Sei: A new generation blockchain infrastructure that balances performance and compliance

Against the backdrop of the sustained enthusiasm in the digital asset market, some forward-looking traditional financial participants have turned their attention to more promising areas: blockchain infrastructure with high performance, high compliance, and cross-chain interoperability. They are no longer pursuing short-term speculation but are focused on building the underlying technology that can support the future financial system. In this trend, Sei is gradually becoming a highly regarded choice.

What sets Sei apart is that it retains the native technological advantages of cryptocurrency while actively embracing regulatory frameworks. This development strategy focuses on addressing the two most challenging issues in the practical application of blockchain: performance bottlenecks and compliance requirements. This "slow and steady wins the race" development philosophy may be exactly what the industry needs to transition from speculation to practical stages.

Performance Breakthrough: Millisecond Confirmation Time

While most blockchain projects are still working to improve their ability to process hundreds of transactions per second, Sei has taken transaction speed to a whole new level. It can process over 12,500 transactions per second, with a final confirmation time of just 400 milliseconds. This performance far exceeds that of the Ethereum mainnet and is even 22% faster than Solana.

More importantly, Sei is fully compatible with Ethereum ecosystem development tools such as Hardhat and Foundry, which significantly reduces the learning curve for developers and the difficulty of project migration.

Customized Compliance Design for Institutional Needs

With the participation of institutional investors, the focus of blockchain projects has shifted from pure functionality to credibility and compliance. In response to this demand, Sei has introduced a "Deterministic Gas Fee" model, effectively reducing the MEV (Miner Extractable Value) risk in large transactions and improving the predictability of transaction costs. At the same time, Sei also provides high-performance RPC nodes with response speeds reaching nanosecond levels, as well as a rigorously audited memory pool architecture, all of which greatly enhance the friendliness towards institutional users.

Sei's compliance efforts go beyond just the technical level. A new entity within its ecosystem recently established a compliance operating framework in the United States and launched a $65 million fund specifically aimed at supporting decentralized scientific research (DeSci) projects, further highlighting Sei's commitment to long-term compliance development.

ETF Application: An Important Indicator of Market Confidence

Sei has also made significant breakthroughs in the financialization of assets. Recently, an institution submitted the first ETF application based on Sei-staked assets to the U.S. regulatory authorities. This is not only a milestone event in Sei's development history, but also a recognition of the quality of its underlying assets by the entire market.

It is worth noting that not all blockchain projects meet the conditions for launching a staking asset ETF. The inclusion of Sei in ETF products is itself a strong endorsement from the market. Against the backdrop of gradually warming market sentiment, such developments are likely to become a key factor in boosting investor confidence.

Cross-Chain Interoperability: Breaking Down Ecological Islands

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

In addition, Sei has partnered with Circle to develop a compliant cross-chain USDC channel, ensuring the secure circulation of stablecoins across different chains. To further promote the development of the cross-chain ecosystem, Sei has established a $50 million Liquidity Boost Fund (LBF) to support cross-chain trading and asset management.

The Flourishing Development of the Ecosystem

Since mid-2024, the Sei ecosystem has experienced explosive growth. Currently, over 150 projects have been deployed on its mainnet, with daily active addresses reaching 400,000 and total users surpassing 6.5 million. In the first quarter of 2025, Sei's total value locked (TVL) grew by 73.7%, reaching $363 million, and the market capitalization of stablecoins hit a new high of $178 million.

The gaming sector has become a major driver of ecosystem growth. The average daily trading volume related to gaming reached 354,000 transactions, a year-on-year increase of 79.8%. Massively multiplayer online role-playing games have seen significant user growth on these platforms.

In order to further promote the development of the ecosystem, Sei has launched a $10 million creator fund and a $250,000 community promotion program, aimed at supporting the development of NFT and social projects, and encouraging global creators to participate in ecosystem building.

Future Outlook: Giga Upgrade and Long-term Planning

Although Sei's current performance is already outstanding, its development plans go far beyond this. The Giga upgrade, scheduled for release in 2025, will introduce a brand new EVM client, which is expected to enhance performance by 50 times. This not only signifies a qualitative leap in processing power but also marks an important step for Sei towards its goal of becoming a "universal infrastructure."

From infrastructure construction to ecological prosperity, and then to institutional design and technological innovation, Sei has completed a development process in less than two years that traditional projects might take five years to accomplish. Although Sei may not be the most eye-catching project on the market, it is likely to become the strongest foundation for building the next generation of Blockchain.

Moving Towards a Decentralized Future

The technical upgrade of Sei has not only brought about a leap in performance but is also an important part of its global strategic layout. By establishing compliant operating entities in the United States, a solid foundation has been laid for global expansion. As the ecosystem continues to grow and technical performance continues to improve, Sei is leading blockchain technology towards a truly decentralized future.

In this process, Sei provides developers with a powerful technical platform while bringing a more efficient and secure blockchain application experience to global users. With continuous technological advancements, Sei is expected to become an important bridge connecting Web2 and Web3, leading the development direction of the next generation of the Internet.