Sui Blockchain Development

Sui is a first-layer smart contract platform that shares similarities with established blockchains like Ethereum, Cardano, and Solana. However, Sui stands out as a permissionless blockchain, unlike some closed, corporate-controlled networks.

In a permissionless system, Sui is a public blockchain where anyone can conduct transactions or become a validator, without a centralized team controlling the network. This open and decentralized approach is a key differentiator for Sui.

The Sui project was spearheaded by former Meta (Facebook) employees who were previously involved with the Diem (formerly Libra) blockchain project. Diem was designed for limited use cases, focusing on small payments between a restricted number of custodial wallets.

In contrast, the Sui Network team envisions a future where users can seamlessly move digital assets, such as tokens and NFTs, across virtual worlds without losing functionality or ownership rights. This ambitious goal aims to make Sui the leading blockchain for developers to create a wide range of applications, from gaming NFTs to financial services.

To achieve this vision, the Sui Network team is working to solve the blockchain trilemma – the challenge of creating a platform that is simultaneously decentralized, scalable, and secure. By addressing these core challenges, Sui aims to provide a robust and accessible blockchain infrastructure for developers and users alike.

Through its permissionless design, Sui offers an open and inclusive ecosystem, empowering a diverse range of participants to contribute to the network’s growth and development. This innovative approach sets Sui apart as a pioneering Layer 1 blockchain platform with the potential to redefine the capabilities and accessibility of distributed ledger technology.

The blockchain trilemma, which outlines the inherent trade-offs in blockchain design, was described by Ethereum founder Vitalik Buterin. In the past, he noted that blockchain developers have to sacrifice one of the qualities. For example, the network can be scalable and secure, but still have problems with centralization. In fact, this question was of interest to early cryptographers in the 1980s.

The Sui Network project is being developed by Mysten Labs, a team with roots in Meta (the former Facebook). The project’s origins can be traced back to the Novi wallet prototype research conducted at Facebook’s Novi division. The initial concept was for the Novi wallet to interact with cryptocurrencies, including Facebook’s own token, Diem (formerly known as Libra).

In 2021, key members of the Novi team left Meta to establish Mysten Labs, with the goal of rethinking Web3 technologies from the ground up. This new venture by the Mysten Labs team gained significant attention in September 2022, when the company successfully completed a $300 million investment round. The funding round was led by FTX Ventures, the venture capital arm of the prominent cryptocurrency exchange FTX.

In April 2023, the coin entered the main network. The developers launched IEO on the Bybit, OKX, and KuCoin exchanges. As a result, $56.5 million worth of tokens were sold. The project is managed by the DAO Sui Foundation.

Siu Technology

Consensus between validators is required to confirm transactions with shared objects (public smart contracts that interact with multiple users). It is achieved using Consensus Engine technology. The process consists of the following steps:

Transactions are sent to Narwhal (a high-bandwidth mempool). It is responsible for synchronizing data coming from validators. Unconfirmed transactions are sent to Narwhal.

Smart contracts organize data and issue certificates. To confirm transactions, the validator must sign them. Data is organized using Bullshark technology, which allows for smooth operation even for nodes with low processing speeds.

After receiving the required number of certificates, the transaction is added to the chain.

A notable feature of the Sui network is its impressive performance capabilities. In theory, Sui has no capacity limits in terms of the number of transactions the network can process per second. This is made possible through the network’s optimization for simple transactions.

In the Sui network, each transaction is either an operation between users or an asset manipulation. These two types of transactions are optimized accordingly:

Property Objects: These are assets that can only be changed by a specific owner.

Common Objects: These are assets that can be modified by different users.

This distinction in asset types allows Sui to abandon the verification mechanism (consensus) for property objects. Without the need for this verification, users can instantly receive confirmation of their transactions.

Additionally, Sui’s parallel processing mechanism enables the network to process transactions concurrently, without the need to wait for the completion of previous transactions before initiating new ones. However, it is important to note that users can currently only make one transaction at a time, as the functionality to initiate several transactions in a single click is not yet available.

These design choices in Sui, focused on optimizing for simple and efficient transactions, contribute to the network’s impressive performance capabilities, which are a notable feature of the Sui ecosystem.

Collateral

Sui (SUI) is the native coin of the blockchain of the same name. The asset is not supported by fiat money and top cryptocurrencies. The price depends on the success of the network, community and investors. It is used to pay fees, buy NFTs and link assets in network DEX pools. Therefore, cryptocurrency quotes directly depend on the volume of funds locked in the chain. Despite the low indicators (more than 1000 times less than Arbitrum, according to DefiLiama), the popularity of the network is growing.

The asset performs a key function in the ecosystem with more than 60 dApps. The project has raised over $300 million in private funding rounds and $55 million in IEO.

According to the developers’ plans, the long-term growth of the digital currency will be ensured by limited emission, a positive news background around the project and attracting new startups to the ecosystem. Half of the supply (5 billion coins) is reserved for funding projects in the network and payments to validators.

The main purpose of the coin is network management (voting in the DAO). There are also other functions:

Staking.

Payment for gas in the network.

A liquid asset in ecosystem applications (exchanges, NFT marketplaces, social networks, cross-chain bridges, games).

The chain operates on innovative technology that reduces fees and speeds up transactions. This attracts third-party teams to the ecosystem. In the future, the creators plan to add additional functions to the native coin.

Early investors could purchase the currency as part of the IEO. To get on the whitelist, it was necessary to be active in social communities, participate in competitions or testnets. The token was launched simultaneously on 3 major CEX on May 3, 2023. An airdrop is not planned, so the only way to receive the coin is to buy it. The maximum turnover is observed for the SUI/USDT pair. The coin can also be exchanged for TUSD, BTC, TRY, KWR, BNB, USD, EUR.

Users can earn on exchange rate differences in both the long and short term. Speculators use margin trading and futures. Additional ways to earn are also available:

Deposits

Traders can block SUI on the Binance platform in anticipation of price growth. The deposit term is unlimited, the rate is 6.86% per annum. The advantages of this method of earning are low risk and flexibility. Users can withdraw money in any coin. The received reward does not need to be returned.

Yield farming

Another way to earn on Binance is to support liquidity in pools. Investors place 2 assets at the same time and receive higher returns. Unlike analogues on DEX, here the profit is paid in 3 coins (included in the pool and BNB). There is no need to pay a commission for supplying liquidity and receiving interest.

Sui Network’s Emerging Use Cases

SoWork, a service offering virtual workspaces in the metaverse, is exploring the use of Sui to create composable and mutable non-fungible tokens (NFTs) for its clients. Similarly, Lucky Kat Studios, the team behind Panzerdogs, sees new opportunities in the non-fungible token market for gaming that Sui’s capabilities open up.

The Sui Wallet, similar to MetaMask, will be a Google Chrome extension, allowing PC and smartphone users to easily access assets and interact with decentralized applications (DApps) within the Sui ecosystem.

Mysten Labs, the team behind Sui, is reportedly headquartered in the United States. This is a significant development, as the largest number of crypto investors, venture capital funds, and digital asset trading platforms are located in the United States. However, the evolving crypto asset regulatory framework, with differences in views between U.S. regulators like the SEC and CFTC, presents both opportunities and challenges for the project.

Sui’s Strengths and Risks

Strengths:

• Strong team with top developers from Facebook’s Novi project.
• Substantial interest from leading venture capital funds like a16z.
• Horizontal scalability and high throughput capabilities.

Risks:

• Slow adoption due to the need for developers to learn the Move programming language.
• Legal risks as a U.S.-headquartered project, potentially subject to unexpected regulatory decisions.
• Technological and security risks common to any new blockchain network.

Conclusion

Sui Network is an ambitious project aimed at addressing critical issues in the crypto industry. With a strong team, resources, and innovative design, Sui is positioned to explore new use cases, particularly in the areas of composable NFTs and decentralized applications. However, the project’s success will depend not only on its technical merits but also on effective business management and navigating the evolving regulatory landscape.