Sui Blockchain Guide: Revolutionary Scalability Solution?

What is Sui?

Sui is the world’s first permissionless Layer 1 blockchain completely designed from the ground up. They are a decentralized, proof-of-stake blockchain with horizontally scaleable throughput and storage.

Ex-members of the Meta team came together to form Mysten Labs– the company behind Sui. They are also building Move, which is an open-source smart contract programming language.

However, Sui is not a derivative or an add-on of the Diem network. Instead, it is a step-function advancement in blockchain technology that is designed to allow creators and developers to build experiences for web3 users.

Who is the team behind Sui?

Evan Cheng, Adeniyi Abiodun, Sam Blackshear, George Danezis and Kostas Chalkias co-founded Sui. They are co-founders are former senior leaders of Facebook’s (Meta) advanced blockchain research and development organization. They were responsible for delivering some of the most advanced open source components such as the programming language, execution engine and cryptography of the Diem network.

What are Sui’s main features?

Sui has the following main features:

  • Sui is able to scale horizontally without any upper bounds. This enables them to meet application demand whilst maintaining extremely low operating costs per transaction.
  • The design of Sui is groundbreaking in that it eliminates a critical bottleneck in existing blockchains. In traditional blockchains, transactions (though independent of each other) are pushed into sequential blocks which creates wasteful computational power. Sui’s innovation is that they will organise data into independent objects, meaning that transactions can be executed in parallel.
  • The network is also able to scale throughput horizontally because it enables parallel agreement on causally independent transactions. They achieve this through Byzantine consistent broadcast, which eliminates the overhead caused by global consensus yet without sacrificing safety and liveness guarantees.

Sui’s unique features mean there will be unmatched scalability and instant settlement of transactions. The platform can scale horizontally to meet the increasing demands of applications. Sui’s authorities can add workers to increase processing power in order to meet growing network capacity. The result of this would be lower gas fees even when network traffic is high, and thus better user experiences for web3 apps.

How do users participate in Sui?

There will be 3 types of participants: Users, token holders and Validators.

  • Users will be responsible for submitting transactions to the platform in order to create, change and transfer digital assets or interact with more complex applications.
  • Token holders have the option of delegating their tokens to validators and participating in their proof-of-work mechanism. SUI token holders also have the right to participate in Sui’s governance and decide on the future direction of the project.
  • Validators manage the processing and execution of transactions on the Sui platform.

Who are Sui blockchain’s investors?

Sui has so far raised US$36 million in Series A funding. Sui’s Series A funding round was led by Andreessen Horowitz’s a16z. Other participants in Sui’s funding include Redpoint, Lightspeed, Coinbase Ventures, Electric Capital, Samsung Next, Slow Ventures, Standard Crypto, NFX, and Scribble Ventures, among others.

Mysten Labs’ Series B funding round is well underway, with Sui being valued at over US$2 billion. Mysten has recently closed a US$300 million fundraise led by FTX Ventures. Other Series B investors include Coinbase Ventures, Jump Crypto, Circle Ventures, a16z (again), Binance Labs, and O’Leary Ventures, among others.

What is the $SUI crypto token?

The SUI token is the native asset of the Sui platform with a total supply capped at 10,000,000 (i.e. 10 billion). A portion of SUI’s total supply will be released at the mainnet launch of the platform. The remaining tokens will be vested over the coming years or distributed as future stake reward subsidies.

The SUI token will have 4 main purposes: Staking, gas fees, as an underlying asset of the economy, and lastly for governance. Specifically:

  • SUI can be staked in order to participate in the platform’s proof-of-work mechanism.
  • SUI is the asset used for paying gas fees required to execute and store transactions or do various operations on the platform.
  • SUI is used as an asset on the platform with all the standard features of traditional money- used as a unit of account, a medium of exchange, and a store of value. It can even have more complex functions enabled by smart contracts across the Sui platform.
  • SUI token holders have the right to participate in on-chain governance voting on various issues affecting the Sui platform such as protocol upgrades.

Click here for more details on SUI tokenomics.

What is the Sui economic model?

There are five major components of the Sui economic model:

Sui blockchain’s economic model (Source: Medium)
  • SUI token: the platform’s native token.
  • Gas fees: all network operations on the platform require gas fees. Gas fees are rewarded to participants in the proof-of-stake mechanism. It can also be used to prevent spam and denial-of-service attacks.
  • Storage fund: This fund is used to redistribute past transaction fees to future validators. That is, users will pay fees upfront for both computation and storage. The storage fees which are collected are deposited into a fund used to adjust the future share of staking rewards. This is so that when there is a high demand for on-chain storage, validators will receive additional rewards to compensate for their costs. When demand is lower, rewards will also be adjusted accordingly. Users however will be able to save funds through a “deletion option” which allows them to delete previously-stored on-chain data. By exercising this option, users can receive a storage fund rebate.
  • Proof-of-stake mechanism: Used to select, incentivize and reward platform operators i.e. the validators and SUI delegators.
  • On-chain voting: for voting and deciding on governance and protocol upgrades.

What is the Sui Explorer?

The Sui Explorer was launched in August 2022 and is a trusted transparency tool for those who are using and building on Sui. The main purposes of the Sui Explorer are as follows:

  • Maintain the most updated and accurate on-chain data, activity, and metrics;
  • act as a fast, reliable, and transparent tool for debugging issues and auditing;
  • enable the lookup, verification, and tracking of assets and contracts; and
  • provide useful smart contract development and features that will be unique to Sui Move.

Major features of Sui Explorer are as follows:

  • Sui Explorer builds on existing blockchain explorers by providing go-to-definition support for all smart contracts. Clicking on any struct will direct users to the package and defining module which improves code navigation, readability, and learnability;
  • object details are rendered recursively, thereby providing an optimized view of objects on the Sui Explorer;
  • address details are divided into (1) Coins; and (2) NFTs for convenient navigation. Users will be able to have a clear view of the assets and transactions with this address. Coins that are of the same type are also automatically aggregated. However, an expanded paginated view of the information is also available;
  • transactions will show more details such as gas fees paid, objects updated, token amount and the relevant addressing. For some transactions, additional information such as bytecode of published modules and emitted events can also be included;
  • Sui Explorer will also have a validator table and node map showing the active full nodes and their locations. The purpose of this is to provide information on Sui’s network operations as the network continues to mature.

What is the Sui Wallet?

The Sui Wallet allows users to create addresses and view and manage their assets on the Sui network. The Sui Wallet can also interact with dApps. Similar to MetaMask, Sui Wallet will be a Google Chrome extension so users can simply access it on their Chrome browsers.

Frequently Asked Questions (FAQs)

When will Sui be released?

There is no release date for the Sui platform yet.

When is the SUI crypto token sale?

There is currently no information on when the SUI token will be sold.

When is the SUI ICO?

No announcement has been made on the timing of the SUI ICO yet.

Is Sui the same or related to Aptos?

No, Sui and Aptos and completely different and unrelated projects. The only connection between the two projects is that both teams have previously worked in blockchain development at Facebook (Meta).

The information provided in this article is intended for general guidance and information purposes only. Contents of this article are under no circumstances intended to be considered as investment, business, legal or tax advice. We do not accept any responsibility for individual decisions made based on this article and we strongly encourage you to do your own research before taking any action. Although best efforts are made to ensure that all information provided herein is accurate and up to date, omissions, errors, or mistakes may occur. 
Disclosure: Authors are invested in cryptocurrency projects and have cryptocurrency holdings - including those covered on this website. 

Angela Wang
Angela Wang
Angela loves cryptocurrency, technology that improves our lives...and food. Anything that merges these worlds together is even better.

Stay Connected

15,500FollowersFollow
157,893FollowersFollow
268,000SubscribersSubscribe

Latest Articles