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Sunday, November 27, 2022
HomeGuidesSei Community Unpacked: Testing the New Layer 1 Forward of Its Token...

Sei Community Unpacked: Testing the New Layer 1 Forward of Its Token Airdrop

Key Takeaways

  • Sei Community is an upcoming DeFi-focused Layer-1 blockchain constructed on Cosmos.
  • It hopes to turn out to be a “decentralized Nasdaq” by providing quick transaction execution speeds of 300 to 400 milliseconds.
  • Testnet customers will obtain SEI tokens for his or her contributions to the community when it goes stay on mainnet.

Sei Community is a DeFi-focused Layer 1 blockchain constructed on Cosmos. It is going to embody fundamental primitives reminiscent of an order-matching engine and a unified liquidity mannequin, enabling quicker and simpler software growth than on general-purpose blockchains like Ethereum. The venture is backed by business heavyweights like Multicoin Capital, Coinbase Ventures, Delphi Digital, and GSR Ventures.

A New DeFi-Centered Layer 1

A brand new Layer 1 is coming to Cosmos, and there may be nonetheless time to check it earlier than its mainnet launch.

Sei’s group says it needs to develop a “decentralized Nasdaq.” The thought is to allow the creation of monetary functions that may use the platform’s native order book-based decentralized trade.

This isn’t the primary time crypto initiatives have experimented with a network-wide order-book trade. Solana had an identical plan with its flagship DeFi protocol, Serum. The Solana-based order e-book trade offers liquidity and token swaps for different DeFi functions within the Solana ecosystem. Initiatives like Mango Markets, Zeta, Solend, and Raydium use Serum as the bottom layer for working functions on Solana.

Solana’s DeFi ecosystem topped $10 billion in whole worth locked in late 2021, however its utilization has plummeted due to the continuing crypto winter, frequent outages and hacks, and the collapse of the Solana-affiliated FTX trade. 

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The whole worth locked on Serum dropped significantly in 2022 (Supply: Defi Llama)

Nonetheless, Sei Community will differ from Solana in a number of methods.

First, it would completely facilitate DeFi transactions, which means different functions in niches like NFTs and gaming gained’t clog the community. Second, as a substitute of utilizing a brand new consensus mechanism to enhance throughput, Sei’s group makes use of the tried and examined Cosmos Software program Improvement Package, which ought to end in extra stability and fewer downtime than Solana. 

Sei’s Semi-Decentralization

To attain the transaction speeds required to run a decentralized equal of New York’s quantity two inventory trade, Sei wants to supply swift execution instances within the order of microseconds (1 second = 10^6 µs). This requires some trade-offs in decentralization. Most notably, Sei will run a restricted variety of validators. It plans to launch with simply 50 validators on mainnet, making it one of many world’s most centralized blockchains. For comparability, BNB Chain, a Binance-run community extensively criticized for its lack of decentralization, has 41 validators.

Nonetheless, Sei would be the quickest Cosmos SDK chain if it achieves its goal of 300 to 400-millisecond transactions. The group has tweaked the fundamental Cosmos SDK design, which normally offers execution speeds of two to 3 seconds, by implementing optimistic block manufacturing and parallel order execution.

Furthermore, ecosystem growth on Sei is not going to be permissionless like on Ethereum as a result of functions that need to construct on it have to be accepted by governance. This might inhibit revolutionary initiatives within the vein of OlympusDAO from showing on Sei. Nonetheless, it would allow a extra optimized atmosphere for the ecosystem’s managers. It’s anticipated that the founding group will completely make governance selections when it launches however will ultimately transition to a decentralized course of by handing off decision-making to SEI token holders.

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Methods to Earn From Sei Community

The Sei Community mainnet launch is deliberate for the tip of 2022. Nonetheless, as is typical of growth schedules, the launch may very well be topic to delays. The group has already begun group growth initiatives by working an incentivized testnet since July 2022. The Sei group has acknowledged that testnet contributors will obtain 1% of the overall provide of SEI tokens.

The early testnet missions, reminiscent of organising a Sei validator node, have intensive {hardware} necessities reminiscent of 32GB RAM. Nonetheless, a few of the newer missions, reminiscent of testing Sei’s first futures buying and selling platform, are extra accessible. You’ll find our testnet information for getting concerned within the anticipated SEI token airdrop by way of SIMETRI.

In conclusion, Sei Community is a promising venture with first rate backing and technological design. Whereas there are some centralizing elements, these are compromises to make sure stability, pace, and excessive throughput. It stays to be seen whether or not Sei will stay as much as its expectations by way of efficiency as soon as it launches. Regardless, Sei’s greatest problem could become growing an energetic DeFi ecosystem exterior Ethereum amid a grueling bear market.

Disclosure: On the time of writing, the writer of this piece owned BTC, ETH, and a number of other different crypto belongings. 

BitcoinMasterNews

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