The Sei Foundation, parent company of the Sei blockchain operating at Layer 1, has taken a significant step towards version 2 of its network, as announced on Monday. Led by Sei Labs, this upgrade aims to enhance the blockchain's performance by implementing a highly efficient instance of parallelized Ethereum Virtual Machine (EVM).

The network upgrade will follow approval of the governance proposal, occurring one week after. This swift timeline underscores the Sei team's dedication to improving their network's functionality.

Sei's parallelized EVM marks a major technological leap in the company's operations, enabling Ethereum-based contracts to be executed on the Sei platform nearly instantaneously. This feature significantly reduces transaction validation time, elevating efficiency and effectiveness standards.

Version 2 of Sei's blockchain, slated for release, will support Ethereum and parallel execution, akin to other high-performing blockchains like Solana. This positions Sei as a formidable contender in the industry. The v2 update will also compete with other parallelized EVMs, such as Monad and Neon, in the fiercely competitive blockchain landscape.

Sei Labs anticipates significant interest in the upgrade, particularly from Ethereum-based applications. Discussions are underway with investors and recipients such as Uniswap, Frax, X2Y2, Bancor, and others for access to v2. This impending adoption of Sei v2 signals the platform's potential to become a leading hub for blockchain collaboration.

Since its beta launch on the Cosmos mainnet in August 2023, Sei has primarily focused on applications developed with Rust that run on Cosmos. However, with the arrival of Sei v2, the team plans to expand by engaging both new and existing users and optimizing network compatibility. This strategic shift aims to foster inclusivity and adaptability for development.

Following a successful funding round in April 2023, wherein Sei Labs raised $30 million through investors like Jump and Multicoin Capital, the focus is now on transitioning to Sei v2. This underscores Sei Labs' commitment to supporting the Sei blockchain ecosystem financially and technologically.

These recent developments at Sei reflect a strategic direction aimed at enhancing blockchain efficiency and competitiveness. By embracing cutting-edge technological innovations and improving support for Ethereum-based applications, Sei positions itself as a key player in the blockchain industry. Investors and the broader tech community are closely observing how this significant change will shape the future of blockchain.