Sui is a platform that aims to reduce the time it takes to execute smart contracts and prioritize scalability for its decentralized applications (dapps).
To differentiate itself from other blockchains like Ethereum, Solana, and Polkadot, Sui introduces several architectural designs to increase its speed and scalability without sacrificing the blockchain’s security. These include the consensus engine, parallel transaction execution and Move smart contract programming language.
Sui’s delegated proof of stake (dPoS) network allows validators to stake SUI, the platform’s native cryptocurrency, to validate transactions. also ties the platform together by being used to execute custom programs, acting as a medium of exchange, and by incentivizing users that support its development.
Who created Sui?
is developed by MystenLabs, a company founded by Evan Cheng, Adeniyi Abiodun, Sam Blackshear, George Danezis and Kostas Chalkias. The founders form a collection of executives and architects that led the development of the Diem blockchain and stablecoin payment system as well as the Facebook wallet program Novi, both of which have since been discontinued.
MystenLabs is also responsible for developing and maintaining the Move smart programming language that is native to several platforms. This includes Move, a variation of Move that is essential to running the Sui blockchain, and essential for developers who wish to create dapps.
Lastly, Sui is overseen by the Sui Foundation, an independent organization that aims to support ecosystem developers and creators through a host of grants.
How does Sui work?
The network offers many features common to other blockchain platforms such as smart contract processing and dapp development, transaction settlement, and token issuance. However, several features separate it from other platforms with the goal to solve for the blockchain trilemma of speed, scalability and security.
, a relatively new Layer 1 blockchain, aims to address scalability and security concerns by implementing a unique architecture. Here’s a breakdown of how functions:
Focus on Scalability:
- Parallel Transaction Execution: Unlike traditional blockchains that process transactions one after another (serial execution), Sui leverages a parallel execution engine. This engine can handle multiple transactions simultaneously, significantly increasing transaction throughput. It achieves this by taking a snapshot of the network’s current state and processing transactions in parallel without compromising data integrity.
Security through Object-Centric Design:
- Object-Based Data Model: stores data on the blockchain in a structured manner using objects. These objects encapsulate data and the code that governs how it can be interacted with. This approach improves data organization and simplifies security checks.
- Move Programming Language: utilizes the Move programming language for writing smart contracts. Move prioritizes safety and security by employing static verification. This means the code is checked for errors before deployment, minimizing vulnerabilities that could be exploited by malicious actors.
Consensus Mechanism:
- Proof-of-Stake (PoS): relies on a Proof-of-Stake consensus mechanism to secure the network. Validators chosen based on their staked tokens (native cryptocurrency) are responsible for verifying transactions and maintaining network integrity. Validators are rewarded with additional for their contributions.
Additional Features:
- Gas Fees: utilizes a gas fee system to cover the computational costs associated with processing transactions. Users pay gas fees in SUI, and the network dynamically adjusts fees based on demand.
- Account Model: employs a unique account model with built-in resources. These resources represent data associated with an account, and transactions update these resources. This streamlined approach simplifies smart contract development and enhances data storage efficiency..
Sui Move
Move is a programing language for building smart contracts and is a variation of the Move language created by Facebook for the Diem blockchain.
Most blockchains, like Ethereum, design their smart contracts around “accounts”, which are addresses that can receive, hold, and send tokens native to that blockchain and interact with smart contracts.
The Move language, however, is built around programmable “objects”, which are assets specific to the blockchain. Developers can create custom rules for these objects (including their ability to change) and define rules on how the objects can be transferred. The use of objects makes programming assets much easier using the Move language, particularly for non-fungible tokens (NFTs) and gaming assets.
Sui’s consensus engine
Objects in can be categorized in two different ways:
- Owned – Object that can be modified by its owner. Scenarios include token transfers, sending messages on dapps, and voting.
- Shared – Objects that can be modified by anyone. Scenarios include interacting with public smart contracts.
is optimized for simple transactions and the platform’s ability to scale is directly related to how consensus is reached for each type of object.
Owned objects, for example, do not need to reach consensus for transactions to be finalized. Instead, there are specific algorithms in place that grant almost immediate approval for their transaction, meaning that many transactions can be executed in parallel.
Sui’s parallel transaction execution from single consensus mechanism transactions present in Bitcoin and Ethereum (and most other blockchains). In those platforms, each transaction is required to be approved by all nodes and processed in the order in which it is received before being added to the public ledger. This typically creates a bottleneck as more people use the blockchain which affects transaction throughput.
Shared objects, on the other hand, need to obtain consensus from validators for transactions to be added to the network’s ledger in a specified order.
How is the SUI token used?
The blockchain’s native token,, is used to maintain and operate the Sui network, specifically to pay for transaction and operational fees and as a reward to validators for securing the network.
By owning and staking SUI, validators gain the ability to vote on network upgrades, with each vote being proportional to the amount of tokens they stake. Sui also grants rewards to holders that delegate their tokens to validators, and thus allocating their votes to other users. Validators are incentivized to act honestly because delegators can choose to switch their allocation at the end of each epoch (defined as a 24-hour period).
The token, the native asset on the Sui blockchain, serves multiple purposes within the Sui network’s ecosystem. Here’s a breakdown of its key functionalities:
- Staking: token holders can participate in securing the Sui network through a process called staking. Sui utilizes a Proof-of-Stake (PoS) consensus mechanism, where validators who lock up their SUI tokens are responsible for verifying transactions and maintaining network security. As a reward for staking their SUI tokens, users receive additional SUI.
- Transaction Fees: is the primary currency used to pay transaction fees on the Sui network. These fees compensate validators for their work in securing the network and processing transactions. Compared to some other blockchains, Sui aims to offer lower transaction fees.
- Governance: token holders have the potential to participate in the governance of the Sui network. The specifics of how this will work are still under development, but it’s envisioned that SUI token ownership will give holders some voting rights on decisions that shape the future of the Sui blockchain.
- Unit of Exchange: can potentially be used as a unit of exchange within decentralized applications (dApps) built on the Sui blockchain. While still early days, the vision is for SUI to serve as a medium for buying and selling goods or services within these dApps.
- Store of Value: In theory, could also function as a store of value, similar to how some people view Bitcoin. However, the price of SUI, like most cryptocurrencies, is still relatively volatile, and its long-term stability as a store of value is yet to be determined.
Overall, the token plays a vital role in the Sui network. It incentivizes participation through staking rewards, facilitates transactions through fee payments, and paves the way for future governance and potentially broader utility within the Sui ecosystem. As the platform matures, we can expect to see more innovative use cases emerge for the SUI token.
Token distribution
There is a total supply 10 billion tokens. Mysten Labs will allocate 20% of the tokens to early contributors, 14% to investors, 10% to its treasury, 6% to a Community Access Program and app testers, and 50% to a community reserve managed by the Foundation. The community reserve will be used for delegation programs, grant programs, research and development, and validator subsidies.
Disclosure: SUI is not available in the US.
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