In-depth exploration of Sei: Blockchain performance, Compliance, and interoperability

Author: 0xResearcher

While the market is still buzzing with the hype of meme coins and ETFs, some traditional financial players with a longer vision are quietly turning in another direction: towards infrastructure that is more powerful, compliant, and facilitates smoother cross-chain interactions. What they seek is not "short-term thrills," but a foundational system that can truly drive the next generation of finance. And Sei is becoming a popular choice in their eyes.

A close observation reveals that its most prominent feature is that it retains the native technological advantages of encryption while actively embracing regulatory frameworks. It does not pursue short-term hype but instead focuses on addressing the two most challenging issues for blockchain implementation—performance bottlenecks and compliance thresholds. This "slow is fast" development philosophy may be the very quality that the industry needs most as it transitions from speculation to practicality.

Performance Innovation: Moving from "Second-Level" to "Millisecond-Level"

While most blockchains are still grappling with the issue of "hundreds of transactions per second," Sei has taken speed to another dimension: processing over 12,500 transactions per second (TPS) with a final confirmation time of just 400 milliseconds. In comparison, the confirmation time of the Ethereum mainnet is 470 times longer, and even the so-called "lightning fast" Solana is 22% slower.

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

Compliance Design, Born for Institutions

When institutions begin to truly engage with blockchain, the focus of the issue shifts from "whether it can be used" to "whether it is trustworthy." In this regard, Sei significantly reduces the risk of being captured by MEV in large transactions by introducing a "deterministic Gas fee" model, while also improving the predictability of overall transaction costs. Coupled with high-performance RPC nodes with nanosecond-level response times and an audited mempool architecture, these enhancements greatly increase the friendliness of on-chain systems for institutional users.

At the same time, its compliance capability is not just a verbal commitment. For example, a new entity in the ecosystem recently established a compliance operational framework in the United States and launched a $65 million fund to support DeSci (decentralized science) projects, which itself conveys a long-term investment and emphasis on compliance.

ETF Endorsement: A Key Signal to Restore Market Confidence

In addition to a solid foundation in technology and compliance, Sei has also made key breakthroughs in asset financialization. Recently, Canary submitted the first ETF based on Sei-staked assets in the United States, which is not only an important milestone for Sei but also an acknowledgment of the quality of its underlying assets by the entire industry.

It is important to emphasize that not all blockchain projects meet the conditions for launching a staked asset ETF. Therefore, Sei's inclusion in the ETF product itself represents a strong market endorsement. Against the backdrop of gradually warming market sentiment, such developments are likely to become a key variable in boosting confidence among communities and institutions.

Cross-Chain Liquidity Aggregation: Breaking Down Barriers Between Chains

To solve the problem of fragmented liquidity, Sei has collaborated with cross-chain protocols such as Wormhole and Axelar to achieve seamless connectivity with major blockchains like 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, ensuring the secure circulation of stablecoins across different chains. To incentivize liquidity providers, a $50 million Liquidity Bootstrapping Fund (LBF) has been established to support cross-chain trading and asset management.

Rapid Expansion of Ecosystem: A Flourishing Transition from DeFi to Gaming

Since mid-2024, Sei's ecosystem has rapidly developed, attracting over 150 projects to deploy on the mainnet, with daily active addresses reaching 400,000 and total users exceeding 6.5 million. In the first quarter of 2025, the total value locked (TVL) grew by 73.7%, reaching $363 million, and the market cap of stablecoins hit a historical high of $178 million.

It is especially worth mentioning that the gaming sector has become a major driver of growth. The average daily trading volume related to gaming reached 354,000 transactions, a year-on-year increase of 79.8%. For example, multiplayer online role-playing games similar to "World of Warcraft," such as World of Dypians, have achieved significant user growth on these platforms.

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

Starting Point of a New Phase: Giga Upgrade and Future Blueprint

Although the current data is impressive, Sei's ambitions are clearly not limited to this. The Giga upgrade, planned for launch in 2025, will introduce a brand new EVM client, with performance improvements expected to reach 50 times the current level. This not only signifies a qualitative change in processing power but also symbolizes a further leap towards the goal of "universal infrastructure."

From infrastructure to ecological prosperity, and then to institutional design and technological evolution, Sei has completed a path that traditional projects take five years to explore in less than two years. It may not be the loudest voice in the market, but it could be the most steadfast force in building the next era of blockchain.

Moving Towards a Decentralized Future

The technical upgrade of Sei is not only a leap in performance but also an important step in its global strategic layout. By establishing a legal and compliant operating entity in the United States, it provides a solid foundation for global expansion. As the ecosystem continues to grow and technological performance continues to improve, it is leading blockchain technology towards a truly decentralized future.

In this process, Sei not only provides developers with a powerful technical platform but also brings a more efficient and secure blockchain application experience to global users. 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.