Decentralized Blockchain With Varied Key Features & Utility 

SUI is a decentralized layer-1 permissionless blockchain that offers great transaction speed at a low cost. It is designed to support a variety of applications. It is like the Ethereum and Bitcoin network that provides infrastructure for a system of validations and transactions. However, through increased throughput, increased scalability, and reduced latency, the blockchain sets itself apart from other layer-1 solutions.

Decentralization is regarded as the base of blockchain technology. In a way, it reduces the throughput as there are more validators and miners on the network. This decreases the consensus speed. The biggest challenge faced by the decentralized network is scalability. This refers to the ability to increase the transaction speed.

Different blockchains handle scalability differently. The layer-2 blockchain handles the scalability through sharding off-chain processing and consensus algorithm modifications. However, they have to include security considerations such as smaller sets of trusted blockchain nodes.

Recently, several blockchains have introduced their solutions to the blockchain trilemma. SUI is a layer-1 blockchain that also comes with its solution to scalability, security, and decentralization with its technology.

SUI focused on increasing scalability without compromising on security. For enhanced security and speed, the blockchain uses a combination of a native programming language called Move. It also supports parallel transactions and delegated proof-of-stake consensus mechanisms.

History of SUI

SUI launched the incentivized testnet in August 2022. The mainnet went live on May 3, 2023. It has been developed by Misten Labs, which is led by several former senior executives for Meta’s now-defunct digital wallet, NOVI.

At the time of its launch, SUI partnered with central exchanges like Kucoin, OKX, and Bybit to sell their tokens to their Discord community and exchange users.

In September 2022, Mysten Labs raised $300 Million in investment in the series B funding round. This has been used for the development of the platform.Furthermore, the company has backing from the popular venture capitals namely Circle, a16z, NCSoft, etc.

How Does the SUI Blockchain Work?

SUI has some basic elements like Low cost, Move language, Parallel transaction execution, and SUI consensus mechanisms. Move is the language used by this blockchain to execute smart contracts. It is called a cross-platform language without blockchain-specific concepts like accounts, transactions, cryptography, etc.

Sui tracks the movement of tokens. The movement shows the transactions and these transactions can be mutable, immutable, or even involve multiple people since this blockchain does not have the same type of wallet-to-wallet limitations as others. The blockchain also uses Move Prover that allows developers to check the validity of any smart contract

Delegated Proof of Stake Mechanism

It uses the delegated proof of stake mechanism to reach a consensus. In this, the limited number of validators can make transactions in a fixed period of 24 hours. SUI holders select the set of validators based on their share of the total stake. This is determined by the amount of SUI tokens staked by the holders.

The blockchain validators receive rewards in SUI coins for operating and securing the network. The system distributes the reward to all the coin holders who delegate to the validator stake. A small amount is deducted which is known as a commission fee for the validators.

The network has currently 100 validators which allows for faster transactions and great speed but this also makes it more vulnerable to attacks. It is more centralized than other blockchains.

The chances of vulnerability increase because the lower the number of validators the more conspiracy to manipulate the network for one’s benefit. To counteract this low validator count, SUI operates using 2000 full nodes which enhances the network decentralization.

Parallel Transaction Execution

This is a type of transaction that is executed by this blockchain to increase scalability, while other blockchains use sequential transactions in which the transactions are made one by one in sequence.

The other path selected by this blockchain is differentiating the transactions. It is divided into two categories: the simple and the complex. The simpler transactions include the transactions from one account to another that need to bypass the consensus protocol and be processed almost immediately. This way, it increases the throughput.

The complex transactions include Narwhal and Bullshark. Narwhal is the directed acyclic graph-based memepool and Bullshark is for specific ordering of transactions and permits the slower validators to contribute.

What is SUI Coin and Its Utility?

SUI coin is the native currency of the blockchain. It is used for on-chain transactions and also to enhance the security of the blockchain. Currently, SUI has a market cap of $549,95,089. The coin has a total supply of 10 Billion and a circulating supply of 965,577,711 SUI.

SUI coin is used to pay gas fees for all the functions on the blockchain. It is used by the players to own the in-game assets. Validators stake SUI tokens to take part in the consensus mechanism and the tokens will be cut as punishment in case of frauds and scams.

There are notable use cases of this blockchain. It provides a great gaming experience. As of May 2023, there are about 9 gaming projects on SUI. This includes Abyss World, Run Legends, Cosmocadia, Panzerdogs, etc.

The built-in security helps the developers to build secure financial packages. Hence, it is optimal for DeFi protocols which include Turbose Finance, Aftermath Finance, Cetus, etc. It also facilitates NFT projects. Currently, it hosts 7 NFT projects which include Abyss World, Run Legends Suia, etc.

The tokenomics of SUI shows that 50% of the token supply is controlled by the SUI Foundation. This seems like a large amount but is used for delegating programs. Research and development etc. 20% is allocated to the early contributors, 10% to the Mysten Labs, and 14% of the supply is sold to raise funds. The remaining 6% is used for community access programs.

Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.