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3. Advanced Course

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  1. 1. What is Taproot?
  2. 2. Blockchain bridges – what are they?
  3. 3. What is Ethereum Plasma?
  4. 4. What is Ethereum Casper?
  5. 5. What is Zk-SNARK and Zk-STARK? 
  6. 6. What is Selfish Mining? 
  7. 7. What is spoofing in the cryptocurrency market? 
  8. 8. Schnorr signatures - what are they? 
  9. 9. MimbleWimble - what is it? 
  10. 10. What is digital property rights in NFT?
  11. 11. What are ETFs and what role do they play in the cryptocurrency market? 
  12. 12. How to verify a cryptocurrency project – cryptocurrency tokenomics 
  13. 13. What is the 51% attack on blockchain?
  14. 14. What is DAO, and how does it work?
  15. 15. Zero-knowledge proof – a protocol that respects privacy 
  16. 16. What is EOSREX?
  17. 17. What is Proof of Elapsed Time (PoET)?
  18. 18. Mirror Protocol – what it is? 
  19. 19. What are synthetic assets? 
  20. 20. How to create your own NFT? 
  21. 21. Definition of DeFi, and what are its liquidations?
  22. 22. New identity system - Polygon ID
  23. 23. Ethereum Foundation and the Scroll protocol - what is it?
  24. 24. What is Byzantine fault tolerance in blockchain technology?
  25. 25. Scalability of blockchain technology - what is it?
  26. 26. Interchain Security - new Cosmos (ATOM) protocol
  27. 27. Coin Mixing vs. Coin Join - definition, opportunities, and threats
  28. 28. What is Ethereum Virtual Machine (EVM) and how does it work?
  29. 29. Soulbound Tokens - what are they, and how do they work?
  30. 30. Definition of LIDO - what is it?
  31. 31. What are Threshold Signatures, and how do they work?
  32. 32. Blockchain technology and cyberattacks.
  33. 33. Bitcoin script - what it is, and what you should know about it.
  34. 34. What is zkEVM, and what are its basic features?
  35. 35. Do confidential transactions on blockchain exist? What is a Confidential Transaction?
  36. 36. Algorithmic stablecoins - everything you should know about them.
  37. 37. Polygon Zk Rollups ZKP - what should you know about it?
  38. 38. What is Web3 Infura?
  39. 39. Mantle - Ethereum L2 scalability - how does it work?
  40. 40. What is the NEAR Rainbow Bridge?
  41. 41. Liquid Staking Ethereum and LSD tokens. What do you need to know about it?
  42. 42. Top 10 blockchain oracles. How do they work? How do they differ?
  43. 43. What are Web3.js and Ether.js? What are the main differences between them?
  44. 44. What is StarkWare, and recursive validity proofs
  45. 45. Quant Network: scalability of the future
  46. 46. Polygon zkEVM - everything you need to know
  47. 47. What is Optimism (OP), and how do its roll-ups work?
  48. 48. What are RPC nodes, and how do they work?
  49. 49. SEI Network: everything you need to know about the Tier 1 solution for DeFi
  50. 50. Types of Proof-of-Stake Consensus Mechanisms: DPoS, LPoS and BPoS
  51. 51. Bedrock: the epileptic curve that ensures security!
  52. 52. What is Tendermint, and how does it work?
  53. 53. Pantos: how to solve the problem of token transfer between blockchains?
  54. 54. What is asymmetric encryption?
  55. 55. Base-58 Function in Cryptocurrencies
  56. 56. What Is the Nostr Protocol and How Does It Work?
  57. 57. What Is the XDAI Bridge and How Does It Work?
  58. 58. Solidity vs. Rust: What Are the Differences Between These Programming Languages?
  59. 59. What Is a Real-Time Operating System (RTOS)?
  60. 60. What Is the Ethereum Rinkeby Testnet and How Does It Work?
  61. 61. What Is Probabilistic Encryption?
  62. 62. What is a Pinata in Web 3? We explain!
  63. 63. What Is EIP-4337? Will Ethereum Account Abstraction Change Web3 Forever?
  64. 64. What are smart contract audits? Which companies are involved?
  65. 65. How does the AirGapped wallet work?
  66. 66. What is proto-danksharding (EIP-4844) on Ethereum?
  67. 67. What is decentralised storage and how does it work?
  68. 68. How to Recover Cryptocurrencies Sent to the Wrong Address or Network: A Practical Guide
  69. 69. MPC Wallet and Multilateral Computing: Innovative Technology for Privacy and Security
  70. 70. Threshold signature in cryptography: an advanced signing technique!
  71. 71. Vanity address in cryptocurrencies: what is it and what are its characteristics?
  72. 72. Reentrancy Attack on smart contracts: a threat to blockchain security!
  73. 73. Slither: a static analyser for smart contracts!
  74. 74. Sandwich Attack at DeFi: explanation and risks!
  75. 75. Blockchain RPC for Web3: A key technology in the world of decentralized finance!
  76. 76. Re-staking: the benefits of re-posting in staking!
  77. 77. Base: Evolving cryptocurrency transactions with a tier-2 solution from Coinbase
  78. 78. IPFS: A new era of decentralized data storage
Lesson 49 of 78
In Progress

49. SEI Network: everything you need to know about the Tier 1 solution for DeFi

SEI Network is a relatively new solution that has appeared on the market. Due to its speed, it is becoming increasingly popular in the DeFi ecosystem. Granted, this AMM has dominated the decentralized finance space for a long time, but it is inherently less efficient. At this point, SEI has emerged as the solution to all problems.

What is the SEI Network?

It is a blockchain layer 1 that comes from the Cosmos ecosystem. It is still under development. It is also expected to serve as an advanced infrastructure for DeFi applications, especially those that use a natively integrated central limit order book (CLOB) for their operations.

SEI is expected to be a highly scalable, application-specific blockchain. It is expected to bring tremendous benefits to both developers and DeFi users.

Blockchain ecosystems are usually built on a single chain. As a result, developers are limited in how they can design a particular application. dApps have similar capabilities. In addition, they are usually not interoperable, i.e. they can only interact with apps built on the same chain.

SEI Networkis expected to be the solution to all these problems. It will be the first blockchain that is order-book oriented. As a Cosmos chain, it will have a set of validators that use the Tendermint consensus. As a result, SEI Network will be able to connect to more than 50 other inter-operational Tier 1s that use IBC. SEI is also expected to have built-in features such as a publicly accessible order book, price oracle and even front-running protection.

Developers building on SEI will also have access to a wide range of tools. This will allow them to customize their applications to meet specific needs. They are not limited to a single chain, nor do they have to develop their own to meet a particular application.

In summary, SEI Network will be the first layer for DeFi applications. The layer will have a built-in CLOB module that is fully optimized for speed, stability, and cost.

How does the SEI Network work?

SEI Network is supposed to be an app chain for DeFi based on the Cosmos SDK. However, unlike other app chains, it will have Layer 1 capabilities on which we can build different dApps. So the proposed solution is an intermediary between the appchain and the general Layer 1. Since the SEI Network is built with the Cosmos SDK, it optimizes the blockchain for DeFi functions. At the same time, it provides developers with an environment in which they can deploy different DeFi services so that they can easily interact with each other.

In addition, SEI Network is intended to be a powerful DeFi hub in the Cosmos system. It will thus allow other dApps to take full advantage of its features. So what makes the SEI Network different from other networks? Here are some of the features available:

  • CosmWasm & IBC.
  • Native order matching.
  • Optimistic block production.
  • Parallel execution of orders.
  • Network prevents frontrunning.
  • Combining of orders.

With these features, SEI Network can achieve high throughput and scalability.

SEI Network Ecosystem

The network is currently in the testnet phase. Therefore, little information has been revealed about the ecosystem of the network itself. However, if you read the official website, you already know that more than 70 dApps are being prepared for release through the SEI Network. Here’s what the SEI network ecosystem is all about:

  1. Vortex Protocol. It is a decentralized futures exchange based on an order book on the SEI network. It offers high liquidity for its order book, and allows leveraged trading of up to 10x. As the network uses IBC, it can support futures contracts for more than 35 different assets.
  2. Pharaoh Protocol. This is a decentralized synthetic exchange on the SEI Network. The available synthetic tokens in this group are meant to track the price of a specific cryptocurrency asset. Unfortunately, it has not yet been announced how this will work.
  3. Axelar Network. It is an app chain that serves as a bridge across the Cosmos ecosystem. The Axelar Network is designed to support cross-chain use of SEI networks.
  4. Synthr. It is also a cross-chain synthetic token protocol. It supports networks such as Ethereum, Aptos, Sui and SEI.
  5. KYVE. It is a decentralized data protocol that stores queries and organizes large amounts of data generated by SEI. The data thus collected by KYVE is then stored in Arweave, a permanent data storage protocol.
  6. White Whale. This is also a protocol, but its purpose is to solve the problem of fluidity of fragmented cross-chains in the Cosmos ecosystem.
  7. Multichain. This is a bridge protocol to improve the user experience of the SEI network for cross-chains. It works in a similar way to the Axelar network.
  8. Skip. The protocol aims to decentralize MEV in the Cosmos ecosystem. In addition, the protocol provides solutions to prevent frontrunning by supporting Transaction Relay.
  9. Kado. A company that takes care of the entire payment infrastructure in Web3. It offers an on-ramp function that converts cash to cryptocurrencies or an off-ramp function that converts cryptocurrencies to cash.
  10. UXD. This is a decentralized stablecoin protocol. It was first used on the Solana network. UXD issues stablecoins that are used as collateral.
  11. Nitro. This is an optimistic rollup. It uses the Solan virtual machine for its operation.

Summary

If SEI Network succeeds in this area, it will be the first and only player of its kind in the cryptocurrency market. At the same time, SEI is a much-needed addition to the Cosmos ecosystem. As more and more protocols are developed in Cosmos, we promise a bright future for SEI.