What Is Sei Network and How to Buy SEI Tokens?

Sei is a blockchain specifically designed for trading, with a focus on speed, scalability, and security. Sei offers faster, more efficient transactions than many other platforms by using on-chain order books instead of automated market makers, setting it apart in the DeFi space.

In this article, we will discuss what Sei Network is, Sei coins, its tokenomics, statistics, history of the Sei Network, its features, and how to buy or trade Sei coins.

What Is Sei Network? 

Sei Network is a Layer 1 blockchain that is specifically designed for trading. It is built on the Cosmos SDK and uses a novel consensus mechanism called Tendermint BFT (Byzantine Fault Tolerance). Sei Network is designed to be the fastest and most scalable blockchain for trading, with the ability to process thousands of transactions per second with sub-second finality. 

Sei uses on-chain order books for precise buy and sell order matching unlike many DeFi platforms relying on automated market makers. This empowers DeFi applications to tap into Sei's Central Limit Order Book (CLOB) for deep liquidity.

Sei's on-chain order book boosts speed and efficiency, while its integration with the Cosmos SDK ensures network stability. Innovative features like Intelligent Block Propagation and Optimistic Block Processing provide sub-second finality and improved throughput, crucial for DeFi trading.

Sei Blockchain enables quicker and more efficient transactions compared to other famous platforms. It distinguishes itself from most DeFi platforms, which typically rely on automated market makers, by opting for on-chain order books. This unique approach grants it a substantial advantage in liquidity access and management over other DeFi platforms.

Sei incorporates specific features to combat front-running, a prevalent issue in blockchain trading. Through the utilization of the Frequent Batch Auctioning technique, Sei groups transactions into batches within each block, executing all orders at a consistent clearing price simultaneously. This safeguards market integrity by preventing manipulation of order sequence within a batch from impacting prices.

In contrast to many open blockchains, Sei operates as a permissioned blockchain. This entails a vetting process for projects seeking inclusion on the network. While this may restrict the number of projects on the platform, it ultimately ensures a more optimized and trustworthy user ecosystem.

What Is the SEI Coin? 

SEI coin serves as the native cryptocurrency within the Sei Network, a specialized Layer 1 blockchain tailored for trading purposes. Within the Sei Network ecosystem, SEI coin fulfills a variety of roles, which include:

1. Transaction Fees: SEI coin is utilized to cover transaction fees incurred on the Sei Network. These fees serve as incentives for validators and contribute to the network's security.
2. Staking: SEI coin can be staked by users to accrue rewards and bolster the overall security of the Sei Network.
3. Governance: SEI coin holders possess the ability to actively participate in the governance of the Sei Network. This participation encompasses voting on proposals and the election of validators.

SEI coin finds application within numerous decentralized applications (dApps) integrated into the Sei Network, encompassing:

• Decentralized Exchanges: SEI coin serves as a medium of exchange for trading various assets on DEXes hosted on the Sei Network.
• Centralized Exchanges: Certain centralized exchanges that support the Sei Network allow users to deposit and withdraw SEI coins.
• High-Frequency Trading (HFT) Firms: HFT firms leverage SEI coin for high-speed asset trading activities conducted on the Sei Network.
• Market Makers: Market makers utilize SEI coins to provide liquidity within the markets available on the Sei Network.
• Institutional Investors: An increasing number of institutional investors opt for SEI coin as a means to engage in asset trading activities facilitated by the Sei Network.

SEI coin presents itself as a promising cryptocurrency with a diverse range of potential applications. As the native cryptocurrency of the Sei Network, it plays pivotal roles in transaction processing, staking, governance, and various dApps, positioning itself at the forefront of blockchain innovation tailored for trading purposes.

SEI Tokenomics

The SEI token has a maximum supply limit of 10 billion tokens, with a large portion allocated for distribution among the community and projects that are actively contributing to the development of the Sei ecosystem. The distribution is outlined below:

• Ecosystem Reserve (48%): This reserve is used for staking rewards, where validators secure the Sei blockchain and facilitate transactions. It also supports ecosystem initiatives by granting tokens to contributors, builders, and validators.
• Foundation Treasury (9%): SEI tokens are allocated to support the ongoing operations of the Sei Foundation.
• Team (20%): The team is allocated 20% of the total supply for further development and innovation
• Private Sale Investors (20%): Private Investors are allocated 20% of SEI tokens.
• Launchpool (3%): A portion of SEI tokens is allocated to the Launchpool.

These allocations ensure the active involvement of the community and support various aspects of the Sei ecosystem.

SEI Token Statistics

*Data source: The table above is real-time data from Coinmarketcap as of September 19, 2023

History of Sei Network

Sei Network, established in 2021, was co-founded by Jeff Feng, Jayendra Jog, and Dan Edlebeck. Both Feng and Jog bring extensive experience as software engineers in financial technology, while Edlebeck is a seasoned entrepreneur with a primary focus on blockchain technology. The concept for Sei Network originated during Feng and Jog's tenure at a financial technology firm. They recognized the transformative potential of blockchain technology in the financial sector, yet observed that existing blockchains lacked the speed and scalability required for high-performance financial applications.

The Sei Network team consists of proficient software engineers and developers with expertise spanning financial technology and blockchain technology. The Sei team is made of three co-founders: Jeff Feng, Jayendra Jog, and Dan Edlebeck.

Sei Network stands as an innovative blockchain expressly developed for trading purposes. Sei Network is supported by a dedicated team and a well-defined vision, it holds the potential to revolutionize trading practices in the financial landscape.

Features of Sei Network

Below are some of the features of Sei Network that make it ideal for trading:

1. Speed: Sei Network is one of the fastest blockchains for trading with the ability to process thousands of transactions per second 
2. Scalability: Scalability is a feature of Sei Network. Sei Network is designed to be a scalable blockchain for trading.
3. Security: Sei Network is built on the Cosmos SDK and uses a novel consensus mechanism called Tendermint BFT. This makes Sei Network one of the most secure blockchains in the world.
4. Built-in Order Matching Engine: Sei Network has a built-in order matching engine that is optimized for speed and scalability. This allows exchanges to build on Sei Network without having to develop their own order-matching engine.
5. Native Price Oracle: Sei Network has a native price oracle that provides accurate real-time prices for assets. This eliminates the need for exchanges to rely on third-party price oracles.
6. Cross-chain Compatibility: Sei Network is cross-chain compatible with other Cosmos blockchains. This means that assets on other Cosmos blockchains can be traded on Sei Network.

How to Buy and Trade SEI Tokens? 

CoinEx is a global cryptocurrency exchange, trusted by 5+ millions of users worldwide with 100% reserve. With its 700+ tokens supported, including SEI, users can now trade easily and seamlessly. To purchase SEI coins on CoinEx, follow the steps below.

1. Create an Account: Start by signing up for a CoinEx account.
2. Deposit Funds: After logging in, deposit funds into your CoinEx account using any supported cryptocurrencies or deposit methods available on the exchange. Having funds in your account enables you to execute trades seamlessly.
3. Navigate to SEI Trading Page: Once your account is funded, go to the dedicated SEI trading page on CoinEx. Here, you can find various trading pairs involving SEI tokens.
4. Choose a Trading Pair: Select the desired trading pair that matches SEI with another cryptocurrency. For instance, you may choose SEI/USDT if you wish to trade SEI against USDT (Tether).
5. Specify the Purchase Amount: Determine the quantity of SEI tokens you want to purchase. Input the amount in the trading interface, which will calculate the corresponding cost based on the current market price.
6. Execute the Trade: With the specified amount, proceed to execute the trade. Confirm the details, and if you are satisfied, submit the order. 

By following these comprehensive steps, you can easily trade SEI on CoinEx, taking advantage of the available trading pairs.