What is the Sui Network (SUI)?

What is the IUE?

sui (pronounced “Swee”) is a decentralized Layer 1 proof of stake blockchain, meaning it serves as the fundamental infrastructure for verifying and processing transactions, similar to bitcoin and ethereum. Layer 1 block chains They are the backbone that supports a specific token or a network of different tokens.

Sui was developed by Mysten Laboratories, a group of former Meta employees. It is designed to limit the time it takes to run smart contracts and scalability support for decentralized applications (dApps). The network believes it has cracked the code of smart contract execution in terms of speed, high security, and low gas fees. This is possible thanks to the programming language with which it was designed called “Move”. Move is a Rust-based programming language that prioritizes the execution of fast and secure transactions.

According to the White paper, the network is named after the element of water in Japanese philosophy, a reference to its fluidity and flexibility that developers can use to shape Web3 development. The network focuses on low latency and high scalability. This has caused his supporters to call him “the Solana Killer.”

The Sui project was announced by Mysten Labs in September 2021, and in December 2021, Mysten Labs invested $36 million in the project. This was followed by a $300 million Series B announcement led by a $140 million commitment from FTX in 2022, valuing the startup at $2 billion.

Reasons why the Sui network was created

In the words of Sui co-founder and CEO Evan Cheng, the current Web3 infrastructure is slow, expensive, and notoriously unreliable. With this in mind, Cheng said the network was created to change the Web3 game with some 5G-level upgrades that would allow developers to create blockchain-powered applications with scalability that can only be associated with centralized technology hubs that dominated Web 2.0.

In other words, the Sui network was created to solve Web3 problems by simplifying and improving the creation of various applications and functions in the Web3 ecosystem, solving the most common problems in the Web3 industry: speed, security and stability.

How does the blockchain work?

Sui operates as a Layer 1 blockchain focused on optimizing fast blockchain transfers. It places a high level of importance on immediate completion of transactions, making Sui an ideal platform for on-chain applications such as decentralized finance (DeFi), gaming, and other real-time use cases.

Unlike existing Layer 1 blockchains, where transactions are added one after another, making it slow as more transactions are added to the blockchain, Sui does not make each transaction go through every computer. of the network. Instead, it selects the relevant part of the data that needs to be verified, which eliminates the congestion problem on the blockchain and drastically reduces gas fees for carrying out transactions.

The Sui network uses a without permission set of validators to reduce latency and a protocol called Delegated proof-of-stake system. It has epochs (each consisting of 24 hours), during which Sui holders select a set of validators with which they store their staked tokens. Validators are then responsible for selecting and approving transactions.

Who are the brains behind the Sui network?

Co-founder and CEO Evan Cheng: Cheng previously worked at Apple for 10 years and was also Head of Research and Development at Novi and CTO at Meta.

Chief Scientist George Danezis: Former researcher at Novi, Meta, and previously worked at Chainspace, Microsoft.

Adeniyi Abiodun, CPO: Former head of product development in Novi, Meta. He previously worked at VMware, Oracle, PeerNova, HSBC and JP Morgan.

Kostas Chalkias: Former leading cryptographer in Novi. He previously worked at R3, Erybo, Safemarket and NewCrypt.

Sam Blackshear, Chief technology Officer: Former chief engineer at Novi, specialized in the Move programming language.

Investors and institutions that support the network

Sui was valued at $2 billion later FTX Companies committed $140 million to the project. However, Sui also has other credible investors who have also committed, such as Binance Labsthe largest centralized crypto exchange by daily trading volume, and Coinbase Companiesthe largest crypto exchange in the United States.

Other investors included Franklin Templetonglobal leader in asset management with more than seven decades of experience, and Skip crypto, an experienced team of builders, developers and tradesmen. ApolloLightspeed Venture, Circle Ventures, Partners, Sino Global, Dentsu Ventures, Greenoaks Capital and O'Leary Ventures He also invested in blockchain.

Uses of the Sui coin

The SUI coin plays a crucial role within the ecosystem and fulfills several functions:

• Governance: Sui coin holders can participate in governance decision-making, including parameter adjustments, protocol upgrades, and other key changes to the network. This means that SUI holders have a say in the direction and development of the Sui Network.
• Transaction fees: The SUI coin is used to pay transaction fees within the network. The coin acts as a medium of exchange to cover all associated fees, whether you interact with smart contracts, transfer assets, or participate in any on-chain Sui activity.
• Utility: The native currency will be used in various decentralized applications (dApps), gaming applications and other projects created on the network. It will be used to purchase in-game accessories and NFTs.
• Staking: Staking the SUI coin helps network security and consensus. SUI coin holders who stake their coins are being rewarded and given incentives for their participation and commitment.
• Investment: Investors can buy, hold or trade SUI coins as investments on centralized exchanges, just like bitcoin, ethereum, Solana, Cardano, BNB and all other blockchains with good use cases.

Sui Network plans to improve the Web3 ecosystem

Transaction speeds

Sui Network aims to solve the problems of slow transactions in Web3. The network was built on a Rust-based programming language called Move, which prioritizes executing fast and secure transactions. Transactions on the Sui network are validated in 24-hour epochs, each epoch can be validated independently rather than in blocks as is done in traditional blockchains.

Parallel transaction execution increases the Sui network's transaction speed to 297,000 transactions per second and 400 milliseconds of completion compared to ethereum's 20 transactions per second and 6 minutes of completion or 10,000 transactions per second and 2.5 Solana's completion seconds.

Focus on Web3 and asset ownership

The Sui Network is focused on improving Web3 and the Web3 experience by addressing the needs of millions of users, including speed and security. Sui allows users to create, update and deploy decentralized applications and non-fungible tokens (NFTs)

Scalability

Sui Network aims to make Web3 more scalable through parallel processing or execution. This means that the Sui network identifies independent transactions and processes them simultaneously. The implication is that transaction times are reduced and accommodate larger transactions charged at a time. This is made possible by the Sui implementation of the Move programming language and the Narwhal-Bullshark-Tusk consensus algorithm, which focuses on the details of a transaction rather than the entire transaction chain.

The Tokenomics of the SUI Coin

The native Sui token is called SUI and has several use cases. According to Coingecko, SUI's maximum and total supply is capped at 10 billion coins with a current circulating supply of 1.2 billion, ranking 48th by market capitalization value.

A portion of SUI's total supply became liquid upon its mainnet launch on May 3, 2023. Sui's all-time high was on the day of its launch at $2.16. However, it is currently trading at $1.51, which is a 320% increase from its all-time low of $0.364 last year on October 19.

The symbolic economy included 6% destined for its Community Access Program and App Testers10% of the supply went to Mysten Laboratories Treasury14% went to their Investorsand 20% went to First contributors. The vast majority of the supply, 50%, remains in its Community reserve. The purpose and distribution of Community reserve Include a Delegation program, Grant programs, Investigation and developmentand Subsidies for validatorsas shown in the following illustration:

Only about 5% of SUI coins were already in use when the Sui Mainnet was launched, while the rest will be released gradually according to the planned schedule, as shown below:

Conclusion

Sui Network aims to improve Web3 by giving every Web3 user a much better Web3 experience without the problems of slow transaction speeds. The network uses parallel execution of transactions to ensure ultra-fast speed, high security, and low gas fees.