Market Trend Insights: Sei Partners with Xiaomi! Can Pre-installed On-Chain Wallets Become a Breakthrough Point in the Web2 Market?

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Author: Shirley Li , Researcher at Web3Caff Research

Cover: Logo from this project, Typography by Web3Caff Research

Word count: Approximately 3000+ words in total

On December 10, according to an official disclosure by Sei , Sei will launch a $5 million global mobile innovation program. As part of the program, all new Xiaomi smartphones sold outside of mainland China and the United States will come pre-installed with a crypto wallet and discovery app. In addition, Sei also plans to introduce stablecoin (USDC) payments into Xiaomi’s expanding retail network, with the feature expected to be piloted first in Hong Kong and the European Union in the second quarter of 2026. [1]

This means that Sei is setting its sights on the broad and mature mobile market, attempting to accelerate the adoption of Web3 technology among mainstream users through mobile scenarios.

In terms of implementation, Sei defines its pre-installed wallet as a "next-generation crypto wallet," allowing users to log in directly to its applications using Google and Xiaomi IDs to simplify the Web2 user registration and login process. It will also employ an MPC mechanism to protect wallet security. This means Sei may not choose to integrate existing mature wallet products on the market, but rather will develop a new wallet customized for Xiaomi phones based on the Sei blockchain . However, whether the final pre-installed wallet will exist as a sub-scenario integrated into the Xiaomi Wallet or as a standalone Web3 wallet remains to be officially disclosed.

We know that Sei is a Layer 1 open-source blockchain led by Sei Labs, aiming to achieve high performance. The project released the Sei Giga white paper on May 19, 2025, detailing the new architecture to be introduced after its network upgrade. Web3Caff Research also commented on it, and I will quote some of its content to briefly introduce the background of this blockchain:

Sei Giga is an Ethereum Virtual Machine (EVM) compatible Layer 1 blockchain designed to resolve the performance bottlenecks and decentralization inherent in traditional blockchains through technological innovation. Its core focus is on supporting high-throughput, low-latency decentralized applications (such as high-frequency trading and gaming) while maintaining high compatibility with the Ethereum ecosystem.

Among them, the multi-proposer architecture and the Autobahn consensus protocol are the core technologies for Sei Giga to achieve high performance. The core of these technologies lies in breaking through the performance bottleneck of the traditional single-proposer model through parallelization and decoupling design. Simply put, the multi-proposer architecture allows each node to act independently as a proposer, continuously generating transaction batches in its respective "lane," while the Autobahn protocol achieves global consensus by periodically aggregating the latest proposals ("cutoff points") from each lane, and at the same time, it uses Proof of Availability (PoA) to replace the full data download verification, thereby optimizing the process.

At the transaction processing level, SeiGiga attempts to overcome execution bottlenecks through asynchronous execution (separating transaction execution from the consensus process) and state separation mechanisms (consensus only determines the transaction order, with state updates processed later). Simultaneously, the execution client employs a parallel pipeline design, parallelizing address resolution, signature verification, and transaction decoding. It also utilizes Block-STM technology (Block-Software Transactional Memory, designed to improve transaction execution speed through parallel processing while maintaining transaction consistency and correctness) to achieve optimistic multi-threaded processing of conflict-free transactions (assuming no conflicts and parallel execution), only rolling back and retrying when a conflict is detected.

Furthermore, improvements in storage and verification efficiency are achieved through architectural innovation. The performance overhead caused by frequent hash calculations in traditional Merkle trees has been replaced by LSM trees (Log Structure Merging Tree, which efficiently handles writes) and tiered storage (storage based on access frequency). Hot data is stored in memory or SSDs, while cold data is migrated to a distributed columnar database, lowering the hardware requirements for nodes and reducing I/O (input/output) pressure. State verification employs asynchronously updated cryptographic accumulator technology (batch verification of data structures) to avoid real-time calculation of the complete state root, aiming to reduce storage overhead while ensuring verifiability. These optimizations not only attempt to address the performance bottlenecks of traditional storage solutions but also provide scalable infrastructure support for long-term network expansion through the separation of hot and cold data and distributed storage design.

In short, Sei Giga has undergone comprehensive optimization in consensus layer , execution layer , data availability , and storage. It supports highly parallel transaction processing by introducing multiple proposers, asynchronous state commitments, and a refactored EVM client, enabling transactions to achieve a "confirm first, then verify state" effect, thereby significantly improving the network's overall transaction processing efficiency. According to official data , the Sei network currently boasts a throughput of 5 Gigagas /second, a transaction throughput (TPS) of up to 200,000 transactions per second, and a final confirmation time (Gigagas) of 400 milliseconds per transaction.

Gigagas (Gas/S) is a new standard for computing network throughput that some projects have recently begun to adopt. It differs from the traditional TPS (Transactions Per Second ) in its statistical approach. TPS measures the number of transactions a network can process per second, while Gigagas is based on the actual Gas consumed by each transaction. This is because complex smart contract interactions often consume more Gas than simple transfers, and their storage and computing resource usage also differs. Therefore, Gigagas is expected to reflect a more accurate picture of a network's processing capacity and throughput. Currently, RISE Chain and Camp Network have also adopted this statistical method.

From a product positioning perspective, Sei Labs will support high-frequency trading scenarios through the Sei network and will also support more mainstream applications. Since July of this year, the Sei network has achieved support for native stablecoins such as USDC and PYUSD0, integrated with mainstream applications such as the Backpack trading platform, MetaMask wallet, Etherscan , and Chainlink, and provided support for tokenized funds including BlackRock, Brevan Howard, Hamilton Lane, and Apollo. In November of this year, Binance also officially became a validator on the Sei network. This demonstrates that the Sei network is gradually being accepted by mainstream platforms and applications.

Returning to the collaboration between Sei and Xiaomi, for Sei, Xiaomi's physical products and vast ecosystem will help it quickly tap into the Web2 market and accelerate the large-scale implementation of on-chain payment scenarios; while for Xiaomi, this move is expected to be a new attempt in the Web3 market.

However, in advancing this cooperation, both parties will also face some potential challenges.

First, according to The Block , in December of this year, the blockchain security research team Ledger Donjon discovered that there is a low-level vulnerability in TSMC’s MediaTek Dimensity 7300 (MT6878) chip. This vulnerability may put Web3 wallet users at risk of having their chips controlled by attackers while their devices are lost, under repair, or briefly controlled by others. This chip has been used in many consumer Android models, including the Redmi Note 14 Pro[2] and the overseas model POCO X7[3].

While this vulnerability doesn't affect the daily use of Web2 devices, this hardware-level risk could escalate into a real asset threat once Web3 wallet functionality is fully implemented. Fortunately, apart from the two models mentioned above, other Xiaomi models do not use this chip.

However, this incident also served as a wake-up call for Sei and Xiaomi, who are trying to explore the integration of Web2 and Web3: with the trend of everything going on the blockchain, ensuring the security of user assets must become the top priority for all project teams.

Secondly, with the future iterations of Xiaomi phones, Sei will also need to cooperate with continuous updates and adaptation work. If the product has defects or vulnerabilities in terms of experience or security, it may have a serious impact on users of both parties.

Furthermore, regarding policy, due to regulatory restrictions and constraints, Sei and Xiaomi's cooperation has clearly stated that they will promote the sale of mobile phones in countries and regions outside of mainland China and the United States. In other countries and regions, such as Hong Kong, the Stablecoin Regulation was officially passed on May 30th of this year (further reading: "Market Trends Insight: Global Web3 Policy Game Escalates! Singapore Tightens, Hong Kong Opens, US Legislates, Vietnam Enters the Market, Who Will Dominate the Future of Trillions of Digital Assets?" , "25 Years of Stablecoin Track: Latest 20,000-Word Research Report: Under International Financial Competition and Regulatory Game, Where Will the Global Stablecoin Landscape Go? A Panoramic Analysis of Its Institutionalization Process, Policy Factors and Compliance Path, Competitive Landscape and Risk Challenges" ). Most provisions of the EU's Crypto-Asset Markets Act have also come into effect this year, which is conducive to Sei and Xiaomi launching formal stablecoin payment pilot programs next year. However, the regulatory policies for Web3 and Web2 are quite different. They both need to be subject to compliance regulations in the target regions, and Web3 regulatory policies are often in a state of rapid iteration. Whether Sei and Xiaomi are prepared to actively comply with regulations should Web3 regulatory policies change in the future remains to be seen.

Regardless, the collaboration between Sei and Xiaomi represents a groundbreaking attempt to integrate the Web3 and Web2 ecosystems. Whether Xiaomi can capitalize on this opportunity and whether Sei can successfully penetrate the Web2 market remains to be seen.

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Disclaimer: This report was prepared by Web3Caff Research. The information contained herein is for informational purposes only and does not constitute any forecast, investment advice, proposal, or offer. Investors should not rely on such information to buy or sell any securities, cryptocurrencies, or adopt any investment strategies. The terminology and opinions expressed in this report are intended to help understand industry trends and promote the responsible development of Web3, including the blockchain industry, and should not be construed as explicit legal opinions or the views of Web3Caff Research. The views expressed in this report reflect the author's personal opinions as of the stated date and are not related to the position of Web3Caff Research, and are subject to change. The information and opinions contained in this report are derived from proprietary and non-proprietary sources that Web3Caff Research believes to be reliable, and do not necessarily cover all data, nor is their accuracy guaranteed. Therefore, Web3Caff Research makes no warranty of any kind regarding their accuracy and reliability, and assumes no liability for errors and omissions arising in any other way (including liability to any person arising from negligence). This report may contain "forward-looking" information, which may include forecasts and predictions, and this document does not constitute a warranty of any forecast. Reliance on the information contained in this report is entirely at the reader's discretion. This report is for informational purposes only and does not constitute investment advice, a proposal or offer to buy or sell any securities or cryptocurrencies or to adopt any investment strategy. Please strictly comply with the relevant laws and regulations of your country or region.

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