Exploring the performance, compliance, and interoperability of the Blockchain Sei

Written by: 0xResearcher

Reprinted: Lawrence, Mars Finance

While the market is still abuzz with the hype of meme coins and ETFs, some forward-thinking traditional financial players have quietly shifted their focus to another direction: infrastructure that is more powerful, compliant, and facilitates smoother cross-chain transactions. What they seek is not "short-term thrills," but rather the underlying systems that the next generation of finance can truly operate on. Sei is emerging as a popular choice in their eyes.

Upon careful observation, it can be found that its most prominent feature is: it retains the inherent technical advantages of cryptocurrency while actively embracing regulatory frameworks. It does not pursue short-term hype, but instead focuses on addressing the two most challenging issues in the implementation of blockchain - performance bottlenecks and compliance thresholds. This development philosophy of "slow is fast" may be precisely the 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 that, and even Solana, which claims to be "lightning fast," is 22% slower.

Moreover, Sei is fully compatible with Ethereum ecosystem development tools, such as Hardhat and Foundry, allowing developers to onboard "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 has significantly reduced the risk of being captured by MEV in large transactions by introducing a "deterministic Gas fee" model, while also enhancing the predictability of overall transaction costs. Coupled with high-performance RPC nodes that respond in nanoseconds and an audited mempool architecture, these greatly enhance the friendliness of the on-chain system towards institutional users.

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 Endorsement: A Key Signal to Boost Market Confidence

In addition to a solid foundation in technology and compliance, Sei has also achieved a key breakthrough 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 a recognition of the quality of its underlying assets by the entire industry.

It is important to emphasize that not all blockchain projects meet the criteria for launching a staked asset ETF, therefore, Sei being included in the ETF product itself represents a strong market endorsement. Against the backdrop of gradually improving market sentiment, such progress is likely to become a key variable in boosting confidence among the community and institutions.

Cross-chain liquidity aggregation: Breaking down barriers between chains

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

In addition, Seu has partnered with Circle to develop a compliant cross-chain USDC channel, ensuring the secure circulation of the stablecoin across different chains. To incentivize liquidity providers, a liquidity bootstrapping fund (LBF) of $50 million has been established to support cross-chain trading and asset management.

Rapid expansion of the ecosystem: a comprehensive bloom 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 USD, and the stablecoin market cap hit a historical high of 178 million USD.

It is particularly noteworthy that the gaming sector has become a major driver of growth. The average daily gaming-related transaction volume reached 354,000, a year-on-year increase of 79.8%. For example, a multiplayer online role-playing game similar to World of Warcraft, World of Dypians, has 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 Stage: 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 that of the current system. This not only signifies a qualitative change in processing capability 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 in less than two years the path that traditional projects take five years to explore. 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.

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. With the continuous growth of the ecosystem and the ongoing improvement of technical performance, 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 continuous technological advancements, it is expected to become a bridge connecting Web2 and Web3, leading the development of the next generation of the internet.