuals: Jayendra (Jay) Jog, a software developer who previously worked as an engineer at Robinhood, and Jeffrey Feng, with his investment banking background at Goldman Sachs, brings strategic vision to the project. Dan Edlebeck, known for his work in the Cosmos ecosystem, also serves as the founding team.

Throughout 2022, the project took shape from both a technical and community perspective. The development team launched the first testnets, established the technical infrastructure, and grew the community with early-stage participants. The Sei mainnet (v1) then went live in 2023. At the time, major investors such as Multicoin Capital, Delphi Digital, and Coinbase Ventures supported the project, enabling Sei to reach a wider audience. Developed open-source from the outset, the network adopts the community governance approach unique to the Cosmos ecosystem. This means SEI token holders have a say in important network decisions and can vote on protocol changes.

Sei's History: Key Milestones

The Sei network has come a long way in a short time since 2022. The development team has achieved steady growth not only technically but also in the community. Below, you can see the key milestones, from Sei's initial testnet to its listing on major exchanges, from EVM compatibility to ecosystem expansion:

• 2022: The Sei Network's first testnet phases began. During this period, incentivized testnets like "Atlantic" and the community program "Seinami" helped establish both early adopters and a developer ecosystem. In August, Sei Labs received a $5 million seed investment, significantly accelerating the project. 2023: After intensive testing, Sei's mainnet, Sei v1, went live on August 15, 2023. The network's integration with the mainnet and Cosmos Hub was completed, bridges were activated, and users were now able to stake SEI tokens.
• August 2023: The SEI token reached a wide audience by being listed on leading exchanges such as Binance, Coinbase, and Bybit. With these listings, Sei, previously known only within the technical community, now entered the radar of a wider user base.
• 2024: The development team announced Sei's next version, Sei v2. This new version integrates EVM (Ethereum Virtual Machine) support into the network and further enhances its parallel transaction processing capabilities. The public testnet went live in early 2024, with the mainnet update targeted for completion by mid-year. Thus, Sei took a significant step toward becoming the "first parallel EVM blockchain." The differences between SEI v1 and v2 can be illustrated as follows:

Feature	Sei v1	Sei v2
Release Date	August 2023	2024 (testnet: Q1, mainnet: planned for Q2/Q3)
Consensus Mechanism	Tendermint Core	Optimized Tendermint + Parallel Execution Engine
Block Time	~300 milliseconds	Same (more consistent performance via optimizations)
Transaction Throughput (TPS)	~20,000 (theoretical)	Similar TPS, but more efficient with parallel processing
Parallel Execution Capability	Limited (basic level)	Yes – full parallel execution supported
EVM Compatibility	No	Yes – can run Ethereum smart contracts
Virtual Machine (VM)	CosmWasm	CosmWasm + Ethereum Virtual Machine (EVM)
Developer Experience	Cosmos ecosystem focused	Compatible with Ethereum developer tools
Order Book Application Support	On-chain Central Limit Order Book (CLOB)	On-chain CLOB (enhanced logic + EVM compatibility)
Frontrunning Protection	Frequent Batch Auction (FBA)	FBA + improved transaction ordering
IBC (Cosmos Interoperability)	Supported	Under debate – proposal to remove Cosmos support submitted

• 2025: The Sei ecosystem expanded rapidly. Many projects in areas such as DeFi, NFTs, and blockchain-based games became active on Sei. For example, Astroport became one of the first decentralized exchanges to launch on the network, while well-known protocols like Sushi also integrated into the Sei network. More than 200 projects operated on Sei, and the total asset value locked (TVL) exceeded $500 million.

Why Is Sei Valuable?

After exploring all the technical details about the Sei network, the most natural question that comes to mind is: "So why do all these features make it so special?" This is where the many details that distinguish Sei from other layer-1 blockchains, both technically and in terms of user experience, come into play. Equipped with innovations such as high transaction speed, a parallel transaction architecture, and a built-in order book infrastructure, Sei offers a strong foundation not only for DeFi projects but also for a wide range of applications, from NFTs to on-chain games. Below, let's examine each of the fundamental building blocks that make Sei so valuable.

High speed and efficiency

Sei reduces block generation time to approximately 0.3 seconds, completing transactions almost instantaneously. It can theoretically reach an impressive 20,000 transactions per second. This speed is a significant advantage, especially for high-frequency traders and high-throughput applications. For comparison, in terms of finality time, it is almost twice as fast as next-generation chains like Sui and 1.5 times faster than Aptos.

Parallel Transaction Processing

The Sei network features parallel execution. When appropriate, it can process transactions simultaneously, in parallel. Only transactions affecting the same data are executed sequentially. This reduces transaction times on the blockchain and increases overall transaction throughput. Thanks to this structure, applications running on Sei deliver smoother and more efficient results, as if they were running on a multi-core computer.

Order Book Infrastructure

Sei features an embedded order matching engine at the protocol level. This allows decentralized applications to operate directly on-chain using a central limit order book (CLOB) model. Instead of AMM-based structures like other chains, real-time buyer and seller orders are matched directly on-chain. This reduces both slippage and temporary liquidity issues. It also makes Sei much more resilient to MEV-based sandwich attacks. Compared to other major DEXs, SEI can be compared as follows:

Feature / Project	Sei (Sei DEX)	Serum (Solana)	dYdX (StarkEx v3)	Injective
Chain Type	Layer-1	Layer-1	Layer-2 (StarkEx)	Layer-1 (Cosmos SDK)
Order Book Type	On-chain	Off-chain	Off-chain	On-chain
Block Time	~300 ms	~400 ms	~600 ms	~1 second
TPS (Transactions per Sec.)	~20,000	~50,000	~9,000	~10,000+
Frontrunning Protection	Yes (FBA)	Partial (off-chain risk)	Yes (off-chain controlled)	Yes (frequent auction)
Parallel Execution Support	Yes	Yes	Limited	Yes
EVM Compatibility	Yes (via Sei v2)	No	No	No

Structure Preventing Frontrunning

The Sei network prevents frontrunning attacks by processing orders in bulk at the end of a block. This approach is supported by a system called "Frequent Batch Auction (FBA). This prevents any bot or validator from gaining unfair advantage by taking positions before market entry. Because all orders are matched simultaneously at a single price, trading occurs on a much fairer basis.

Full Compatibility with the Cosmos Ecosystem

Because Sei is part of the Cosmos ecosystem, it supports the IBC (Inter-Blockchain Communication) protocol. This allows Sei to communicate directly with other blockchains, such as Osmosis or Cosmos Hub, and transfer assets. This interoperability allows assets mined on Sei to be easily moved to other chains. It can also be seamlessly used with popular Cosmos wallets like Keplr.

However, it's worth noting that, according to a community proposal that emerged in May 2025, one of the Sei developers proposed discontinuing the network's Cosmos support. The goal of this proposal is to reduce the technical complexity created by the current CosmWasm + EVM architecture and simplify the developer experience by making Sei only compatible with Ethereum. If this transition occurs, Sei will only support EVM-based transactions, and Cosmos features will largely be shelved. However, according to statements from Interchain Labs, Sei will technically remain Cosmos-based, and some core features (e.g., staking and governance) will remain available.

SEI Token Uses

The SEI token, the network's native asset, plays a crucial role in both the operation of the technical infrastructure and maintaining economic order. SEI can be used to pay transaction fees and make transfers at low cost. Users can stake their tokens to support validators, contribute to the security of the network, and earn rewards in return. It's also possible to have a say in governance processes; SEI holders have the right to vote on protocol updates or significant changes. It can also be used as collateral in DeFi applications and provide liquidity. SEI is also among the top 100 coins by value.

A robust and balanced token economy

The total supply of the SEI token was set at 10 billion units. Approximately 18% of this supply (1.8 billion SEI) entered circulation in the initial phase. To ensure a community-focused launch, the project distributed 3% of the total supply as an airdrop to testnet users and select chain communities. The remaining supply was allocated to the development team, investors, ecosystem incentives, and community reserves. This balanced distribution ensures network security and creates a sustainable economic structure for long-term growth.

Who is the Founder of Sei?

Sei Network was founded in California in 2022. The team behind the project includes three experienced individuals from the traditional finance and software worlds: Jayendra “Jay” Jog, Dan Edlebeck, and Jeffrey Feng. Jay previously worked as a software engineer at Robinhood, and Dan is one of the founders of Exidio, a decentralized VPN project operating within the Cosmos ecosystem. Jeffrey Feng, with his background at Goldman Sachs, made a strong contribution to the project in terms of financial strategy. By combining technical knowledge and financial vision, the trio aimed to create a brand-new blockchain infrastructure under the Sei Labs umbrella.

From its inception, the project chose a different direction from traditional centralized structures. Its governance approach is based on community participation. Because the Sei network is developed with open source code, developers from around the world can contribute to the project. Decisions regarding the network's future are made by the votes of SEI token holders. This means users become part of a community that not only transacts on the network but also has a voice. This makes Sei an ecosystem that grows alongside its users.

The dedicated efforts of both the founding team and the community have played a significant role in Sei's success to this point. Since the mainnet launch, the system has been operating stably, and the development team is constantly taking new steps to further improve performance. Equipped with innovations such as high speed, parallel transaction capabilities, and an order book infrastructure, Sei opens the door to many new projects not only in terms of technical aspects but also with the opportunities it offers. More applications in areas like DeFi, NFTs, and gaming are expected to be deployed on the Sei network in the coming period. Considering all these developments, a very promising picture emerges for the future of Sei coin.

Frequently Asked Questions (FAQ)

Below are some frequently asked questions and answers about SEI:

• What is the Sei network and how does it work?: The Sei network is a high-speed blockchain platform built on the Cosmos SDK as its technical infrastructure and uses the Tendermint BFT consensus mechanism. The network operates according to the Delegated Proof-of-Stake (DPoS) model; that is, specific validators verify transactions with SEI tokens staked by users. Thanks to special improvements called Twin-Turbo consensus, transactions are finalized in a very short time of ~300–400ms, and efficiency is maximized with parallel processing. In short, the Sei network is a fast and scalable blockchain secured by validators worldwide.
• What is the SEI token used for?: The SEI token is the native cryptocurrency of the Sei network and is used for various purposes. First, gas fees for transfers and smart contract transactions on the network are paid in SEI. Users can also contribute to the security of the network by staking their SEI (delegating it to a validator on the network) and earn rewards in return. The SEI token is also part of the governance mechanism; token holders have a say by voting on important network updates or protocol changes. Additionally, SEI can be used as collateral in some DeFi protocols and plays a role in paying transaction fees on decentralized exchanges built on Sei.
• What are the differences between Sei and chains like Solana and Sui?: While Sei shares a similar goal with high-performance chains like Solana and Sui—to provide a fast and scalable infrastructure—their technical approaches differ. Solana is a singleton chain running on a Proof-of-History mechanism and is known for processing thousands of transactions per second; however, Solana is not directly compatible with the Cosmos ecosystem. Sui, on the other hand, is a new blockchain network that uses the Move programming language and offers object-oriented parallel processing capabilities. Built on the Cosmos SDK, the Sei network combines both Tendermint-based BFT security and parallel processing capabilities. Sei not only achieves speeds as high as Solana, but also offers a protocol-level order book infrastructure, making it particularly prominent in trading applications. Furthermore, thanks to its IBC compatibility, Sei can communicate directly with other blockchains, unlike Solana and Sui, giving Sei a significant advantage in inter-ecosystem interactions.
• Is the Sei network Cosmos-based?: Yes. The Sei network is built on the Cosmos SDK and uses the Tendermint BFT consensus algorithm. Therefore, it is technically part of the Cosmos ecosystem. Indeed, thanks to the Inter-Blockchain Communication (IBC) protocol, Sei can communicate and transfer assets in a manner compatible with other Cosmos-based chains.
• What types of applications are being developed on the Sei network?: Decentralized finance (DeFi) applications are the most frequently developed on the Sei network. Decentralized exchanges (DEXs) and derivatives trading platforms that use an order book model are particularly prominent. For example, Astroport launched as the first major DEX on Sei. Furthermore, thanks to the network's high transaction capacity, NFT marketplaces and blockchain-based gaming projects are also emerging within the Sei ecosystem. Transactions like in-game asset buying and selling or NFT minting can provide users with a seamless experience thanks to Sei's fast infrastructure.
• How to stake SEI: To stake SEI, you first need to transfer your SEI tokens to a supported wallet (e.g., a Cosmos-compatible wallet like Keplr). Then, you can delegate by selecting one of the network's validators through your wallet app or the Sei network's block explorer. This means you lock your SEI assets to a validator of your choosing and delegate your voting rights to them. This way, you both secure the network and earn staking rewards. However, keep in mind that staked assets on Cosmos networks typically have an unbonding period of 14–21 days for withdrawal; you cannot immediately unstake and spend your tokens during this period.

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