Jay Jog, Co-Founder of Sei Labs, on L1s vs. L2s, Solving EVM’s Scalability Issues, Stablecoin Tooling, and Unlocking Web2-level Performance for Web3 | Ep. 414

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Jay Jog, Co-Founder of Sei Labs, joined the Cryptonews Spotlight Podcast to discuss why Sei is building a high-performance Layer-1 instead of an L2, how to scale the EVM to Web2-level performance, and why stablecoins are crypto’s most apparent product-market fit.

As the fastest L1 blockchain with parallelized execution, Sei redefines blockchain efficiency while solving Ethereum’s scalability and cost challenges.

Why Sei Chose to Build an L1 Instead of an L2

“When we got started, every single investor was asking us, why are you guys not building an L2? In 2022 and 2023, that was just the meta—everyone needed to build a rollup.”

While Layer 2 rollups were seen as the go-to solution for Ethereum’s scalability, Sei took a contrarian approach, building a high-performance L1 that removes throughput bottlenecks without relying on Ethereum’s data availability layer.

Ethereum’s Scaling Bottleneck is Data Availability

“If you are using Ethereum for DA, you just can’t get good performance.”

Sei’s high-throughput, low-latency architecture removes the fundamental performance constraints that limit most Ethereum-based rollups.

Sei is Built for Speed and Scalability

“We’re scaling to five gigagas per second, the equivalent of up to 250k TPS, closing the performance gap between Web2 and Web3.”

Sei’s Giga Roadmap aims to make blockchain as fast as Web2, enabling instant transactions and high-frequency applications.

Parallelized EVM: Fixing Ethereum’s Throughput Problem

“One of the really simple things about this is that modern hardware already has multiple cores… but we’re not using it with the EVM, which is so silly.”

Sei redesigned the EVM from the ground up to support parallel execution, dramatically improving speed and efficiency.

The Problem With App-Specific Chains

“Every app chain eventually needs to become general-purpose because it’s impossible to sustain an ecosystem with just one app.”

Sei evolved from an app-specific blockchain to a general-purpose L1, ensuring long-term growth and developer adoption.

Why Stablecoins Are Crypto’s Most Successful Product

“Stablecoins are a no-brainer. They allow instant settlement, which is a massive UX improvement over wire transfers.”

Sei is building stablecoin tooling to improve payments, accessibility, and real-world adoption, particularly in emerging markets.

Crypto UX Needs to Be Better Than Traditional Banking

“If you build something like Venmo, except make it better than Venmo, that’s when people will actually start using stablecoins for payments.”

Sei is working with developers to bridge the gap between stablecoins and real-world finance by creating familiar, user-friendly interfaces.

Why AI Agents Make Sense on Blockchain

“AI agents can transact with instant settlement, removing the inefficiencies of off-chain payment systems.”

AI agents require blockchain for trustless automation, making Sei’s high-throughput, low-latency network an ideal execution environment.

The Rise of AI-Powered Trading on Sei

“We’re getting closer to a world where AI agents research and invest in crypto for you—fully automated.”

Sei is pioneering AI-driven trading applications, where users delegate trading strategies to AI models.

Sei’s Strategy to Attract Developers

“Almost all crypto developers are EVM developers. If you want adoption, you need to support them.”

By scaling Ethereum’s existing developer ecosystem instead of trying to replace it, Sei makes it easy for projects to migrate and build.

Sei’s High-Throughput Design Enables AI Applications

“AI agents will require frequent, high-speed transactions—only chains like Sei and Solana can handle that.”

With its scalability-focused architecture, Sei is one of the few blockchains capable of supporting AI-driven financial transactions.

The Future of L1s vs. L2s

“There’s a shift happening—projects that were planning to launch L2s are now pivoting to L1s because it makes more sense long-term.”

Sei’s general-purpose approach positions it as a scalable alternative to fragmented rollup ecosystems.

The Challenge of Sustaining Hype in Crypto

“It’s easy to have excitement before a token launch. Sustaining that excitement is one of the hardest things in crypto.”

Sei’s long-term focus is on real adoption, not short-term hype, ensuring sustained growth and developer interest.

What’s Next for Sei?

“We have an internal DevNet running now—the next step is opening it up for external testing.”

Sei’s next phase involves public testing and ecosystem expansion, setting the stage for wider adoption and developer engagement.