A Deep Dive into SEI: Blockchain Performance, Compliance, and Interoperability

 

Writing：0xResearcher

 

While the market is still boiling over meme coins and ETFs, some traditional financial players with a more long-term vision have quietly turned in another direction: infrastructure with stronger performance, higher compliance, and smoother cross-chain. What they want is not "short-term stimulus", but the underlying system that the next generation of finance can really run. And Sei is becoming a popular choice in their eyes.

 

A closer look reveals that its most striking feature is that it retains the technical advantages of crypto natively while actively embracing the regulatory framework. Instead of pursuing short-term popularity, we should concentrate on solving the two most difficult problems of blockchain implementation - performance bottlenecks and compliance thresholds. This "slow is fast" development philosophy is perhaps the most needed trait for the industry to move from speculation to practicality.

 

Performance Innovation: From "Seconds" to "Milliseconds"

 

While most blockchains are still dealing with the problem of "hundreds of transactions per second", Sei has taken the speed to another dimension: it can process more than 12,500 transactions per second (TPS) with a final confirmation time of only 400 milliseconds. In comparison, the confirmation time of the Ethereum mainnet is 470 times faster, and even Solana, which is claimed to be "lightning fast", is 22% slower.

 

Moreover, Sei is fully compatible with Ethereum ecosystem development tools, such as Hardhat and Foundry, so developers can get started "painlessly", greatly reducing migration and development costs.

 

Designed for compliance, built for institutions

 

When institutions begin to truly participate in blockchain, the focus of the question shifts from "whether it works" to "whether it can be trusted". In this regard, Sei has significantly reduced the risk of being captured by MEV in large transactions by introducing a "deterministic gas fee" model, and has also improved the predictability of overall transaction costs. Coupled with high-performance RPC nodes with nanosecond response and audited mempool architecture, these greatly enhance the user-friendliness of the on-chain system.

 

At the same time, its ability to comply is not a verbal promise. For example, a new entity in the ecosystem recently set up a compliance operation structure in the United States and launched a $65 million fund to support DeSci (decentralized research) projects, which in itself conveys a long-term investment and emphasis on compliance.

 

ETF endorsements: a key signal to unlock market confidence

 

In addition to a solid foundation in technology and compliance, Sei has also achieved key breakthroughs in asset financialization. Recently, Canary submitted its first ETF based on SEI's collateral assets in the U.S., which is not only a significant milestone for SEI, but also an industry-wide recognition of the quality of its underlying assets.

 

It is important to emphasize that not all blockchain projects are qualified to launch a pledged asset ETF, so the inclusion of Sei in the ETF product itself represents a strong market endorsement. Against the backdrop of a gradual warming in market sentiment, such developments are likely to be a key variable in boosting community and institutional confidence.

 

Cross-chain liquidity aggregation: Break down inter-chain barriers

 

To solve the problem of liquidity fragmentation, Sei has partnered with cross-chain protocols such as Wormhole and Axelar to achieve seamless connections with mainstream blockchains such as Ethereum and Cosmos. Users can freely interact between protocols on different chains without cumbersome bridging operations.

 

In addition, Seu has partnered with Circle to develop a compliant cross-chain USDC channel to ensure the secure circulation of stablecoins between different chains. To incentivize liquidity providers, a $50 million Liquidity Guidance Fund (LBF) has been set up to support cross-chain trading and asset management.

 

Rapid expansion of the ecosystem: from DeFi to the full flowering of gaming

 

Since mid-2024, Sei's ecosystem has grown rapidly, attracting more than 150 projects deployed on mainnet, reaching 400,000 daily active addresses, and surpassing 6.5 million total users. In the first quarter of 2025, the total value locked (TVL) increased by 73.7% to $363 million, and the stablecoin market cap hit an all-time high of $178 million.

 

In particular, the gaming sector has emerged as a major driver of growth. The average daily game-related transaction volume reached 354,000, up 79.8% year-over-year. For example, World of Dypians, a multiplayer online role-playing game similar to World of Warcraft, has seen significant user growth on these platforms.

 

In addition, a $10 million Creator Fund and a $250,000 Street Team program were launched to support the development of NFTs and social projects and encourage global creators to participate in the construction of the ecosystem.

The beginning of a new phase: the Giga upgrade and the blueprint for the future

 

While the current numbers are impressive, it is clear that SEI's ambitions don't stop there. The Giga upgrade, scheduled to go live in 2025, will introduce a new EVM client that is expected to deliver a 50x performance boost from today. This not only represents a qualitative change in processing capacity, but also symbolizes another leap forward in the goal of "universal infrastructure".

 

From infrastructure to ecological prosperity to institutional design and technological evolution, Sei has completed the path that traditional projects can figure out in five years in less than two years. It is not the noisiest voice in the market, but it may be the most determined force in building the next blockchain era.

 

Towards a decentralized future

 

SEI's technology upgrade is not only a leap forward in performance, but also an important step in its global strategic layout. By establishing a legally compliant operating entity in the United States, it provides a solid foundation for global expansion. With the continuous growth of the ecosystem and the continuous improvement of technical performance, it is leading blockchain technology towards a truly decentralized future.

 

In this process, Sei not only provides a powerful technology platform for developers, but also brings a more efficient and secure blockchain application experience to users around the world. With the continuous advancement of technology, it is expected to become a bridge connecting Web2 and Web3, leading the development of the next generation of the Internet.

 

This article is sourced from Foresight News:

https://foresightnews.pro/article/detail/84356

Respectfully submitted by the AIC Team

May26, 2025