Preface
Since APT brought a lot of attention to Layer 1 last year, everyone's attention has begun to focus on these blockchain systems that are run by the original team of Meta. SUI is one of them that has attracted much attention. There are many reasons for this. Investors who missed the APT airdrop are looking for the next public chain that can bring profits. SUI has performed very well in terms of team background, ecosystem, and UI/UX. Next, we will follow every detail you need to know. Let’s analyze whether it is a good move for SUI to issue coins online on the mainnet at this point in time? And as a value investment, when can I hold SUI?
About SUI
SUI
Let’s talk about the conclusion first. Because the introduction of technology is all trivial and not what most investors care about, I will first put some of my personal observations on the birth of SUI.
The purpose is to create a public chain that integrates the Web3 ecosystem and has the highest scalability while reducing maintenance and operating costs.
This is my conclusion about SUI. This is not a simple statement, nor is it easy to do. I believe that SUI can be achieved based on the consensus structure it presents and the past partial failure experience of public chains. do better.
I wonder what most people think about maintenance and operating costs?
To put it simply, it is just an interactive action on a smart contract. If there is data storage in this line of code on the receiver, the transaction may fail. Therefore, when setting up a contract on a chain, you need to take into account the data on the chain. The cost of storage, so most contracts tend to graft the option of storing data to node operation to spread the cost and let users bear it. Of course, this is a bit too subtle, and not every program is Run like this.
The main thing to consider is that the cost of decentralization, that is, distributed ledgers, is quite high.
This is also the main problem that public chains now have to overcome, to reduce costs so that the costs can be painlessly transferred for subsequent public use.
Mysten Lab
The Sui development team is Mysten Labs, established by the Novi research team under Meta (also committed to developing the Diem blockchain).
Like Aptos, Sui has no substantial ties to Meta, although it is also composed of former Novi-Meta personnel.
First level, POS
Games, social networking, business → Web3 integrated public chain
Dynamic NFT operation
team member
Evan Cheng, CEO: Former Novi R&D Director and Meta Engineering Director (Programming, Language Runtime)
Sam Blackshear, CTO: Former Novi chief engineer; focused on the Move programming language
Adeniyi Abiodun, CPO: Former product leader of Meta Novi; worked at VMware, Oracle, PeerNova, HSBC, JPMorgan Chase
George Danezis, Chief Scientist: Formerly a research scientist at Meta Novi; previously worked at Chainspace, Microsoft
Kostas (Konstantinos) Chalkias: Former Novi Chief Cryptozoologist
Financing status
Series A
Date: 2021/12
Funding: $36 million
Type: shares
投资方：a16z、NFX、Scribble Ventures、Redpoint、Lightspeed、Electric Capital、Samsung NEXT、Slow Ventures、Standard Crypto、Coinbase Ventures
Series B
Date: 2022/07
Funding: $300 million
Type: shares
Investors: a16z, FTX Ventures, Jump Capital, Binance Labs, Coinbase Ventures
TokenomicsTokenomics
SUI Token Distribution
SUI Token Allocation https://blog.sui.io/sui-token-allocation/
Total quantity: 10 billion pieces
application:
Node pledge
transaction fee
Governance voting
Native asset trading.
distribute:
20%: early contributors
14%: Investors
10%: Mysten Labs Treasury
6%: Community Access Program and Application Testers
50%: Community Reserve (managed by SUI Foundation)
Delegation projects:
Grant Program
research and development
Validator Subsidy
Token Economic Analysis
At present, there is not much reference data on the issuance rate and issuance volume. Currently, the options for issuing coins are as follows. Of course, if there is TokenUnlock information in the future, or the unlocking cycle of the own tokens allocated to Contributors or Community Reserve The information will be more accurate.
The current Initial Supply offer of 6% of Total is not too much.
If we look at the general rule that 80 – 90% of the total amount of coins will be issued in 10 years, approximately 100 million SUI will be issued in a month.
In addition, there is currently no deflation mechanism, so it is impossible to determine where the hard cap of Total is.
Judging from the normal coin issuance in half a year, I estimate that the Price will not exceed 10U, which means that the Public Price will not be a hundred times the coin. However, if we look at 10U, the market value will exceed Matic by then.
Why do we say half a year? The main reason is that the end of 23/Q4 may be a bear market reversal, so it still takes time to judge.
Matic is also the main benchmark in terms of circulation and price, although the two technologies are different.
The time of currency issuance, the timing of Bitcoin ATR and the halving cycle. Personally, I think it is possible to enter the market for short-term investment, but in the long term, you will need to wait for the market reaction:
If you enter the market in the short term, you can exit to make a profit when there is a high point.
For long-term holding, you should wait for the market's attitude towards SUI, decide whether to continue holding it at a low cost, and look for ecological opportunities to utilize the token.
The reasonable price should be at $1. You can do early observation. The fluctuation may be $4 and slowly decline. Personal investment will tend to spread the market to spread the cost and try to keep the cost as close to $1 as possible and close to the controllable cost.
Compare with APTOS
focus
In addition to the team members coming from Meta, Sui and Aptos have some superficial and fundamental similarities, which are summarized as follows:
Both aim to solve the "impossible triangle problem" of blockchain
Both use Move as their native programming language (Sui's Object model is slightly different from Aptos)
SUI – Object Model: Using a blockchain operation method that conducts transactions and interactions in the form of target assets instead of address changes can reduce the burden cost of the blockchain, which will be introduced below.
Transaction parallelization (enabling low latency and high throughput) rather than ordered block execution:
Optimize data availability
SDK and API for improving DX/UX (increasing developer experience)
Received investment from top institutions
Valuations are roughly the same
Difference – SUI
Gas mechanism
At the beginning of each epoch, validators vote on a network-wide gas price, which is used as a reference for users to anchor when submitting transactions for processing.
The system will provide incentives for validators to keep Gas close to the reference price for each epoch; and those who submit high bids will be punished with discounted rewards.
→ The advantage is that almost all transactions submitted by users tend to be valid transactions, and those who try to increase Gas Fee will not have an excessive MEV situation due to Gas Fee. At the same time, on-chain activities will not cause Gas Fee to be too high. situation occurs.
Regarding transaction execution fees and data storage fees: Originally, when executing on any blockchain, the Gas Fee we paid included the storage fee for data on contract interaction; while SUI separates the fee types and pays Gas and storage fees (partial storage fees). into the storage fund for future development); this design also incorporates the benefits of SUI in data consensus, reducing data maintenance costs.
Distinguish transaction execution by transaction type
Simple transactions: Allow some simple transactions (asset transfers) to be executed immediately. Usually the data is independent and does not involve too many other addresses or accounts, achieving point-to-point immediate implementation.
Complex transactions: Use DAG consensus to make transactions execute in an orderly manner.
Adopt Object Model
This has a considerable degree to do with the execution of transactions. It has changed the original way of recording transactions. SUI has chosen a target-oriented transaction model, which includes NFT, Token, contracts, etc.; compared with other public chains, address-to-address as the core.
You can understand the actual difference with this example:
When a transaction occurs on SUI, the transaction content is that address A sends an NFT to B, then the content that needs to be updated in SUI's ledger model is: "All addresses of this NFT (Object) have changed from A to B; And if such a transaction occurs in an address-centric blockchain, both the content of address A and the content of address B will need to be modified once to allow the NFT to be transferred from address A to address B."
Comparing the two, it is found that this only changes the recording method of Object properties and reduces the recording cost.
About Narwhal (memory pool) & Tusk and BFT
Related references
https://arxiv.org/pdf/2105.11827.pdf
https://developers.diem.com/papers/diem-consensus-state-machine-replication-in-the-diem-blockchain/2021-08-17.pdf
https://www.blocktempo.com/why-is-move-purpass-than-solidity/
The SUI implementation of consensus is designed to separate the protocol's memory pool from the consensus layer, whereas most PoS Layer 1 have monolithic consensus protocols.
Imagine that the memory pool is the "unfinished transaction record waiting queue" and the consensus layer area is the "recorder".
So when the memory and consensus were originally tied together, these recorders had to record all unfinished transactions at the same time, resulting in greater performance requirements (which will be mentioned later), and the separate processing method will make the simple transactions mentioned above easier. Execution, complex transactions require additional processing by consensus members.
The memory pool is equivalent to a transaction transfer station. All transactions need to be verified, packaged and sorted in the memory pool before being sent to the network through miners.
Based on DAG (Directed Acyclic Graph) or object-centric data model, some people may think that Sui is a distributed ledger rather than a blockchain.
Because under this design, transactions are not packaged into a blockchain sequentially, but instead have many of its elements linked together as a network graph rather than a chain.
As you can imagine, the DAG model can enhance scalability by splitting objects and taking advantage of their built-in properties (mentioned above about the Object property).
For more complex transactions involving "Shared Objects", such as interactions with smart contracts that can be modified by multiple owners, SUI will use the more traditional BFT consensus described above.
One of the main differences between SUI and other Layer 1 is that SUI is optional for consensus protocols.
SUI only runs consensus when needed to periodically check its status.
This consensus architecture greatly improves performance because it enables the SUI to perform many transactions simultaneously. Therefore, latency is also reduced while allowing validators to use all of their CPU cores. According to the team, the architecture will make it “the first and only permissionless blockchain with horizontal scalability and no cap on the entire network.”
Hardware requirements
The ease of decentralization can be further compared by running a full node.
The following summarizes the situation of SUI, Aptos and other L1:
Conclusion
Personally, I still like SUI very much in terms of technical presentation. It has a strong and positive purpose. The indispensable point is its role in reducing the overall blockchain cost, including: "Transaction attribute classification, DAG and memory "The application, Object Model, and Gas Fee are approaching fairness." These points may be the most touching to the general public in the future. When you just need to transfer assets today, it can be processed at a second-level transaction speed. It's very exciting, and the gas fee won't be treated any differently because you give it too high or too low.
If you are interested, you can check out SUI's Ecosystem. Especially after downloading SUI Wallet, you can better understand what I am talking about. SUI has great ambitions. In terms of UI/UX, maybe it reflects their determination to "use it by one billion users" .
Apart from these good things, there are of course some concerns. As an investment point, the information of SUI is still quite complicated, and it also requires a lot of time to do the so-called knowledge judgment. Among them, the issue of tokens may require a lot of ink. a little.
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