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It seems that the cryptocurrency world has found its new darling. While in recent years people were mostly talking about whole sub sectors such as DeFi, Metaverse or AI tokens, in the recent past, the cryptocurrency community has been looking at one project in particular.
Sui (SUI) is becoming a new hot topic in crypto circles. With an amazing team and backing, groundbreaking technology, innovations and a valuation of $2 billion, Sui looks like it is the next big thing.
Sui (SUI) is a layer-1 blockchain that is aiming to solve problems connected to Web3. It is mostly focused on reducing the latency in the execution of smart contracts as well as revolutionising blockchain technology. This should be done through increasing speed and security, which should help with a greater adoption of Web3.
Sui is built around horizontal scalability without any upper bound. This simply means that it can meet the demand of the applications built on it without increasing the costs of transactions. Through this, Sui eliminates any bottlenecks that can come up from increasing demand for transactions.
Traditional blockchains usually see sequential blocks. This means that it can create wasteful computational power. However, in the case of Sui, thanks to the implementation of organising the data into independent objects, the parallel execution of transactions can happen, leading to faster and cheaper transactions.
Byzantine consistent broadcast, which is another implementation in Sui, ensures that the overhead caused by global consensus is eliminated without sacrificing safety or liveliness guarantees. All of these ensure that the transaction costs and time will be low even with rising demand for transactions.
The whole network of Sui is built with three different types of participants in mind. These are users, token holders and validators, each of which serves a different purpose.
Sui uses 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 whom they store their staked tokens. Validators are then in charge of transaction selection and approval. During the epoch, the tokens are locked into the system, but the token holders can pull out their tokens once the epoch ends.
The whole project is built around three key concepts. Together, these ensure that the settlement process of transactions is instant and the costs of transactions are low. These three core pillars are Move language, parallel transaction execution and Sui Consensus Engine.
Sui’s network is based on a support of smart contract executions, where Sui’s Move language is playing the key role. Sui Move language, which is an updated version of Move language, is a programming language that is based on Rust – popular programming language. Move language was originally created for Facebook’s Diem and Novi project and is now used for instance by Aptos, one of Sui’s main competitors. It was created by the same team that works on Sui.
Sui Move language allows for creation of custom smart contracts. These can be then tailored to specific use cases, helping to improve different processes within development and implementation of projects and apps built on top of Sui. It can also help with reduction of costs associated with traditional intermediaries. Through this, Sui has the potential to attract more developers and users to their own platform and grow its own ecosystem incredibly fast compared to other projects.
Moreover, Sui’s Move language is designed in such a way as to prevent double-spending. Through this, it can help Sui build one of the most secure smart contract platforms. This programming language was designed in such a way as to prevent and improve some of the flaws of existing cryptocurrency programming languages.
The second critical pillar in the Sui’s development is the parallel transaction execution. It is also one of the biggest innovations that Sui brought to the market. Unlike on other smart contract platforms, where the transactions are executed one after another, with Sui, the transactions are verified, approved and processed in parallel, with simple transactions not requiring any consensus.
This leads to an almost instant finality, which can be best understood when compared to other blockchains. For instance, Ethereum was at its peak able to handle approximately 15 transactions per second (TPS), with Bitcoin on-chain transactions generally being able to process 7 TPS. With Sui, this number has a potential to go as high as 120,000 transactions in a second based on trial runs and tests.
The third pillar of the whole network is its consensus engine. During its launch, Tusk and Narwhal were the default consensus algorithms. However, that changed in August 2022, once Tusk was replaced by Bullshark. The main reason for this step was the aim of reducing the latency issues.
As of now, Narwhal is used as a mempool and Bullshark sets the standard for arranging data. This helps the Sui Consensus Engine to read the data properly and without any frictions. It is also a part of the whole Directed Acyclic Graph (DAG) mempool.
When it comes to the ecosystem, Sui has one of the most robust and developed ecosystems out there. It starts from their own projects and initiatives such as Sui Wallet or Sui Explorer, but it also includes hundreds of different solutions.
Suiscan, Sui’s native explorer, was launched in August 2022. Just like with Bitcoin or Ethereum, which both have their own scanning and transaction tools, Suiscan serves as a trusted transparency tool. It has several different functions such as maintaining the most updated and accurate on-chain data, acting as a fast and reliable tool for debugging and auditing or providing a useful smart contract development.
Sui Wallet is one of the key features that the team from Sui has brought to its users. It is an open-source Chrome extension with a user-friendly interface. It allows for storage and management of all the assets based on Sui to be in one place. It can also interact with different dApps as it supports all the possible integrations from the Sui ecosystem. Sui Wallet also allows for storage of NFTs or track transactions.
The storage fund of Sui is a key part of the sustainability of the project. It is designed to redistribute gas fees to validators in the future. The fund is designed to ensure that the outflows from it will always be smaller than the inflows to it. Interestingly, there can be two different types of inflows. The first one is the storage fees for transactions conducted in the current epoch (24 hours). The second is the reinvestments of the staked rewards which are not paid out to validators.
Through this process, as well as through ensuring that the fund never touches its principal, the Sui team tried to make sure that the ecosystem will be self-sustaining in the future and will be able to last forever.
But that is not all. The whole ecosystem that is built around Sui is impressively vast. While these were the projects that are directly connected to Sui, this blockchain has already seen countless others that are built on it.
It includes projects from different fields such as security, privacy, gaming, NFTs, DeFi, AMM, custody, governance, lending and many more. The below list contains just 10 different projects from various fields to show the plethora of possibilities that Sui’s ecosystem offers.
Sui Global: a simple guide to the whole Sui ecosystem. Its main goal is to raise awareness about the developments of the whole Sui blockchain and ecosystem. Sui Global is trying to also engage the community with the development of Sui, projects based on the network or in the ecosystem as well as their future prospects.
OtterSec: is a blockchain security firm that is focusing on identifying and patching any possible bugs and exploits before they are released to the market. OtterSec is working closely with developers and teams behind projects on the Sui ecosystem, to help them avoid any security trouble in the future.
Ethos: is a project building a virtual wallet infrastructure with the goal of making the wallets a home base for Web3 users. It consists of several crucial parts such as EthosConnect or Ethos Wallet.
Suifly: a privacy web protocol that is providing unparalleled security and privacy to its users. It does so through the decentralized VPN networks (dVPN), as it is based on a blockchain-powered decentralized AI privacy network that is built on Web3.
Umi Protocol: is the first DEX aggregator built on Sui. It is providing the traders with the options of optimal swap routes at the best exchange rates through the implementation of the graph search algorithm and combination of multiple AMMS, order books and liquidity protocols.
Taurus: is a project that aims to build the freedom of fully dynamic NFT collections. They are planning to allow everybody to be a collector as well as the creator of NFTs as they believe that NFTs should empower the individuals to take control of their digital identities.
BlueMove: a super app based on Sui that offers an NFT launchpad, marketplace and DEX all in one place in a seamless web and mobile experience. It is considered to be an ideal choice for both the traders and developers, a combination that is rarely seen these days.
Sui of Hanako: is the original NFT artwork and collection based on Japanese culture with a slight twist, which includes the blend of current trends. The goal of it is to preserve the history of Japanese culture, but they also offer various utilities such as charity, exclusive airdrops, analytic tools or revenue sharing royalties.
MoveFlow: is a crypto asset streaming protocol that is built on Sui’s Move ecosystem. It enables instantaneous, seamless and uninterrupted payment streams. The whole protocol allows for automated payment streams according to the predefined rules of the users all within one single transaction.
Arcade Champion: is the first mobile, hybrid casual game that evolves around play-to-own elements and Hero-based NFTs. Arcade Champion aims to reinvent the classical arcade games thanks to the integration of NFTs and play-to-own elements.
These are just some examples of the countless projects built on Sui that are already working within its ecosystem. Amongst others, there are also projects such as RyuFinance, Patronus, Stakin, Fenture Finance or Mobius, which should definitely be on the radar of anyone who is interested in the future and development of Sui.
The team behind Sui and its creation has one of the most renowned names in the cryptocurrency space. While the numbers of the team are not somehow vast, currently at around 13 members, the 5 co-founders have incredible experience from the past. Evan Cheng, Sam Blackshear, Adeniyi Abiodun, George Danezis and Kostas Chalkias were all former executives and leads in the Meta’s Novi project. Novi has been developed as one of the leading digital wallets, however, it was unsuccessful, which led to these 5 team members co-founding a new project called Sui.
Prior to Sui, they were responsible for creating and delivering some of the most advanced open-source components such as execution engine, programming language or cryptography of Diem (Novi) network.
Besides the renowned and extremely skilled founders and team, Sui has an impressive line-up of investors and supporters. It has already raised almost $350 million in two funding rounds. The Series A funding round was led by Andreessen Horowitz with other participants such as Slow Ventures, Standard Crypto, Electric Capital or Samsung Next and ended with Mysten Labs, company behind Sui, raising $36 million at the end of 2021.
The second funding round was even more successful as it led to a financial injection of around $300 million with the Sui’s valuation being $2 billion. This round was led at that time by FTX Ventures, with Jump Crypto, Circle Ventures, Franklin Templeton and O’Leary Ventures joining as investors.
The Sui blockchain has its own native token, SUI, which has several use cases and benefits. SUI token can be easily stored within the Sui Wallet for easy security. Here are four of its current main purposes:
The total supply of SUI was pre-specified to be 10 billion SUI tokens, with currently about 3 billion tokens being in circulating supply. Upon the launch, 50% of the tokens were put into Community Reserve to fund validator subsidies, research and development, 20% was given to the early contributors, 14% to the investors, 10% to the treasury of Mysten Labs and remaining 6% went to Community Access Program (CAP).
Sui is one of the hottest cryptocurrency tokens in the market. It is gaining ever more traction and attention of all the crypto community. And no wonder. This innovative and very technologically advanced project has brought a lot of changes and improvements. It also solves several problems that are common within smart contract platforms.
On top of that, Sui has an incredible team with remarkable past and expertise. With a huge backing of investors and VCs and a very respectable valuation of $2 billion, Sui definitely has what it needs to become a successful and very important cryptocurrency project.
Unless something goes horribly wrong within the development or implementation of the project, Sui is simply poised to become the next big cryptocurrency. It is expected that this project will rise to the TOP 50 if not TOP 10 without any problems in the near future as optimism around Sui increases.
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