What is SUI Blockchain? What You Need About the SUI Ecosystem

Sui is a permissionless Layer-1 blockchain that enables the development of diverse applications at high speed and low cost. Designed to be developer friendly, it allows developers to build their applications easily, while ensuring a smooth and efficient user experience. Sui Token (SUI) serves as the network's native cryptocurrency, facilitating payments and various transactions.

To improve network security, the Sui project uses several advanced cryptographic algorithms and can quickly switch between them. Sui uses a Delegated Proof of Stake (DPoS) consensus mechanism to validate on-chain transactions, with a focus on providing the necessary infrastructure for validation and increasing transaction speed, similar to other Layer-1 solutions such as Bitcoin and Ethereum.

History of SUI

Sui launched its testnet in 2022 and its mainnet in May 2023. The blockchain was developed by Mysten Labs, a company led by several senior executives from Meta. In September 2022, Mysten Labs raised $300 million to further develop Sui, with major investors including Circle, Binance Labs, and Lightspeed Venture Partners. The Sui Foundation, an independent organization, supports the Sui community and related projects.

After launch, the foundation collaborated with centralized exchanges such as KuCoin, OKEx, and Bybit to sell SUI tokens to Discord users and customers of these exchanges. Binance users staked more than $4 billion in tokens to acquire SUI coins.

The Sui Foundation aims to make Web3 accessible to more than a billion users worldwide through the development and global reach of the Sui blockchain. Key goals include providing transparent services to the Sui community, open communication to foster trust among users, and encouraging community participation in Sui activities and projects.

The foundation believes that all users should have equal access to Sui applications, and to ensure fair distribution of resources, regulations should be applied uniformly. The foundation seeks to create a platform where everyone's voice is heard, encouraging involvement in the decision-making process.

Main Features of Sui

The Sui blockchain consists of three main components that work together to facilitate fast, low-cost transactions:

1. Move Programming Language

Sui uses a programming language called Move to execute smart contracts. This open source language was originally developed for the Diem Meta project and is also used in Aptos, a Layer-1 blockchain founded by former Meta employees. Move is a cross-platform language that does not include blockchain-specific elements such as accounts, transactions, time, or cryptography. While most blockchains track changes to user accounts, Sui instead tracks the movement of objects (tokens) that trigger transactions. Sui also uses the Move Prover tool, which allows developers to verify the correctness of their code, making it easier to ensure the reliability of smart contracts and blockchain applications.

2. Delegated Proof of Stake (DPoS) Consensus Mechanism.

Sui achieves consensus through a Delegated Proof of Stake (DPoS) system, where a fixed group of validators processes transactions every 24 hours. SUI holders select these validators based on the proportion of total tokens staked. Validators are rewarded with SUI tokens for maintaining network security. Sui staking tokens are locked for a limited period of time, after which holders can withdraw or change validators. Currently, the network operates with 100 validators, contributing to faster transaction processing but also leading to increased centralization, making Sui more vulnerable to 51% attacks compared to some other blockchains.

3. Parallel Transaction Processing

To improve scalability, Sui processes transactions in parallel. Unlike most blockchains that execute transactions sequentially, Sui's parallel processing allows it to handle up to 120,000 transactions per second, as opposed to 15 transactions per second on Ethereum and 4,000 transactions on Solana. Sui categorizes transactions into simple and complex types. Simple transactions, such as token transfers between accounts, can bypass consensus protocols and be processed almost instantly. For complex transactions, Sui uses “Narwhal” to separate transactions from the consensus engine and “Bullshark” to quickly identify pending transactions that require consensus.

3. Use Cases and Benefits of SUI Token

Providing the computing power to process blockchain transactions and store the results requires a fee, known as “gas”, which is paid using the network's native currency. The SUI token was created to facilitate this, allowing users to manage transactions within the Sui network. The main use cases of SUI include:

• Gas Fee Payment
  Transactions and activities on Sui incur gas fees to execute and store them. The SUI token allows easy payment of these fees.
• Buying, Selling and Investing
  Like many other cryptocurrencies, SUI is a liquid asset used for various purchases, financial transfers and investments. The availability of Sui smart contracts also facilitates the development of more complex payment systems within the Sui ecosystem.
• Risking
  Sui allows users to participate in staking and earn rewards. Users can stake SUI tokens through the Delegated Proof of Stake system, receiving rewards for contributing to the growth and security of the network.
• Participation in Project Voting
  As a decentralized project, Sui seeks to offer everyone the opportunity to participate in decision-making. SUI holders can vote on on-chain matters such as network upgrades, helping guide blockchain development and improvements.

SUI Tokenomics

SUI's total supply is capped at 10 billion tokens, with a portion disbursed after mainnet launch, while the remaining tokens will be distributed gradually to users or allocated as staking rewards in the coming years. Currently, about 11% of the tokens (over 1.165 billion units) are in circulation.

The Sui Foundation holds control of 50% of the tokens, using them to fund various initiatives and provide validator subsidies. Additionally, 10% of the total tokens are allocated to the Mysten Labs treasury, 20% are distributed to early contributors, 14% are sold to raise capital, and 6% are dedicated to the Community Access Program.

SUI Token Price

With over one billion SUI tokens in circulation, SUI's market capitalization has surpassed $1.782 billion. SUI's initial launch price was $0.10, and has experienced significant fluctuations since then. According to CoinMarketCap data, the lowest price recorded was $0.3643 in October 2023, while the all-time high was $1.72 in May 2023.

How to Get SUI Tokens?

SUI tokens are available for trading on both centralized and decentralized exchanges, making purchasing SUI the primary method of acquiring the asset. Additionally, the Sui network supports SUI staking. Blockchain users can stake their SUI tokens on the network and, in return, receive rewards in the form of SUI tokens. The staking process requires tokens to be locked for a certain period of time, after which holders can withdraw or change their validators.

Best Wallet for Storing SUI

Several wallets have been developed to store SUI tokens, each offering unique features and functions. In addition to storing SUI, this wallet allows users to create NFTs and access Web3 applications. For example, Ethos Wallet includes an address book feature that simplifies token transfers to friends and family. It also allows purchasing and exchanging tokens within the wallet, allowing users to transact without the need for an external exchange. Suiet Wallet includes a built-in browser, providing access to a variety of Web3 applications. Other recommended wallets for storing SUI include:

Cryptocurrencies Related to SUI

As already mentioned, Sui is a Layer 1 blockchain that focuses primarily on increasing transaction speed and reducing fees. Other Layer 1 cryptocurrencies, such as Bitcoin and Ethereum, serve the same purpose as Sui in this regard.

Bitcoin (BTC)

Bitcoin is the world's largest cryptocurrency and one of the earliest major blockchain projects, bringing blockchain technology and digital assets into everyday life. Bitcoin's success paved the way for thousands of similar projects, helping shape the broader crypto market. By decentralizing data storage, Bitcoin enables the implementation of ownership rights in the digital asset field. Like many other Layer 1 blockchains, Bitcoin is working to optimize its network and increase transaction speeds, hosting other cryptocurrencies such as Bitcoin Cash (BCH) on its network. A major development in this direction is the Lightning Network, a Layer 2 payment protocol that enables instant, high-volume Bitcoin transfers without increasing transaction fees.

Ethereum (ETH)

Ethereum is another major blockchain project that entered the market with the cryptocurrency Ether (ETH) and currently supports many digital assets on its network. Launched to create a platform for developing decentralized applications (dApps), Ethereum allows users around the world to easily write and deploy software on its network. Smart contracts, one of Ethereum's key innovations, enable the implementation of various systems, including automated payment solutions, on the blockchain. Developers can use Ethereum smart contracts to integrate various features into applications without intermediaries. Currently, many cryptocurrencies, including Tether (USDT), Chainlink (LINK), and Shiba Inu (SHIB), operate on Ethereum's ERC-20 standard.

The Future of SUI

Since Sui is a relatively new project in the crypto world, making concrete predictions about its future is a challenge. Launched in 2023, Sui has experienced significant price fluctuations. Compared to other new projects, Sui has been well received by the market, quickly ranking within the top 50 cryptocurrencies by market capitalization. If the Sui Foundation and its development team stick to their roadmap and achieve their goals, SUI has the potential for price appreciation and further growth.

Conclusion

The Sui blockchain and cryptocurrency were developed to increase the speed of blockchain transactions and reduce costs, and the crypto market responded positively. Sui uses the Move programming language for package development and has launched its native SUI token to facilitate on-chain transactions. Security is a core value for Sui, which supports various cryptographic algorithms to maintain network security. Like many other Layer 1 blockchain projects, Sui is focused on strengthening the infrastructure to support application development and enable fast transaction processing.

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