SEI is everywhere. Other than Bitcoin, it’s probably the biggest crypto project in the news recently.
But what is it? How is it different? And how can we make money from it? Stay tuned, and find out!
What is an Appchain?
SEI is a financial appchain. This is the first difference between it and other Layer 1 chains. Many like Bitcoin, Ethereum, or Cardano are general-purpose Layer 1 chains. This means any project that wants to build on it.
Sei v2: Parallelizing the Ethereum Execution Environment
Sei v2 is poised to become the first parallelized EVM blockchain. This major proposed update from Sei Labs aims to deploy a backward compatible Ethereum execution environment integrated into Sei’s core binary, inheriting… pic.twitter.com/6bfYeVsBLX
— Sei 🔴💨 (@SeiNetwork) November 29, 2023
Appchains are built with specific apps in mind. For instance, Ronin and IMX are game chains. They are built specifically for games to build on their chains. With SEI, it’s finance. This means all the tech decisions they make about building out their chain are thinking about what financial firms need first.
And first, they need speed and scalability if it’s trading or moving money in any way. And secondly, they need security. High security. That means of the 3 pillars of the blockchain trilemma, the one most likely to suffer or fall short is decentralization.
And that’s OK as long as users understand this from the very beginning. SEI is giving legacy financial and trading companies the blockchain components they want.
EVM & CosmWASM
Sei is working on protocol adoption by working with the 2 biggest virtual machines for compatibility:
- EVM.
- CosmWASM.
When it comes to Sei v2, we started with one question: what does the Ethereum ecosystem need, right now?
In the spirit of ruthless optimization, it was crucial that developer and user needs come first and define the technology, and never the other way around. This is central to… pic.twitter.com/Z0VWvPL0Tn
— Sei 🔴💨 (@SeiNetwork) January 16, 2024
For EVM, Sei offers a parallelized EVM. This means in the EVM environment you can run multiple transactions at the same time. This increases speed and throughput in the system. This is a new way of running an EVM and Sei is the first to offer it.
For CosmWASM, as a Cosmos Layer 1, they are already compatible with this, most commonly known as Web Assembly. Sei has smart contracts in WASM already. The bottom line, Sei is compatible with both. And transactions are fast.
Price Move: Too Much, Too Soon?
Sei is in the news mostly for its huge price action. So has it gone too far, too fast? Let’s take a look. Right now, it’s the #46 coin by market cap on CoinGecko. It’s up 224% in the last 30 days. And in the last 3 months, it went from its all-time low of 9.5 cents up to its current price of 73 cents. That’s a 7x or 667% increase in ONLY 90 days.
The current price is just below the all-time high of 87 cents from about 2 weeks ago. So there’s already been one pullback from 87c to 73c or almost 20%. As a financial appchain, Sei needs one thing for huge adoption. Legacy TradFi has to jump in and use blockchain but bring the volumes that come with legacy finance. That’s the Fidelity’s, Blackrock’s, and Franklin Templeton’s of the world.
Great round-up from the team at Contribution DAO.
What will the 2024 network recap look like? https://t.co/b5A8y2FFJG
— Sei 🔴💨 (@SeiNetwork) January 16, 2024
Not coincidentally, all 3 are part of the 11 Bitcoin ETF approvals. So let me leave you with a question. After seeing how successfully their Bitcoin ETFs launched, do you think these legacy finance companies are likely to look to use blockchain more, less, or the same as they are using it now (which is not at all)?
If you think that I do that Bitcoin ETFs are just the tip of the iceberg for legacy finance to start using blockchain, then it makes sense to research further on financial appchains like Sei.
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.
