During the recent boom of Layer 1 blockchains, “Sui” has become one of the most searched keywords in the cryptocurrency community. The reason for this is the price increase of the SUI token and the continuously rising TVL (Total Value Locked) of its ecosystem. So, what makes this project special? Let’s explore the Sui blockchain and its ecosystem with Tonraffles through the article below.
Table of Contents
What is Sui blockchain ?
Sui is a blockchain project developed based on the Move programming language, created by the Diem team (the stablecoin project that was canceled by Facebook). Sui was designed to address the multi-dimensional scalability issues of traditional blockchains, optimizing resource usage and expanding operational throughput.
Sui is often compared to Aptos, a blockchain project that made waves in the market due to its massive airdrop for the community and also uses the Move programming language. Additionally, in the midst of the 2022 downtrend, Sui successfully raised over $336 million in investments from major funds.
See more:
- What is Solana (SOL) and How Does This Blockchain Work?
- What is Ethereum? Quick Learning for Long-Term Understanding
- Polygon 2.0: A New Era of Scalability and Security for Ethereum
Sui’s Operational Structure
A transaction flow on the Sui blockchain involves 7 steps, each corresponding to a specialized task of different components.
- Transaction Creation and Signing: After a user creates a transaction and confirms it with their key, the transaction is sent to the next component to check for authenticity.
- Initial Verification: The transactions are then sent to validators (full nodes), where the validators perform a series of checks for validity, security, and signature verification. The validated transaction is then returned to the user with the validator’s signature.
- Collecting Validator Feedback: Next, the user collects feedback from other validator groups (comprising two-thirds of the stake on Sui) to form a valid transaction certificate among three parties: the user, the validating validator, and other validator groups.
- Submitting Certificates to Validators: Once the user has gathered the certificates, they send them to all validators for storage and verification.
- Execution by Validators: Validators check all certificates and execute their assigned tasks.
- Validation and Proof Collection: After validators verify and confirm the validity, the user collects this feedback as proof to finalize the transaction.
- Checkpoint Formation: Sui forms checkpoints for all consensus commitments, which are also used to manage protocol reconfiguration.
In simpler terms, Sui automatically treats every user transaction as a peer-to-peer transaction. Validators play the role of approving and executing transactions in parallel by using Byzantine Consistent Broadcast with high throughput.
Highlights of Sui Network
Cheap and Stable Gas Fees
Currently, most blockchains in the market have highly volatile gas fees that change quickly, causing obstacles in the user transaction experience. Recognizing this, Sui has designed gas fees in a nearly unique way in the market.
Specifically, Sui operates in 24-hour epochs, where validators are only allowed to vote on one gas fee per epoch (reference price). Then, when transactions occur in the protocols, these protocols send specific incentives to the validators to keep transaction fees as close to the reference price as possible throughout the epoch.
Narwhal & Tusk
As mentioned above, most transaction validation work is in the hands of validators, which unintentionally creates a certain threat to the blockchain if these validators are hacked or intentionally harm the network.
Narwhal & Tusk is the consensus mechanism used by Sui to isolate the data transmission and consensus process.
- Tusk: Orders and sequences transactions.
- Narwhal: Ensures data availability during the consensus process.
Scalability
Unlike other blockchains that organize data into blocks and then process them, Sui processes them in parallel by organizing data into independent objects through Byzantine Fault-Tolerant (BFT) consensus and Byzantine Consistent Broadcast (BCB).
Move Programming Language
Alongside Aptos, Sui is one of the projects developed and advanced based on the Move programming language from Diem. By using this language, Sui has avoided the drawbacks that Solidity brings to developers and users. Move allows users to self-determine their assets by defining them as customizable objects.
Basic information about SUI
Allocation
- Early Contributors: 20%
- Investors: 14%
- Mysten Labs Treasury: 10%
- Community Access Program (Public Sale): 6%
- Community Reserve: 50%
What is SUI used for?
- Payment of gas fees on the network.
- Voting for project governance proposals.
- Providing liquidity on the network.
- Staking rewards.
Sui Project Development Team
“Sui was founded by Mysten Labs. The project’s five co-founders, along with several Mysten employees, have previously worked on developing the Diem project and the Move programming language.”
Sui team
the development roadmap of Sui
In 2021, following a successful fundraising round, Sui made significant strides in accordance with its pre-established plans.
Q1 2022: Sui made its debut, impressing the market with its features, capabilities, and scalability.
Q2 2022: Sui launched DevNet and introduced tokenomics, incentives, and functionalities of SUI. Additionally, the project enabled users to run full nodes.
Q3 2022: An incentivized Testnet was launched for functional testing and network mechanisms. During this period, Sui Wallet was also introduced, featuring asset management and interaction with DApps.
Q4 2022: The validator recruitment program was initiated, offering rewards up to 2000 SUI per phase for participating validators.
Q2 2023: Sui deployed its mainnet and listed SUI on major exchanges, including Binance.
2024: Continued development and expansion of the ecosystem.
the ecosystem of Sui
According to data provided by DefiLlama, by late 2023 and early 2024, the Sui ecosystem saw a doubling of inflows monthly, with Total Value Locked surpassing $300 million USD. Throughout its recent development phase, the Sui ecosystem has embraced numerous projects spanning various sectors including SocialFi, Name Service, GameFi, and Wallet.
sui ecosystem
The reason for this growth is attributed to the rapid expansion of projects within the Sui ecosystem. Notably, Scallop Lend, NAVI Protocol, and Cetus Protocol have seen remarkable growth.
Scallop Lend (TVL: $62.2 million USD) is the first DeFi project funded by the Sui Foundation. This lending platform offers users low borrowing rates and high lending yields, with staking APY reaching over 20% at times. Additionally, Scallop Lend provides an AMM tool for self-managing crypto assets on a unified platform.
NAVI Protocol (TVL: $53.2 million USD) is the second-largest lending protocol on Sui, with a total TVL of over $54 million USD. NAVI Protocol operates with a lending pool model, allowing users to participate either as liquidity providers or borrowers in a decentralized manner.
Cetus Protocol (TVL: $47 million USD) is an AMM DEX platform designed to create a robust and flexible liquidity network, enhancing the DeFi user experience.
summary
Above are the details about Sui and its rapidly advancing ecosystem in recent times. Through this article, tonraffles hopes to provide readers with an overview of Sui as well as the entire project ecosystem.
