Sui ($SUI)

What Is Sui?

Sui is a Layer-1 blockchain that is designed to limit how long it takes to execute smart contracts and support scalability for decentralized applications (dApps).

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The blockchain uses an object-centric data model that stores digital assets and their attributes on-chain but outside of smart contracts. And parallel processing helps to finalize simple transactions, such as asset transfers, in real time while maintaining security.

Sui is named after the element water in Japanese philosophy, a reference to its fluidity and flexibility that developers can use to shape the development of Web3, according to the project’s whitepaper.

How Does Sui Work?

The Sui blockchain shares common features with other networks, such as processing smart contracts, settlement of transactions, issuing tokens, and development of dApps. However, it introduces several new features that aim to solve the blockchain trilemma:

  • Improving speed;
  • Improving scalability;
  • Maintaining high standards of security.

These include Sui’s consensus engine and the Move smart contract programming language developed by MystenLabs.

The Sui network uses a permissionless set of validators to reduce latency. Its delegated proof-of-stake (dPoS) approach allows validators to stake SUI coins to validate transactions. SUI is also used to execute custom programs, as a medium of exchange, and to provide incentivizes to developers.

However, Sui has had a low rate of transactions per second (tps) since the mainnet’s launch. While in testing, the network has reached 297,000tps, data from the Sui blockchain explorer shows that it has a peak of 1,367tps.

What Is $SUI Token?

The $SUI token is the Sui blockchain’s native crypto. It has captured the attention of the markets since it launched its blockchain and native token in May 2023. The SUI token price soared by 2,000% on its first day of trading from its presale value.

Tokenomics

$SUI has a total supply of 10 billion. A share of the total supply was released at launch, and the remaining tokens will be released over the coming years or distributed as future stake rewards, according to the project’s documentation.

MystenLabs is allocating the tokens as follows:

  • 20% to early contributors;
  • 14% to investors;
  • 10% to the treasury;
  • 6% to a Community Access Program and Sui app testers;
  • 50% to a community reserve managed by the Sui Foundation. The reserve will be used for delegation and grant programs, validator subsidies, and research and development.

There are three main sets of participants in the Sui economy:

  • Sui blockchain users;
  • SUI token holders who can stake their tokens to validators and participate in the proof-of-stake mechanism;
  • Validators who manage transaction processing and execution. Staked SUI tokens provide access to on-chain voting on protocol upgrades and other governance decisions.

Sui charges gas, or processing, fees on all network operations. It uses them to reward validators and prevent spam and denial-of-service (DOS) attacks.

Sui has a storage fund that it uses to shift staking rewards and compensate future validators for the cost of previously stored on-chain data.

What Is $SUI Used For?

The SUI coin has four main uses on the blockchain:

  1. Staking to enable holders to participate in the dPoS consensus mechanism and receive rewards for validating and securing the network;
  2. Paying gas fees to execute and store transactions or other operations;
  3. Acting as a medium of exchange or a store of value, as well as more complex functionality enabled by smart contracts;
  4. Providing access to governance, including on-chain voting proportional to the validator’s stake.

Sui grants rewards to holders that allocate their votes to other users. This incentivizes validators to act honestly, as delegators can switch their allocation each day.

How to Buy $SUI

While some crypto tokens initially launch on decentralized exchanges (DEXs) and gain centralized exchange listings as they grow in popularity, SUI was able to secure listings on major exchanges, including Binance, Bybit, Kucoin, and OKX from launch.

You can also buy the token on Coinbase, Bitfinex, Kraken, Bitstamp, Gate.io, and Huobi.

What Makes Sui Unique?

Sui Move is a variation of the Move smart programming language for building smart contracts that Facebook created for the Diem blockchain. Sui Move is written in the Rust code and defines the creation, transfer, and ownership of assets.

While most blockchains design smart contracts around accounts that send, receive, and hold the tokens that interact with smart contracts, Sui Move is based on programmable objects.

Developers can create rules for how the objects work, how they are transferred, and whether they can change. This makes programming assets for gaming and non-fungible tokens (NFTs) easier.

Objects in Sui Move can be modified by the owner – such as in token transfers, voting, and sending messages on dApps – or they can be modified by anyone, such as in interacting with public smart contracts.

Transactions for owned objects do not need to reach a consensus to be finalized, as there are specific algorithms that allow transactions to be executed in parallel. But shared objects do need consensus from validators for the transactions to be added to the blockchain.

Unlike blockchains such as Bitcoin and Ethereum – where each transaction must be approved by all validators, which can cause bottlenecks – Sui’s parallel transaction execution allows for more efficient transaction processing and increased throughput.

The Future of $SUI and the Sui Project

The SUI coin price history has been volatile since its launch. A presale and initial coin offering (ICO) in April offered SUI tokens at $0.03 and $0.10, respectively. In the token’s first trading session on May 3, the price soared to $2.16, a 2,000% return for the public sale investors.

The price then fell below $1 at the end of May on profit-taking. After the U.S. SEC announced its lawsuits on June 5, the decline in the SUI price accelerated, as the agency has taken the view that most cryptocurrencies other than BTC are trading as unlawful securities. SUI dropped to a low of $0.56 on June 10.

However, the price rebounded by as much as 27% in the following days, as Sui’s developers announced a new governance proposal to introduce liquid staking. With the team scheduled to release two mainnet upgrades in June, the future of the Sui project will depend on whether the enthusiasm around its technology can be sustained.

The value of the token is likely to remain volatile in line with the wider cryptocurrency markets, but it will also be influenced by the adoption of the SUI blockchain.

Who Created Sui?

Sui was created by the company MystenLabs, which was founded by executives Evan Cheng, Adeniyi Abiodun, Sam Blackshear, George Danezis, and Kostas Chalkias. They led the development of the Facebook wallet program Novi and the Diem (previously Libra) blockchain-based stablecoin payment system.

The Sui Foundation is supporting the development of the ecosystem as an independent organization providing grants to developers and creators.

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Nicole Willing
Technology Journalist

Nicole is a professional journalist with 20 years of experience in writing and editing. Her expertise spans both the tech and financial industries. She has developed expertise in covering commodity, equity, and cryptocurrency markets, as well as the latest trends across the technology sector, from semiconductors to electric vehicles. She holds a degree in Journalism from City University, London. Having embraced the digital nomad lifestyle, she can usually be found on the beach brushing sand out of her keyboard in between snorkeling trips.