What Actually is SEI V.1?
Sei is a general purpose, open-source Layer 1 blockchain specialized for the exchange of digital assets. Leveraging a novel consensus and technical breakthroughs, Sei is the fastest blockchain in the industry. SEI has claimed that their blockchain has fast transaction speeds, allowing it to accommodate a large number of transactions conducted by users. The Sei (SEI) Network is a Cosmos-based layer-1 blockchain that aims to change the world of digital asset trading, especially in the decentralized exchange (DEX) ecosystem. As SEI Network is built using the COSMOS SDK (Software Development Kit), it inherits the characteristic of “Interoperability” from Cosmos. This enables SEI Network to interact with other blockchains.
According to Sei Network, they are currently facing a problem known as the Exchange Trilemma, which includes decentralization, scalability, and capital efficiency, or what we can refer to as adequate liquidity. In Sei Network V.1, they aim to create a protocol specifically designed for trading by enhancing all three aspects simultaneously because, usually, cryptocurrency exchanges can only cover at most two out of the three aspects. Sei Network sees this as a great opportunity to build a protocol that can solve these issues comprehensively with the goal of broadening cryptocurrency adoption and reaching all segments worldwide. If the Exchange Trilemma issue is addressed, people will no longer need to fear putting their money into cryptocurrency because all three aspects will be fully met.
Then What is SEI V.2?
Why did Sei Network V.1 fail to attract users to join and use the Sei blockchain? This is largely due to Sei Network giving a negative impression by providing inadequate rewards to those who contributed to the development of its community.
After recognizing this, Sei Network then decided to regroup and rectify its mistakes. They opted to pivot and introduce a new breakthrough called Sei v2. What exactly is Sei v2 and what are its advantages over Sei v1? Sei v2 designs a blockchain that can be directly integrated with the Ethereum Virtual Machine (EVM), allowing developers from Ethereum to build their protocols directly on Sei without significant barriers to entry. In contrast, in Sei v1, Sei was not directly integrated with EVM, making it difficult for Ethereum developers to build dApps on the Sei Network. The Sei Network development team saw this as an opportunity not to be missed and successfully developed Sei v2.
Here are the major changes that have occurred in Sei Network:
- Backwards compatibility of EVM smart contracts allowing developers to deploy audited smart contracts from EVM compatible blockchains with no code changes.
It refers to the ability of a system or technology to remain compatible with previous versions or standards. In the context provided, backward compatibility means that the technology developed by Sei Network allows developers from Ethereum to easily build dApps on the Sei Network without needing to modify any code based on Ethereum. This is significantly different from Sei v.1, where developers had to change quite a bit of code to integrate their dApps from Ethereum to make them compatible with the Sei Network v.1 blockchain.
- Reusability of familiar and widely used applications and tooling such as Metamask
- Optimistic parallelization allowing the chain to support parallelization without requiring developers to define any dependencies.
The simple essence of the Optimistic Parallelization technology developed by the Sei development team is to avoid conflicts between transactions that occur simultaneously. Developers building their dApps on the Sei Network also do not need to worry about this issue because it is already managed by the Sei Network development team. This allows the Sei Network blockchain to process transactions faster and more efficiently than before, opening up opportunities for Sei Network to attract many users from around the world to enter and use the Sei Network blockchain.
- SeiDB, the Sei Network Data Base, providing improvements to the storage layer to prevent state bloat, improve state read/write performance, and making it easier for new nodes to state sync and catch up.
Sei Network has a database called SeiDB. In short, they need a database to retrieve the data that the Sei blockchain requires, such as transaction data, RPC data, and validator data, so that transactions can be processed properly. A database is crucial because without it, the blockchain cannot store transaction data from users, leading to errors in the funds of users using the Sei blockchain.
- Interoperability with the existing chain, allowing for seamless composability between EVM and any other execution environments supported on Sei. The Sei blockchain is essentially built using the Cosmos SDK, which allows them to communicate with other blockchains. This gives Sei a unique advantage in gaining mass adoption from users who have not yet used the Sei Network blockchain.