During the recent boom of Layer 1 blockchains, 'Sui' was the most searched keyword among the cryptocurrency community. The reason for this is the price increase of the SUI token and the continuously rising TVL of the eponymous ecosystem. So what is special about this project? Let's explore the Sui blockchain and its ecosystem through the article below.
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What is Sui (SUI)?
Sui is a blockchain project developed based on the Move programming language, which was created by the Diem team (the stablecoin that was canceled by Facebook). Sui was created with the goal of addressing the multidimensional scalability issues of traditional blockchains to optimize resource usage and expand operational throughput.
Sui is often compared to Aptos, a blockchain project that made waves in the market thanks to a massive airdrop for the community and also uses the Move programming language. Additionally, during the downtrend in 2022, Sui raised over 336 million USD in investment from major funds.
Operational Structure of Sui
A transaction flow on Sui's blockchain will have 7 steps corresponding to the specialized tasks of its components.
After a user creates a transaction and confirms it with their key, the transaction will be sent to the next component for authenticity verification.
The transactions are then sent to validators (full nodes), where validators will perform a series of checks for validity and safety as well as signatures and return the signed transaction from the validator to the user.
Next, the user will gather feedback from other validator groups (accounting for 2 out of 3 of the staked amount on Sui) to form a valid transaction certificate among three parties: the user, the validating validator, and the other validator group.
After gathering a set of certificates, the user will send it back to all validators for storage and verification.
Validators will check all the certificates and execute their tasks.
After validators check and confirm validity, the user will gather this feedback as proof to resolve the transaction.
7. Then, Sui forms checkpoints for every consensus commitment, which is also used to control the reconfiguration of the protocol.
In simpler terms, Sui automatically views every user transaction as a person-to-person transaction. Validators will act as approvers and perform parallel transactions using Byzantine Consistent Broadcast with high throughput.
Highlights of Sui Network
Cheap and stable gas fees
Currently in the market, most blockchains have fluctuating gas fees that change rapidly, causing obstacles in user transaction experiences. Understanding this, Sui has designed gas in a unique way that is almost unmatched in the market.
Specifically, Sui will divide activities into 24-hour epochs, validators will only be able to vote on a gas fee level per epoch (reference price). Next, when transactions arise in protocols, these protocols will send a certain incentive amount to validators to keep the transaction levels as close to the reference price as possible throughout an epoch.
Narwhal & Tusk
As mentioned above, most transaction validation tasks are in the hands of validators, and this inadvertently creates a certain threat to the blockchain if these validators are hacked or intentionally harm the network.
Narwhal & Tusk is the consensus mechanism used by Sui to isolate the process of data transmission and consensus.
Tusk: Ordering and finding the position of transactions.
Narwhal: Preserving data availability when considered during the consensus process.
Scalability
Unlike how other blockchains arrange data into a block and then process it, Sui processes them in parallel by organizing data into independent objects through Byzantine Fault-Tolerant (BFT) consensus and Byzantine Consistent Broadcast (BCB).
Move programming language
Alongside Aptos, Sui is also one of the projects inherited and developed based on the Move programming language from Diem. By using this language, Sui has avoided the shortcomings that Solidity brings to developers and users. Move allows users to have self-determination over their assets by defining them as customizable objects.
What is SUI used for?
Paying gas fees on the network.
Voting on project governance proposals.
Providing liquidity on the network.
Staking rewards.
Sui Project Development Team
Sui was founded by Mysten Labs. The five co-founders of the project, along with some staff from Mysten, previously worked to develop the Diem project and the Move programming language.
Sui Investors
Sui has just completed both Series A and Series B funding rounds, raising a total of up to 336 million USD. Both funding rounds were led by a16z and FTX Ventures, along with the participation of many other investment funds such as Coinbase Ventures, Lightspeed, Standard Crypto, Franklin Templeton, Binance Labs,...
Sui Ecosystem
According to data provided by DefiLIama, at the end of 2023 and early 2024, this ecosystem has seen a doubling of cash flow each month with a Total Value Locked exceeding 300 million USD. In addition, throughout the recent development period, the Sui ecosystem has welcomed many different projects spanning various fields from SocialFI, Name Service to GameFi and Wallet.
The reason for this growth is that projects within the Sui ecosystem have witnessed explosive growth. Among them, the most notable are Scallop Lend, NAVI Protocol, and Cetus Protocol.
Scallop Lend (TVL: 62.2 million USD) is the first DeFi project funded by the Sui Foundation; this lending project will provide users with a low borrowing rate and high lending rate, while the staking APY on this platform once reached over 20%. In addition, Scallop Lend also provides users with an AMM tool for managing cryptocurrency on a unified platform.
Navi Protocol (TVL: 53.2 million USD) is currently the second lending protocol on Sui with over 54 million USD in total TVL. Navi Protocol operates with a lending pool model, allowing users to participate as liquidity providers for lending or borrowing in a decentralized manner.
Cetus Protocol (TVL: 47 million USD) is an AMM DEX platform built with the goal of creating a robust and flexible liquidity network, thereby enhancing the experience of DeFi users.
Conclusion
Above are the details about Sui and its rapidly developing ecosystem in the recent period. Through this article, we hope the admin has provided readers with an overview of Sui as well as the entire ecosystem of the project.
