What is Sui? SUI Review & Beginner’s Guide

Today we’re going to explore the Sui blockchain and answer your questions, including What is Sui, and how does it work? This beginner’s guide will take you through all you need to know about the Sui blockchain and how its tech innovations with transactions per second (TPS) could change the landscape of the crypto landscape.

Sui Review: Summary

Price Trading volume in 24h Last 7d price movement Buy Now! is a high-performance Layer 1 blockchain developed by Mysten Labs, designed to offer exceptional throughput and low latency. Built with a unique object-centric data model and powered by the Narwhal and Bullshark consensus mechanism, Sui enables parallel transaction execution, setting it apart from other blockchains like Bitcoin, Ethereum, and Solana.

This guide covers Sui’s architecture, tokenomics, use cases, transaction speeds, and how it compares to other networks. Additionally, we’ll explore Sui’s ecosystem, community growth, major projects, and how to purchase the SUI token. Finally, we’ll review its pros and cons, staking capabilities, and what makes Sui stand out from the crowd.

What is Sui?

Sui is a Layer-1 blockchain designed for high-speed, low-latency transactions, making it ideal for real-time applications like gaming, decentralized finance (DeFi), and social media. Developed by Mysten Labs, Sui uses a unique approach called “transaction parallelization,” allowing multiple transactions to be processed simultaneously, which significantly enhances scalability. Unlike traditional blockchains like Bitcoin and Ethereum that handle transactions one by one, Sui’s parallel processing boosts efficiency, similar to how a multi-lane highway allows more cars to pass at once.

Sui is built using the Move programming language. Originally developed by Meta, Move enables fast, secure transaction executions, making it well-suited for building decentralized applications. Sui’s consensus mechanism, Narwhal and Bullshark, helps organize and validate transactions quickly, enabling it to achieve a transaction throughput of 120k TPS. Its native token, SUI, powers the ecosystem by handling transaction fees, staking, and governance.

With a focus on security, scalability, and instant transaction finality, Sui is positioned to support a wide range of use cases, offering users fast, private, and secure digital asset ownership in a decentralized ecosystem.

How Does Sui Work?

Instead of requiring validators to sequentially validate every transaction (like its blockchain counterparts), Sui uses parallel transaction execution, allowing the network to handle multiple transactions simultaneously to significantly enhance scalability and speed.

At the core of Sui’s design is an “object-centric” data model, where data storage is organized around individual objects rather than accounts. This allows unrelated transactions to be processed independently, removing the need for universal validator approval for every transaction. As a result, Sui avoids bottlenecks and achieves far greater transaction throughput.

The transaction process on Sui follows these steps:

1. The sender broadcasts a transaction to the validators.
2. Validators verify the transaction based on their stake and provide weighted votes.
3. When a majority is reached, the sender gathers the votes into a certificate, which is then confirmed by the validators.

Additionally, Sui’s system supports three types of asset ownership: assets owned by an address (such as coins or NFTs), assets owned by another object (e.g., an NFT within another NFT), and shared assets (e.g., liquidity pools). Transactions involving owned assets can be executed almost instantly, making Sui ideal for fast-paced applications such as NFTs, gaming, and decentralized social networks.

The native SUI token plays a vital role within the ecosystem. It pays transaction fees, supports network security through staking, and grants holders governance rights. With a maximum supply of 10 billion tokens, only a portion of SUI is currently in circulation, with the rest being gradually released to sustain network growth.

By combining parallel transaction execution, a unique data storage model, and a powerful consensus mechanism, Sui delivers low-cost, high-speed blockchain performance tailored for modern decentralized applications.

Who Created Sui?

Sui Network was developed by Mysten Labs, a team of former Meta engineers, including Evan Cheng, Adeniyi Abiodun, Sam Blackshear, George Danezis, and Kostas Chalkias. Mysten Labs was founded in 2021 to continue the research and development started during the Diem project at Meta. Diem, initially called Libra, was Meta’s attempt at creating a blockchain and digital wallet for a global payment system, but the project was ultimately shut down due to regulatory challenges. From this effort, two distinct blockchains emerged—Aptos and Sui.

Mysten Labs built the Sui blockchain to address the limitations of existing blockchains, focusing on scalability and low-cost transactions through horizontal scaling. The Sui team brings significant expertise in blockchain technology, having previously worked on Diem and the Move programming language. Evan Cheng, the CEO of Mysten Labs, was previously the Director of Engineering at Meta and has over a decade of experience at Apple. Sam Blackshear, the CTO, was instrumental in creating the Move programming language, while Adeniyi Abiodun, the CPO, led product development for crypto infrastructure products at Meta.

Major venture capital firms, including Andreessen Horowitz (a16z) and FTX Ventures, have supported Sui’s development, collectively investing $300 million in the project. The Sui Foundation, an independent organization associated with the network, has partnered with prominent crypto exchanges like KuCoin, OKX, and Bybit to promote token sales and onboard new users to Web3 through the Sui ecosystem.

Sui’s mainnet launched on May 3, 2023, following its testnet debut in August 2022. Key developments since the launch include the release of DeepBook, a central limit order book (CLOB) for the Sui ecosystem, and the introduction of liquid staking through SIP-6. The network continues to evolve, with ongoing upgrades, including Protocol Version 35 in February 2024.

Sui Tokenomics

The total supply of SUI tokens is capped at 10 billion. When Sui Mainnet launched, a portion of these tokens was made available, with the rest gradually released over time.

• Inflation/Deflation Mechanism: SUI tokens aren’t burnt, but with a fixed supply, the project doesn’t suffer from inflationary pressure – as seen in the case of some meme coins such as Dogecoin.
• Gas Fee Structure: Gas fees are determined by validators at the start of each epoch and adjusted based on network activity. A reference price mechanism ensures stability, with storage fees used to fund future validators through the Sui Storage Fund.
• Delegated Proof-of-Stake (DPoS): Sui’s DPoS mechanism allows SUI holders to delegate tokens to validators. Validators’ voting power correlates with the amount staked, and rewards are distributed after each epoch, sourced from gas fees.

During an AMA with Alonso from Mysten Labs, Alonso was asked “What’s special about Sui Tokenomics” We found his response summed it up well:

From an engineering perspective, everything that lives on the blockchain is designed as an object. When transactions on Sui are running with objects that are independent of each other, they can be executed in parallel.

Sui has the ability to handle arbitrary amounts of on chain data. We’ve designed Sui to make sure that anyone can use on chain storage. And if you’re going to use that storage, then you should pay for it.

This is different from what happens in more traditional blockchains, where every single transaction needs to be ordered relative to each other, […] if demand for network activity increases at any given point in time, the chain can essentially scale horizontally. Each validator can add more computing power to make sure that they can execute these transactions in parallel, providing: high TPS, low latency, and good user experiences. – Source: Mysten Labs AMA 

What are SUI’s Use Cases?

Sui is capable of supporting various use cases, particularly in gaming, decentralized finance (DeFi), social networking, and NFTs. Its object-based blockchain structure enables secure digital asset ownership, rapid peer-to-peer payments, and a foundation for more accessible financial services. Even before its official launch, several applications were already leveraging Sui’s potential.

Sui Gaming

Gaming plays a pivotal role in bringing more users into the Web3 space, and Sui’s architecture is particularly appealing to game developers. The network’s object-centric design allows for seamless integration of in-game assets, enhancing user experiences. Sui currently hosts nine gaming projects, including Abyss World, a high-fantasy adventure game, and Run Legends, where users’ physical movements double as in-game actions. Other notable titles include Cosmocadia and Panzerdogs. With Web3 entertainment company Orange Comet recently partnering with Sui, the blockchain is quickly becoming a hub for immersive gaming.

Sui DeFi

Sui’s architecture also opens new opportunities for DeFi applications. The Sui Move language includes built-in security features, providing a secure foundation for DeFi protocols like Turbos Finance, OmniBTC, and Cetus. However, while its security is a strong point, the blockchain currently faces throughput limitations, processing only around four transactions per second. As it scales, Sui has the potential to handle more complex financial applications with greater efficiency.

Decentralized Social Networks on Sui

Decentralized social networks are another promising use case for Sui. Projects like Polymedia Chat allow users to communicate on-chain without fear of centralized censorship. Another app, Suia, fosters social interactions by creating on-chain “families” of users who hold similar NFTs, with over 300,000 communities already established. These applications show how Sui can support decentralized, community-focused platforms.

Sui NFTs

NFTs are another key pillar of Sui’s ecosystem, and several projects have already been launched. Studio Mirai focuses on fashion and lifestyle, while Abyss World and Run Legends extend their reach into the gaming sector. Sui has even hosted events where NFTs were exchanged for real-world items like coffee, showcasing how its blockchain can connect digital and physical experiences. As more NFT projects develop on Sui, it’s likely the blockchain will see greater adoption in various industries.

Business Use Cases

Sui’s fast and efficient transaction model, built on its Byzantine Consistent Broadcast mechanism, offers a unique advantage for businesses. Companies can leverage the platform for asset tokenization, transforming physical items like property or collectibles into digital assets that can be easily traded. Sui also supports decentralized applications (dApps), allowing real-time trading with enhanced security, making it an ideal platform for DeFi apps. Moreover, e-commerce platforms could adopt blockchain-based loyalty programs, and supply chain management could be improved by tracking each element as it moves through the supply chain using Sui’s object system.

Sui Pros and Cons

How Sui Redefines Blockchain Performance

Sui is reshaping blockchain performance with innovative approaches that significantly improve speed, scalability, and user experience. By focusing on parallel execution, a unique consensus mechanism, and a powerful programming language, Sui pushes the boundaries of what’s possible in the decentralized space.

Parallel Execution for High Throughput

One of Sui’s most notable features is its ability to handle parallel transaction execution. Traditional blockchains, like Ethereum, rely on sequential transaction processing, meaning each transaction is processed one after the other, which limits throughput and scalability. In contrast, Sui processes transactions in parallel, identifying independent transactions and executing them simultaneously. This method significantly reduces latency and improves throughput.

For example, Sui’s parallel processing allows the network to handle over 120,000 transactions per second (TPS), far surpassing Ethereum’s 7-15 TPS. This parallel execution mechanism allows for the simultaneous handling of multiple smart contracts, making Sui a highly scalable solution capable of managing large transaction volumes with low fees.

Unique Consensus Mechanism

Sui also redefines performance through its Narwhal-Tusk consensus algorithm, which separates transaction validation from block creation. This boosts efficiency, allowing faster finalization times, especially for simple transactions like asset transfers or payments.

The use of this consensus algorithm ensures that scalability and security are not compromised as the network grows, making Sui a robust and future-proof platform.

Move Programming Language

Move is designed for security, efficiency, and flexibility, using an object-centric approach that allows developers to interact with digital assets more intuitively than on other chains. This makes it ideal for applications that rely on secure, fast, and scalable smart contracts, such as DeFi protocols and gaming platforms.

With Move’s inherent security features and its adaptability, developers can build secure and scalable applications faster than they would using traditional smart contract languages like Solidity.

Efficient Resource Management

Sui also introduces a new resource management model that optimizes network performance. Rather than processing all transactions through consensus, Sui routes simple, independent transactions, like P2P payments or asset transfers, outside the consensus layer. This innovation frees up more resources for complex transactions, further enhancing the blockchain’s overall speed and efficiency.

Unique Features of the Sui Network

The Sui blockchain has a range of innovative attributes that enhance scalability, adaptability, and user accessibility in the Web3 space. Below are some of its standout features that define its functionality.

Gasless Transactions

Sui aims to make blockchain more user-friendly by introducing gasless transactions. Instead of having users directly manage gas fees, decentralized applications (dApps) settle these fees on their behalf. This eliminates a key complexity for users, enabling smoother interaction with the blockchain.

Flexible Package Upgrades

Upgradeability plays a vital role in smart contract development, and Sui offers a robust solution. Smart contracts on Sui are treated as immutable package objects, which can be upgraded post-deployment. Developers can make modifications, adding or removing features without needing to redeploy contracts, offering flexibility and control over the contract’s lifecycle.

Privacy with Zero-Knowledge Proofs

Sui is forward-thinking when it comes to privacy. By leveraging zero-knowledge proofs (ZK), the platform ensures greater privacy and anonymity for its users. The architecture embeds ZK technology and supports OpenID logins, making Sui a solid option for applications that prioritize privacy.

Tamper-Proof Randomness with League of Entropy

Randomness is essential in certain applications, particularly in sectors like gaming and betting. Sui incorporates the League of Entropy, utilizing the Drand of Beacon randomness generation scheme to deliver tamper-resistant random numbers. This guarantees more secure and trustworthy outcomes in various use cases that rely on random number generation.

Object-Oriented Model for Flexibility

Sui’s architecture centers around dynamic and composable objects. Every object, along with its properties, is stored directly on-chain, providing transparency and security. These objects can own other objects, fostering composability and flexibility in their interactions, which makes Sui adaptable for diverse Web3 applications.

Consistent Gas Fees

In contrast to fluctuating gas fees on many blockchains, Sui adopts a more predictable approach by implementing stable gas fees over 24-hour periods. Users can stake tokens to validators, boosting their voting power while earning a share of the transaction fees, thus ensuring the network remains secure and the fees consistent.

Enhanced Web3 Development Tools

With Sui, developers gain access to an array of Web3 features through the Sui SDK, which simplifies the development of decentralized applications (dApps). The blockchain supports various applications, including decentralized finance (DeFi), games, tokenized assets, and social networks, enhancing the ecosystem’s usability.

Comparing Sui’s Transaction Speeds: BTC, ETH, SOL

Sui stands out in the blockchain landscape with its exceptional throughput and minimal latency, positioning it as a superior alternative to other major networks like Bitcoin, Ethereum, and Solana. While many blockchains struggle with scalability and performance issues, Sui’s architecture, powered by the Narwhal and Bullshark consensus, offers groundbreaking improvements.

Throughput Comparison: Sui vs. Bitcoin, Ethereum, and Solana

• Bitcoin: With a throughput of around 7 transactions per second (TPS) and an average latency exceeding 10 minutes, Bitcoin is significantly slower due to its Proof-of-Work (PoW) consensus.
• Ethereum: Handling about 15 TPS with a latency of 12 seconds, Ethereum has improved slightly with its shift to Proof-of-Stake (PoS) but still lags behind in terms of scalability.
• Solana: Known for its speed, Solana can process around 65,000 TPS with a latency of about 4 seconds. However, its high throughput is often balanced against concerns of network stability.
• Sui: In contrast, Sui delivers an impressive 250,000 TPS with a lightning-fast latency of under 390 microseconds. This incredible speed is made possible through the innovative Narwhal and Bullshark consensus mechanism.

Narwhal and Bullshark Consensus: The Engine Behind Sui’s Speed

Sui employs Narwhal and Bullshark, a dual-layer consensus system that separates transaction processing and consensus. Narwhal handles data availability by ensuring transactions are broadcast across the network, while Bullshark focuses on achieving consensus by processing transactions in parallel. This structure not only maximizes transaction throughput but also drastically reduces latency.

Sui’s Ecosystem and Community Growth

Let’s take a look at what it looks inside the Sui-verse; and how the Sui blockchain is looking to grow.

Key Projects and Partnerships

Agora x NAVI Partnership: Agora has collaborated with NAVI to launch an AUSD liquidity pool, enhancing DeFi liquidity on Sui. This move aims to strengthen the Sui DeFi ecosystem by providing new avenues for stablecoin liquidity.

Circle Brings Native USDC and CCTP to Sui: Circle has integrated its native USDC and Cross-Chain Transfer Protocol (CCTP) with Sui, enhancing cross-chain liquidity and enabling seamless, native stablecoin transactions on the Sui network.

🚨 BREAKING: @Circle’s native $USDC is coming soon to Sui 🎉

Additionally, Cross-Chain Transfer Protocol (#CCTP) will be launching on Sui, enabling developers to be able to build cross-chain flows from other chains (like @Solana, @Ethereum, and more).

💥This is huge for the Sui… https://t.co/klxqurAt3U pic.twitter.com/iamcolqqfK

— Sui (@SuiNetwork) September 17, 2024

Goldsky Partnership: Goldsky officially partnered with Sui to provide data infrastructure and analytics services, helping developers gain better insights and boost decentralized app performance.

DARKTIMES Collaboration: DARKTIMES, a blockchain-based dark fantasy project, has partnered with Sui, leveraging the network’s performance to deliver immersive and scalable gameplay experiences.

Gumi & Sui Foundation: Gumi partnered with the Sui Foundation to develop “Brave Frontier Versus,” a blockchain-based game that will explore new ways of engaging the gaming community through Sui’s infrastructure.

Community Support and Expansion Strategies

Sui’s ecosystem is rapidly expanding, positioning itself as a key player in the decentralized finance (DeFi) space with a surge in total value locked (TVL) by over 1,000% in less than a year. This impressive growth is supported by over 500 active nodes and a high-performance network capable of handling more than 100,000 transactions per second. The platform’s smart contract language, Move, is frequently updated to enhance developer capabilities, while user-friendly features like zkLogin and zkSend simplify blockchain interactions, allowing seamless integration with platforms like Google and Twitter. This robust infrastructure is bolstered by a growing community, strategic developer events, and a focus on innovative technologies like zero-knowledge proofs and sharding for improved scalability and cross-chain interoperability.

Sui has attracted a wide array of decentralized applications (dApps) across sectors such as DeFi, gaming, and NFTs, further boosting its ecosystem. Notable projects include the Cetus Protocol, NAVI Protocol, and Kriya DEX in DeFi, as well as gaming ventures like SUI 8192 and Grand Cross: MetaWorld, all leveraging Sui’s efficient, low-cost transaction network. Additionally, Sui’s cross-chain capabilities, powered by partnerships like the Wormhole bridge, enhance its interoperability, allowing it to seamlessly connect with other blockchain networks. These advancements solidify Sui’s position as a versatile platform for both developers and users.

Sui’s continued ecosystem growth is also driven by key partnerships, such as with Netmarble in the gaming industry, and its developer-friendly tools, like the Sui Wallet, which integrates with NFTs and DeFi. Its focus on community engagement through hackathons and continuous updates ensures that Sui remains an attractive option for new projects. With its commitment to innovation and scalability, Sui is poised for long-term growth, creating new possibilities for decentralized applications and driving widespread blockchain adoption.

How to Buy SUI

To buy Sui (SUI), you’ll need to follow a few simple steps. First, set up a cryptocurrency wallet compatible with Sui. You’ll then need to choose a trusted exchange to purchase your SUI tokens.

Step 1: Create a Sui wallet

To begin, you’ll need a Sui-compatible wallet. This is where you’ll store your $SUI tokens. There are several options to choose from, including the official Sui wallet. Alternatively, check out our guide for wallets to choose from. Once you’ve created your wallet, ensure you have your recovery phrase securely stored for account backup and security purposes.

Step 2: Buy Sui on an exchange

After setting up your wallet, head to a crypto exchange that lists $SUI. Recommended exchanges to buy Sui are MEXC, Binance, Bybit, and OKX.

You can create an account, complete the necessary KYC process, and deposit funds in a supported currency (like USD, EUR, or BTC). Then, purchase $SUI and transfer it to your wallet address.

Is Sui a Buy?

With its launch in 2023, Sui is a much newer crypto project than market mainstays such as Bitcoin and Ethereum. This could mean new investors are early to the coin’s journey if its impressive technical achievements manage to capture the market’s imagination. With lower latency, higher transactions per second, and its use of Meta’s Move programming language can put it ahead of other cryptos on the market, Sui could be onto a winner/

This is especially true when we consider the difficulties blockchains can have when they begin to scale. Anyone making Ethereum transactions back in 2021 will remember the crazy-high gas fees that demonstrated the limitations of a crowded blockchain network. If Sui can overcome these challenges and manage to scale more effectively, it could earn an ETH-killer moniker that makes it a project to keep a close on in the coming years. Sui has also been one of the better-performing projects since its launch, showing that there is a lot of excitement and potential behind this project.

Pro Tip: Check out our guide on Solana, Solana Crypto Review 2024: The Ultimate Guide to SOL! to learn more about another supposed “ETH killer”.

Conclusion

In conclusion, Sui is an innovative and rapidly evolving blockchain platform designed to enhance scalability, efficiency, and user accessibility. With its high-performance network, developer-friendly tools, and focus on decentralized applications (dApps) across sectors like DeFi, gaming, and NFTs, Sui offers a versatile ecosystem for developers and users alike. Its use of cutting-edge technologies, such as the Move smart contract language and zkLogin, ensures a seamless user experience while pushing the boundaries of blockchain scalability and security. Whether you’re a beginner or a seasoned blockchain enthusiast, Sui’s growing ecosystem and future-forward approach make it a compelling platform to explore and engage with.

See also:

12 Cryptos With the Most Potential in 2024

FAQs:

How does Sui differ from other blockchain technologies?

Sui stands out due to its unique architecture that combines high throughput and low latency, enabling the processing of up to 250,000 transactions per second. Its use of the Move programming language allows for greater flexibility and security in smart contracts. Additionally, Sui’s focus on user-friendly features, such as zkLogin and zkSend, enhances accessibility compared to many other blockchains.

Can Sui tokens be staked for rewards?

Yes, Sui tokens can be staked to earn rewards. Staking allows token holders to participate in network security and governance while earning passive income through rewards distributed for their contributions.

Is Sui better than Solana?

Whether Sui is better than Solana depends on specific use cases and user needs. Sui offers higher transaction throughput and unique features like zero-knowledge proofs and user-friendly infrastructure. However, Solana has a more established ecosystem and broader adoption. Ultimately, the choice between the two may come down to project requirements and personal preference.

Is Sui on Binance?

Sui is listed on Binance, allowing users to trade the token on one of the largest cryptocurrency exchanges in the world.

Is Sui on Coinbase?

Yes, you can buy Sui on Coinbase.

What was Sui’s launch price?

Sui’s launch price was around $0.10 when it launched in April 2023.

What chain is Sui on?

Sui operates on its own unique blockchain, designed specifically for high-performance decentralized applications.

Is Sui an ERC-20 coin?

No, Sui is not an ERC-20 coin. It operates on its own blockchain and is not built on the Ethereum network.

Is Sui proof of stake?

Yes, Sui uses a proof-of-stake consensus mechanism, allowing validators to secure the network and earn rewards based on the number of tokens they stake.

References:

“DAG Meets BFT.” Decentralized Thoughts, 28 June 2022, https://decentralizedthoughts.github.io/2022-06-28-DAG-meets-BFT/.

“Sui Profile.” Messari, https://messari.io/project/sui/profile.

“Understanding Sui Tokenomics and Economic Structure.” Martian Wallet, https://martianwallet.xyz/blog/understanding-sui-tokenomics-and-economic-structure/.

“Sui Blockchain.” Hacken, https://hacken.io/discover/sui-blockchain/#h-anchor-3.

“Mysticeti Consensus: Reduce Latency.” Sui Blog, https://blog.sui.io/mysticeti-consensus-reduce-latency/.

“Transaction Throughput.” Celestia, Celestia Labs, https://celestia.org/glossary/transaction-throughput/.

“Zero Knowledge Proofs.” ICMS, International Centre for Mathematical Sciences, https://www.icms.org.uk/ZeroKnowledgeProofs.