What Is Sui Network (SUI): The Ultimate Guide in 2024

As a seasoned blockchain enthusiast with a knack for deciphering the nuances of this ever-evolving digital landscape, I find myself drawn to the Sui Network like a moth to a flame. With my fingers on the pulse of the crypto world, I’ve seen countless projects come and go, but few have caught my attention quite like Sui.

Sui is a blockchain designed specifically for swift, low-lag transactions, making it an excellent option for real-time applications such as gaming, decentralized finance (DeFi), and other rapid services. Launched in May 2023, its focus lies on prompt transaction confirmation and high processing capacity. Smart contracts on Sui are written in Move, a programming language based on Rust that is optimized for fast and secure transaction execution.

One significant aspect that sets Sui apart is its unique approach to handling transactions. Unlike traditional systems that process transactions sequentially, this network can manage numerous transactions concurrently. This feature reduces bottlenecks and allows for a staggering transaction processing speed of approximately 300,000 per second. This high-speed performance is made possible by transaction parallelization, which enables multiple, self-contained types of transactions to reach an agreement simultaneously. This agreement process is facilitated by data structured as independent objects, allowing for greater efficiency and scalability.

Essentially, this means that when Sui nodes are working, they can handle transactions that don’t rely on each other at the same time. This is made possible by a Byzantine Fault Tolerant Delegated Proof-of-Stake (DPoS) consensus mechanism, which keeps the network secure.

Quick Navigation

Sui’s Rise in the Crypto Market
How Does Sui Work?
- Network Security
- Object-Oriented Data Model
- Key Differences Between UTxO, Account-Based, and Object-Oriented Models
- Programming Language
SUI Tokenomics
Mysten Labs: The Founders of Sui
Investors and Backers
Sui Use Cases and Top Projects
Closing Thoughts – Sui Network’s Outlook

Sui’s Rise in the Crypto Market

Sui’s standout characteristics have propelled it to prominence within the cryptocurrency market. Over a year since its debut, the network has already reached significant milestones, piquing the curiosity of more and more users. Sui, often referred to as the “Solana Killer,” is a blockchain that’s attracting attention.

According to Artemis data, the number of daily active addresses hit its highest point in September 2024. This surge can be attributed to an increase in the value of SUI, its native coin, which soared to a record-breaking $2.36 and boosted its market capitalization to approximately $4.9 billion. Remarkably, the token’s price climbed even higher, reaching a peak of $3.3 in November 2024.

Part of Sui’s strong foundation relies on an object-based system, a topic we delve into in the following section.

How Does Sui Work?

As a dedicated researcher in the realm of blockchain technology, I must highlight that Sui stands out from its peers due to several significant advancements it boasts. Unlike other networks, Sui operates on a Decentralized Proof of Stake (DPoS) consensus mechanism. In this system, elected validators are responsible for verifying transactions and creating new blocks within the network. The quantity of SUI tokens one holds as a validator directly impacts the magnitude of their voting power in the network’s decision-making process.

Sui, in addition, employs zero-knowledge proofs (ZKPs) to enhance user privacy and secure transactions. It makes use of Groth16, a zk-SNARK variant, within its Move programming language for efficient execution of ZKPs, suitable for its fast network. As a result, Sui can manage large transaction volumes while ensuring swift proof validation.

By using ZKPs, Sui enables:

Confidential Transactions: Users can confirm they have the necessary funds for a transaction without revealing their full financial details.
Secure Identity Verification: ZKPs enable identity verification while safeguarding personal information—ideal for applications that require user authentication.

Network Security

To clarify further, Sui’s operation relies on a Decentralized Proof of Stake (DPoS) system. Digging deeper into the technology, the protocol employs an advanced consensus mechanism called Mysticeti. This engine is designed to deliver near-instant transaction confirmation, often achieving completion times under a second. In blockchain jargon, “finality” refers to the moment when a transaction becomes permanent and cannot be reversed, which Sui’s system aims to achieve swiftly with Mysticeti.

The protocol’s design for fast finality is crucial for applications where speed and certainty are essential, like gaming and high-frequency DeFi trading.

Examining the engine’s specifications, we discover it follows a Design based on a Directed Acyclic Network (DAG).

If you’re not entirely familiar with DAGs, don’t worry – they can be quite intricate and perplexing. However, let me attempt to simplify it for you. Imagine DAG as a method to structure data in a straightforward manner, without any loops or cycles. It resembles a tree where every branch progresses forward, never retracing its path.

Directed: Each path has a direction, like a one-way street. If you go from point A to point B, you can’t go back to A on that same path.
Acyclic (No Loops): There are no loops. Once you move forward, you can’t end up back where you started, ensuring everything follows a straight line from start to finish.

Directed Acyclic Graphs (DAGs) ensure a logical flow of operations. They indicate the sequential order in which tasks must be executed, considering that one task might depend on another’s completion. Moreover, since DAGs don’t allow cycles or loops, they prevent repetition and going backward, making them ideal for tasks where a clear, unidirectional sequence is essential.

Many current blockchain systems utilize Directed Acyclic Graphs (DAGs) to gather data quicker, as they enable several operations to transpire concurrently, eliminating the need for sequential waiting. Notable networks like Avalanche and IOTA are prominent examples adopting this technology.

Yet, it’s worth mentioning that Directed Acyclic Graphs (DAGs) can be quite intricate when it comes to their practical application. This complexity primarily stems from the fact that they haven’t undergone extensive real-world testing over a long period, despite having been in existence for several years.

Object-Oriented Data Model

We previously discussed Sui’s object-oriented framework, but what does it mean?

In essence, this blockchain data model alters the way data is organized, retrieved, and managed. The objective is to improve scalability, adaptability, and simplify the process for developers by deviating from conventional methods such as UTxO (Unspent Transaction Output) and account-based systems.

These brings two key aspects to how Sui works:

Everything is an object:

In the design of Sui, every item of data is considered an individual entity with its unique identity, ownership, and attributes, following an object-oriented methodology. This approach facilitates direct management of digital assets by users, simplifying transactions and modifications to the system’s state.

Ownership and Transfer: Digital assets, such as tokens or NFTs, are managed as independent objects, allowing easier transfers akin to handling physical items.
Independent Processing: Transactions involving different objects can be processed simultaneously, boosting scalability and network throughput by reducing processing bottlenecks.

Dynamic asset management:

Sui supports various object types to meet different needs:

Owned Objects: Modifiable only by their owner, reinforcing security.
Shared Objects: Accessible by multiple users while maintaining consistency through consensus.
Immutable Objects: Permanent, unchangeable entries on the blockchain, serving as stable references.

Such adaptability empowers programmers to construct apps featuring intricate ownership patterns and evolving resources, beyond the constraints imposed by conventional methodologies. However, what makes this approach distinctive when compared to traditional methods?

Key Differences Between UTxO, Account-Based, and Object-Oriented Models

Different blockchain models vary in their approach to handling transactions and data, each providing distinct benefits and drawbacks when it comes to scalability, security, and user-friendliness. For instance, the Sui blockchain stands out with its object-oriented data model, opening up fresh possibilities and applications for developers, particularly those engaged in the creation of intricate, innovative protocols and ownership systems.

UTxO Model: Secure but complex. It tracks unspent outputs from previous transactions, providing a high degree of security but adding complexity for developers, especially in managing multiple transaction outputs in applications like DeFi.
Account-Based Model: Simpler, but with a lot of scalability limits. Ethereum’s account-based model directly stores and updates balances with each transaction, simplifying development and user experience. However, it demands strict sequencing of transactions, which can limit scalability due to potential bottlenecks.
Sui’s Object-Oriented Model (Flexible and scalable): Sui’s object-oriented model treats every data element as an individual object, allowing concurrent transaction processing. It supports flexibility and enhances scalability, reducing transaction wait times and opening possibilities for applications like dynamic NFTs and complex asset management.

But to be fair, object-oriented models have their pros and cons. Let’s take a look:

Pros explained:

Code Reusability: Inheritance allows reuse of existing code, reducing redundancy and development time.
Modularity: Encapsulation creates self-contained objects, making troubleshooting and collaborative work easier.
Scalability and Flexibility: Adaptable to new requirements, making it ideal for complex systems.
Security: Encapsulation and abstraction protect data integrity by hiding complex implementations.
Intuitive Design: Mirrors real-world entities, providing developers with a natural, understandable framework.

Cons explained:

Complexity: Can become difficult to manage with extensive use of inheritance and polymorphism.
Performance Overhead: Typically slower due to larger program size and object management demands.
Limited Applicability: Not suited for problems that don’t align with an object-based structure.
Design Challenges: Effective implementation requires skilled planning, as poor design can lead to fragmented or hard-to-maintain code.

In essence, object-oriented designs offer advantages such as reusability and scalability, yet they require meticulous planning to prevent complications related to complexity and efficiency, and their maintenance tends to be costlier compared to other models.

Programming Language

The protocol employs the Move programming language, originally designed for Facebook’s Diem initiative, which makes Sui a robust and flexible network ideal for managing digital assets. This attribute is particularly advantageous for Decentralized Finance (DeFi) and Non-Fungible Token (NFT) applications.

One significant competitor of Sui, a well-known player in the DeFi landscape, is Aptos. What draws these projects to this programming language is its origin as a language tailored for blockchain applications. It emphasizes a resource-oriented methodology to boost security, adaptability, and efficiency when writing smart contracts, which is particularly appealing.

Using Move strengthens Sui’s appeal for apps dealing with confidential data, like financial institutions and social media platforms. Its dynamic gas pricing system effectively manages resources by altering fees according to network demands, striking a balance between efficiency and predictability.

SUI Tokenomics

Within the system, the native token, SUI, plays various roles. Primarily, it’s utilized for settling transaction costs. Additionally, token holders who choose to support network security and governance can stake their SUI tokens.

Just as with numerous other chains, SUI holders possess the power to influence network-level choices. They are able to cast votes on proposed advancements and enhancements, put forth suggestions, and engage in discourse about potential improvements.

In simple terms, the token serves as the foundation for the economic structure of the Sui system. It encourages involvement and ensures long-term stability by having a limited supply of 10 billion tokens allocated into various sectors, which helps in nurturing the expansion and decentralization of the network.

50% is allocated to the community, supporting delegation programs, grants, R&D, and validator rewards.
20% is set aside for early contributors.
14% is reserved for investors.
10% is held by Mysten Labs for development.
6% is designated for app testers and the Community Access Program.

Mysten Labs: The Founders of Sui

Sui was created by a team consisting of Evan Cheng, Adeniyi Abiodun, Sam Blackshear, George Danezis, and Kostas Chalkias, who had previously worked as engineers in Meta’s Novi division. They established their new company, Mysten Labs, to introduce this project.

Sui’s adventure started in March 2022 when Mysten Labs shared their plan for a fresh Layer 1 blockchain. To make sure this blockchain was robust and efficient, they initiated incentivized test networks from August 2022 onwards. These testing phases were primarily aimed at fine-tuning operator skills and adjusting token economics, which in turn enhanced Sui’s structure and readied it for a broader user community.

On the 3rd of May, 2023, the official launch of Sui’s main network took place. This event enables developers to construct decentralized apps (dApps), taking advantage of Sui’s streamlined attributes such as rapid transaction processing and minimal delay.

Within just a short time of being activated, the Sui platform successfully handled an astonishing 65.8 million transactions on a daily basis, all while avoiding sudden surges in gas fees and maintaining smooth operation even under heavy traffic, showcasing its impressive ability to handle large volumes effectively without collapsing or becoming congested.

Investors and Backers

In the month of December 2021, Mysten Labs managed to raise $36 million during their Series A funding round, with Andreessen Horowitz (a16z) as the main investor. This was subsequently followed by a massive Series B round worth $300 million, with FTX Ventures leading the investment of $140 million. The company’s valuation was set at $1 billion as a result of this round. Notable participants in this funding round included Jump Crypto, Apollo, Binance Labs, Franklin Templeton, Coinbase Ventures, Circle Ventures, Lightspeed Venture Partners, Sino Global, Dentsu Ventures, Greenoaks Capital, and O’Leary Ventures.

Sui collaborates with Space and Time, a reliable computational foundation, to boost Zero-Knowledge Proof (ZKP) functionalities. Through this alliance, developers gain access to tools that enable the integration of off-chain data safely alongside on-chain transactions. Notable advantages include:

Data Integration: Developers can use zero-knowledge smart contracts for secure, auditable computations.
Game Development: In gaming, ZKPs enable verifiable reward systems tied to in-game events, improving transparency and user engagement.

Sui Use Cases and Top Projects

Sui’s versatility and strong capabilities make it suitable for numerous industries. In the gaming world, its secure and efficient asset handling allows for intricate in-game interactions. In the Decentralized Finance (DeFi) realm, its security-centric design empowers developers to create robust financial applications. Sui also accommodates social networking by fostering decentralized platforms that prioritize user data management and resist censorship.

It should be noted that Sui charges fees based on the computation demand and the amount of storage a transaction consumes, making it suitable for NFTs because users can receive storage refunds.

In October of 2024, the Total Value Locked (TVL) within Sui’s DeFi ecosystem surpassed $1.1 billion. Notable applications operating on the Sui network include:

Navi Protocol: NAVI Protocol is a decentralized liquidity platform enabling users to borrow and lend cryptocurrency without intermediaries. It offers key DeFi tools, such as Isolation Mode for secure asset management and Automatic Leverage Vaults for efficient leveraged positions, ensuring streamlined and secure transactions.
Suilend: Suilend is a decentralized lending protocol on the Sui Network, created by the team behind Solana’s Solend. It leverages Sui’s high scalability and low fees to offer a smooth lending and borrowing experience:
Cetus: Cetus is a leading decentralized exchange (DEX) on the Sui and Aptos blockchains, known for enhancing trading efficiency and liquidity management through several innovative features. It uses a Concentrated Liquidity Matching Model (CLMM) to maximize liquidity usage, supports range orders, and enables users to set specific trade price points.
Scallop: Scallop is a DeFi money market on the Sui Network, focusing on lending and borrowing digital assets. It allows users to lend to liquidity pools to earn interest and offers loans secured by collateral.
Aftermath Finance: Aftermath is a comprehensive platform for trading, investing, and generating yield. The app uses the Sui network’s speed and cost-efficiency to create a transparent, user-friendly experience for traders, investors, and arbitrageurs. It was built by Sui Move developers and spans multiple DeFi and GameFi products tailored to different risk levels and market strategies.

Closing Thoughts – Sui Network’s Outlook

Suirise is a top-tier blockchain platform that effectively handles intricate and agile applications spanning multiple industries, such as gaming, decentralized finance (DeFi), non-fungible tokens (NFTs), among other areas.

Sui’s distinctive design allows it to excel in tasks demanding speed, flexibility, and safety. Notably, this quality puts Sui in fierce competition with other layer-1 platforms such as Solana, Aptos, and Ethereum.

As a crypto investor, I’m excited about the network’s commitment to swift, low-lag transactions and its adaptable structure. This setup seems to be paving the way for an impressive future, as it draws in a wide variety of projects that are steadily fortifying the Sui ecosystem.

2024-11-13 13:35