Every day, the technology world is inundated with thousands of news stories. Today's buzzword is "Sui Blockchain" a new layer 1 blockchain network that is causing quite a stir in the market.
Sui, the first product from Web3 infrastructure firm Mysten Labs, is one of the more intriguing blockchain offerings. It's a rapidly expanding platform that could pose a threat to Solana. Sui Blockchain aims to support Web3 and NFTs, whereas Solana focuses on DeFi. The Diem successor believes that its unique features and programming language have solved the problems of scalability, security, and gas fees.
Sui's recent announcement of a successful $300 million Series B funding round indicates that the blockchain platform is not just a trend
So, what makes this newcomer unique, and what are its objectives? Continue reading to learn more about the Sui blockchain, its components, architecture, key features, and tokenomics model.
1. What is Sui Blockchain?
Sui is a permissionless, PoS-powered Layer 1 blockchain that aims to provide instant settlement and high throughput while also enabling a wide range of next-generation latency-sensitive decentralized applications. It enables developers to create Web3 projects that will serve the expected massive waves of Web3 users.
Sui is backed by Mysten Labs - the Web3 infrastructure organization, which was founded by former senior executives at Meta’s Novi Research. It is made up of experts in cryptography, programming languages, and distributed system
According to Evan Cheng (Mysten Co-Founder and CEO), Web3 is currently in the dial-up phase, where processes are slow, expensive, insecure, and difficult to build. That is why Sui is launching with the goal of eliminating middlemen and allowing users to seamlessly integrate and interact with their favorite products across applications.
2. Sui Blockchain Tokenomic explained
SUI (also known as Mysten Labs coin) is the SUI blockchain's native token, with a total supply of ten billion tokens. Here are the four primary functions of the SUI token.
- Use the SUI token to stake and participate in the PoS consensus.
- Use the SUI token to pay gas fees for transactions and other operations.
- SUI works as an asset that serves as a medium of exchange
- It entitles Sui blockchain investors to participate in on-chain voting
The Sui blockchain tokenomics model includes three key participants:
- Users: use SUI platform to create, and transfer digital assets (such as NFTs), or communicate with Dapps powered by smart contracts.
- SUI token holders: delegate their tokens to validators to take part in the Proof-of-Stake mechanism. With SUI blockchain investors, they can also participate in Sui’s governance.
- Validators: carry out transaction processing and execution on the Sui platform.
3. How does Sui Blockchain work?
According to Sui’s technical documentation, the blockchain consists of three main components:
- Objects: Sui has programmable objects that are built and managed by Move-enabled smart contracts, which are also referred to as objects. Sui's objects are further classified as mutable data values and immutable packages.
- Transactions: Any modifications and updates to the Sui ledger are described by transactions.
- Validators: Independent validators manage the entire Sui network. On a different machine, each of them is running a unique instance of the Sui software.
b. Move Language
Move is a programming language that allows you to create Sui-compliant Web3 contracts. Furthermore, Sui's Move programming language is based on the widely supported Rust programming language, which differs from Move in subtle but noticeable ways.
Additionally, Sui is the "Ethereum killer" making Move the Solidity rival. It was designed to address issues within Solidity. Move is intended to represent digital assets and perform secure operations on them.
Smart contracts are used to implement functionality on most blockchains. Tokens on Ethereum are smart contracts that keep track of balances linked to a set of public keys. This is done outside of the distributed ledger because the Ethereum protocol is unaware of its existence.
While most smart contract platforms are built around accounts, Sui's storage is built around objects with Move. These objects are programmable and can be manipulated via smart contracts. Sui's global state is comprised of a collection of programmable objects.
4. Key features of the Sui blockchain
a. Parallel execution
In traditional blockchain networks, transactions are executed one by one or sequentially. When a transaction is created, it will get included in a block and if someone trades tokens on the decentralized exchange, it will get included after the first transaction. But with the parallel execution system of Sui Blockchain, instead of executing one transaction after the other, users can do a lot of transactions at one time.
Sui can apparently execute up to 120,000 transactions per second thanks to parallel transaction execution. Ethereum can handle 7–15 transactions per second as a point of comparison. Visa has a 24,000 transaction per second processing speed.
b. Gas fees
One of the unique things about the Sui blockchain is how they handle gas fees. Right now, one huge complaint of most blockchain networks is the expensive gas fee. In traditional blockchain networks, gas fees go up and down based on the network demand. It means that when people want to the network at one time, the gas price goes up and pretty costly. However, the Sui blockchain can offer a more stable gas fee with epochs. Sui runs in a sequence of epochs (24 hours). Each epoch is administered by a validators' committee. From one epoch to the next, the permission-less validator set gets rearranged. Instead of seeing the price of gas fluctuate minute by minute, it will maintain stability over a 24-hour period.
Users can delegate validators their stakes. By delegating your stake, you can increase your voting power and receive a cut of the fees. In addition, the Sui network keeps its security features as long as two-thirds of the total stake is allotted to honest parties.
c. Improved features for Web3
Sui claims that by providing various tools based on the Sui SDK, they will enable software engineers to create DApps and other Web3 projects with improved UX (software development kit). For example, here are some Web3 features that Sui Blockchain support:
- On-chain DeFi and traditional finance (TradFi) primitives
- Reward and loyalty programs
- Complex games and business logic
- Asset tokenization services
- Decentralized social media networks
- Upgradable NFTs
The Sui blockchain seems to have a lot of potential, and many blockchain proponents seemed to approve of its technological features, development approach, and goals. It is also true that Sui will have to compete fiercely with other blockchains and continuously develop its ecosystem if it hopes to gain wider popularity.
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