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 Sui consensus engine, parallel transaction execution and Sui’s 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. SUI 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?
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 Sui 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 Sui 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.
Sui Move
Sui 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 Sui 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 Sui 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.
Sui 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 Sui blockchain’s native token, SUI, 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 SUI 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).
Token distribution
There is a total supply 10 billion SUI 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 Sui app testers, and 50% to a community reserve managed by the Sui Foundation. The community reserve will be used for delegation programs, grant programs, research and development, and validator subsidies.
How to buy SUI
You can buy the Sui coin on Bitstamp. Sign up for a Bitstamp account and start trading SUI today!
Disclosure: SUI is not available in the US.