What Is Sui (SUI)?
Sui (SUI) is a layer-1 blockchain designed to address the limitations of existing blockchain platforms like Bitcoin. Unlike traditional blockchains that use sequential transaction processing, which can lead to slower speeds and congestion, Sui employs a parallel processing approach, allowing for multiple transactions to be validated simultaneously, significantly enhancing transaction speed and scalability.
Developed by Mysten Labs, Sui uses delegated proof of stake (DPoS), a consensus mechanism that increases efficiency by allowing a smaller group of trusted validators to secure the network, compared to Bitcoin’s energy-intensive Proof of Work (PoW). Additionally, Sui is built on the Move programming language, which focuses on resource safety and modularity, providing a secure environment for building smart contracts. The result is a more scalable, efficient, and secure platform for decentralized applications (dApps) and peer-to-peer transactions.
Who Created Sui?
Sui was created by Mysten Labs, a company founded by a group of former engineers from Meta (formerly Facebook). The founding team includes Evan Cheng, Adeniyi Abiodun, Sam Blackshear, George Danezis, and Kostas Chalkias. These engineers were previously part of the Novi division at Meta, where they worked on the development of blockchain technologies.
Founding Team Background
Evan Cheng: Co-founder and CEO of Mysten Labs, Evan Cheng has an extensive history in engineering and development. Before founding Mysten Labs, he served as Director of Research and Development at Facebook's Novi, where he led efforts on blockchain and cryptocurrency research. Cheng is a recognized innovator in the field, having been instrumental in the development of the Move programming language, which was initially created for Facebook's Diem project. He has also previously worked at Apple for over a decade.
Adeniyi Abiodun: Co-founder and Chief Product Officer (CPO) of Mysten Labs. Previously, he was a Product Lead at Meta, leading crypto infrastructure products and establishing the Novi Crypto Platform team. Before joining Meta, Adeniyi held roles such as Head of Product for Blockchain at VMware and Architect for Blockchain Cloud Platform at Oracle. He also co-founded PeerNova Inc. and CloudHashing, contributing to product development and the Bitcoin cloud mining space.
Sam Blackshear: Co-founder and Chief Technology Officer (CTO) of Mysten Labs. He holds a Bachelor's in Computer Science and Philosophy from Williams College and a Ph.D. in Programming Language from the University of Colorado Boulder. Before Mysten Labs, Sam Blackshear was a Principal Engineer at Meta, where he contributed to the creation of the Move programming language and worked on projects for the Libra/Diem platform, focusing on security and performance.
George Danezis: Co-founder and Chief Scientist of Mysten Labs. He earned his PhD in Computer Security and Cryptography from the University of Cambridge in 2004, where he also completed his Bachelor of Arts in Computer Science. Before co-founding Mysten Labs, George was a Research Scientist at Facebook, working on the Novi team, and co-founded Chainspace. He also served as a Faculty Fellow at The Alan Turing Institute and advised at Vega Protocol. His career includes significant research contributions at Microsoft Research Cambridge and academic roles at K.U. Leuven and Cambridge University.
Kostas Chalkias: Co-founder and Chief Cryptographer of Mysten Labs, where he contributes his expertise in blockchain security and cryptographic protocols. Before joining Mysten Labs, Kostas had extensive experience in cryptography and secure systems design, focusing on developing protocols that enhance privacy and security in blockchain networks.
Financial Backers
Mysten Labs has secured significant funding from leading venture capital firms. In its Series A round, the company raised US$36 million from Andreessen Horowitz (a16z). Other notable investors in subsequent funding rounds include Jump Crypto, Apollo, Binance Labs, Franklin Templeton, Coinbase Ventures, Circle Ventures, Sino Global, Dentsu Ventures, and more.
How Does Sui Work?
Sui is a layer-1 blockchain designed to offer high scalability and transaction processing speed through its unique combination of technologies and mechanisms. These include an object-centric data model, the Move programming language, a delegated proof-of-stake (DPoS) consensus system, and parallel transactions.
Object-Centric Model
Sui's architecture uses an object-centric model, meaning it tracks individual assets, known as "objects," instead of account balances. An "object" refers to any item or asset on the blockchain, such as coins, tokens, or NFTs. Each object has its own state, which can change independently of other objects.
Independent Transaction Validation: By tracking objects separately, Sui can validate multiple transactions independently, as long as they don’t involve the same object. This reduces the need for every node to validate all transactions, improving scalability and transaction processing efficiency.
Types of Asset Ownership: Sui supports different types of ownership. For example, assets owned by an address (like coins or NFTs), assets owned by another object (such as an NFT part of a collection), and shared assets (e.g., in Automated Market Maker pools).
Move Programming Language
Sui uses the Move programming language, a secure and efficient language initially developed by Meta for its Diem project. Move is specifically designed for creating and managing digital assets and smart contracts on the blockchain.
Simplified Asset Management: Move allows developers to define custom rules for digital assets, such as tokens or NFTs. Unlike traditional programming languages, Move treats digital assets as resources that can’t be duplicated or lost accidentally, making it ideal for blockchain applications where network security is critical.
Cross-Platform Flexibility: Move is designed to be flexible and adaptable, not tied to any specific blockchain. It doesn’t rely on traditional blockchain concepts like accounts or transactions, which means developers can use it to create a wide range of decentralized applications (dApps) that are not limited by the traditional constraints of other blockchains.
Move Prover: An important feature of Move is the Move Prover, a tool that allows developers to check their code for errors before deploying it on the blockchain. This helps ensure that smart contracts and applications will function as intended, reducing the risk of bugs or security vulnerabilities.
Delegated Proof-of-Stake (DPoS) Consensus Mechanism
Sui employs a delegated proof-of-stake (DPoS) system to secure the network and achieve consensus. In this model, SUI token holders delegate their tokens to validators who are responsible for processing transactions and maintaining the network.
Validator Selection and Rewards: Validators are chosen based on the amount of SUI tokens staked with them. They validate transactions and earn rewards, which are distributed to the delegating SUI holders after a small commission fee is deducted.
Epoch-Based Staking: SUI tokens are staked for specific periods, called epochs. After each epoch, token holders can withdraw their tokens or change their delegated validator, providing flexibility and encouraging active participation in the network.
Parallel Transaction Execution
To enhance scalability and transaction processing speed, Sui implements parallel transaction execution, which differs from the sequential processing used by many blockchains.
Simple vs. Complex Transactions: Sui categorizes transactions into simple and complex. Simple transactions, like token transfers, can bypass the consensus protocol and process almost instantly, increasing throughput.
For more complex transactions, Sui uses a combination of two systems called Narwhal and Bullshark.
Narwhal: Narwhal is a Directed Acyclic Graph (DAG)-based mempool that organizes transactions waiting for validation. It separates the transaction ordering process from the consensus mechanism, allowing for more efficient handling of transactions.
Bullshark: Bullshark is the consensus engine that determines the order of transactions after they are identified by Narwhal. It ensures that transactions are processed in a consistent order across the network, maintaining the security and integrity of the blockchain.
By using Narwhal and Bullshark together, Sui can efficiently process more complex transactions, ensuring they are handled quickly and securely.
Real-world Applications
Finance The Sui blockchain offers a robust platform for financial services by providing low transaction fees and near-instant settlement, enabling users to conduct peer-to-peer transactions that closely mirror real-time market conditions, enhancing the efficiency of financial operations. Builders can develop innovative financial products that leverage a native central limit order book, providing greater liquidity and flexibility.
Commerce For brands looking to engage customers, Sui provides a cost-efficient way to integrate digital assets like NFTs into their products, allowing businesses to create dynamic and interactive customer experiences, to encourage repeat engagement and loyalty.
Gaming Sui empowers game developers by offering a platform that supports Web3 features, unlimited scalability, near-instant transaction speed and predictably low costs, allowing developers to create more dynamic and interactive games without worrying about network limitations or high transaction fees. With full control over transfer policies and in-game economics, developers can design unique gaming experiences, ensure secure asset ownership, and implement custom game mechanics.
Why Trade SUI?
The SUI token is the native currency of the Sui blockchain, serving multiple roles that are essential to the ecosystem’s operation and governance.
Transaction Fees: SUI tokens are used to cover transaction fees on the network. Every transaction or operation on the Sui blockchain requires a small fee paid in SUI, ensuring that the network remains secure and efficient.
Staking and Network Security: SUI plays a vital role in maintaining network security. By staking SUI and locking up their tokens, holders support the network’s security and integrity. In return for their participation, stakers receive rewards in the form of additional SUI tokens. Staking SUI not only secures the network but also offers a way for SUI holders to grow their holdings over time.
Governance and Decision Making: SUI holders have the power to influence the future direction of the Sui Network through governance. By holding and staking SUI tokens, individuals can vote on key decisions and proposals that affect the network. The more SUI a holder has, the greater their influence in governance, making SUI ownership integral to shaping the network's development and policies.
SUI Tokenomics
Name: Sui
Symbol: $SUI
Total Supply: 10,000,000,000 SUI
Current Circulating Supply: 2,596,086,127 SUI (25.96% of the total supply)
Current Price: $0.8418 (on 29 August, 2024)
Market Cap: $2.18 billion (on 29 August, 2024)
Token Allocation:
Sui Foundation: 50% of the total token supply
Mysten Labs Treasury: 10% of the total token supply
Early Contributors: 20% of the total token supply
Funding Sales: 14% of the total token supply
Community Access Program: 6% of the total token supply
How to Trade SUI on Flipster?
Sign up for an account on the Flipster website or by downloading the Flipster app (Android or Apple).
Click the [Trade] tab.
Search for SUI and click on it.
Select the leverage (up to 100x).
Select either a Trigger Order or Market Order.
Input the amount of crypto you wish to trade, or select a percentage of your available funds to use.
Once you have confirmed the details, click the [Long] or [Short] button to open a position.
Disclaimer: This material is for information purposes only and does not constitute financial advice. Flipster makes no recommendations or guarantees in respect of any digital asset, product, or service. Trading digital assets and digital asset derivatives comes with significant risk of loss due to its high price volatility, and is not suitable for all investors.