Sui token ($SUI), the native cryptocurrency of the Sui blockchain network, has just set a new all-time high (ATH) of $5.53, marking an over 100% increase in just a month. During the crypto market bull run, Sui tokens have also stood out as one of the top gainers and have brought investors millions of dollars of profits.
As the Sui Foundation continues to expand Sui network’s use cases and to achieve ít visions and missions, Sui is proving as a promising token. This blog will give a comprehensive understanding of the Sui blockchain network, its tokenomics, and utilities.
What is Sui blockchain?
The Sui blockchain is a permissionless layer 1 (L1) blockchain network designed for high throughput, low latency, and significantly low transaction fees – making it Suitable for applications serving millions of users.
The foundation team aims to create a blockchain that “favours people over platforms,” that “can remove untrustworthy intermediaries and protect our privacy”. Consequently, Sui blockchain network positions itself as a scalable infrastructure that’s fast, secure, and affordable, with the highest transactions per second (TPS) of 297,000 and approximately 400ms time to finality (on average). The Sui’s total value locked (TVL) has risen over 33%, now boasting $2.07B in TVL with a total of 38.8M active accounts and 8 billion transactions processed.
How does the Sui blockchain work?
Theoretically, the Sui network is designed to achieve infinite scalability while preserving the same security level seen in major blockchain networks like Solana or Ethereum. To achieve this, the Sui blockchain employs a range of advanced components, including the Move programming language, its parallel transaction execution technology, object ownership, and distributed computing.
The Move programming language
Move programming language is an open-source language derived from the original Rust. Move is created to optimise blockchain security by fixing the key weaknesses of Rust and allowing common libraries, tooling, and developer communities across blockchains with vastly different data & execution models.
On Sui, you can use Move to define, create, and manage programmable objects featuring user-level assets. However, the Move on Sui contains important differences from Move on other blockchains. Users & developers can find these detailed technical concepts on Sui docs..
Delegated Proof-of-Stake Consensus Mechanism
Sui network employs a Delegated Proof-of-Stake (DPoS) consensus mechanism to validate on-chain transaction blocks. DPoS is a variant of the standard Proof-of-Stake (PoS) and can somehow be viewed as a democracy government. In DPoS, network participants cast votes via staking pools for their favoured delegates, those who are presumed to be best equipped to protect the network, typically based on their reputation. Validating privileges are then reserved and awarded at random only to an “elite.” However, a validator can be replaced at any time by anyone who is more trustworthy.
There are about 100 active validators on the Sui network to help secure an efficient & fast Sui blockchain network.
Parallel Transaction Processing
Parallel processing leverages all available resources on the Sui network by making multiple CPUs work and distributing the network’s processing power to handle multiple requests simultaneously. This parallel transaction execution contributes significantly to Sui’s “lightning” speed of up to 297,000 TPS.
In Sui, every transaction explicitly specifies the objects on which it operates. These are what power the Sui blockchain to manage parallel transaction execution.
In fact, objects are the basic unit of storage in Sui. When you create a transaction, you must declare which objects the transaction will interact with. This includes any objects being read, modified, or transferred. By knowing exactly which objects a transaction will touch, Sui can determine if transactions can be processed in parallel.
Moreover, objects can have different types of ownership, such as single owner, shared, or immutable. The type of ownership affects how transactions can interact with the object and whether they require consensus.
If two transactions do not interact with the same objects, they can be executed in parallel. This is because there is no risk of conflict or inconsistency between the transactions.
Sui token – the Sui platform native asset
The native asset on Sui is called Sui. The total supply of Sui is capped at 10,000,000,000 (ten billion coins) with 2.93 billion Sui currently in circulation.
50% of the total supply is allocated for the community reserve, which the Sui team plans to use for initiatives such as delegation programs, grants, research and development, and subsidies for validators. Additionally, 14% of the supply is allocated to investors, while 20% has been distributed to early contributors as recognition for their participation during the network’s testing phases. Sui coins serve four purposes on the Sui network:
- To participate in the Delegate Proof-of-Stake mechanism
- Used to pay the gas fees required to execute and store transactions or other operations on the Sui network.
- Used as a liquid asset and experienced different decentralised applications (dApps) built in the Sui ecosystem.
- Sui also plays a vital role in governance.
Sui Blockchain Use Cases
Low Gas Fees
As of now, the average transaction fee on the Sui network is approximately 0.00249895 Sui (2,498,950 MIST), worth just under $0.0096 according to the current price. To maintain low and stable fees, the network calculates a reference charge for transaction validation using price submissions provided by validators during the current epoch.
The transaction fee is determined by multiplying the reference charge by the number of computation units required for the transaction and adding any applicable extra charges. As a result, simple transactions typically incur lower fees than more complex transactions.
Revolutionising gaming experiences
Sui’s scalability and high throughput make it a conducive platform for Web3 gaming. Its architecture supports dynamic NFTs and in-game economies, allowing for more engaging and interactive gaming experiences.
Advancing financial services
Sui’s blockchain facilitates near-instant peer-to-peer payments and asset transfers, providing the foundation for fast, secure, and accessible financial solutions.
Decentralising social platforms
Sui supports the creation of decentralised social networks, allowing users to retain ownership of their content, posts, and interactions while ensuring verifiability.
A typical example is Polymedia Chat, which offers a censorship-resistant platform for on-chain conversations, promoting authentic, uncensored interactions.
Expanding Digital Collectibles with NFT Projects
Though the number of NFT projects on Sui is currently limited, the network is set to see significant growth in both quality and quantity, fostering an ever-evolving landscape of digital collectibles and creative innovation.
