Sui Blockchain: An Ambitious Bid to Improve Speed, Scalability, and Security
The Sui blockchain has garnered significant attention within the cryptocurrency sector, especially following its Mainnet launch on May 3, 2023. Developed by a team of former Meta executives, Sui represents a new generation of Layer 1 blockchains, aiming to address some of the most persistent challenges in the Web3 space, such as scalability, transaction speed, and security.
In this article, Dexola provides a detailed examination of Sui’s technology, its economic model, comparison with other blockchains, and its potential impact on the future of DApps and gaming.
The Genesis of Sui
In 2019, Telegram was developing the TON blockchain, and Meta was working on Libra (later Diem). Both projects faced regulatory challenges. TON finally adapted and found its niche. The team behind Libra, however, transitioned their work into a new venture and founded Mysten Labs.
Initially, the Sui project hinted at an airdrop but switched to a private sale after receiving an informal warning from the SEC. Participation in the private sale required being on a whitelist, which was granted to winners of Capy Holidays, members of Champions, or early Discord participants.
Those who participated in the private sale obtained SUI tokens at $0.03 each. Post-sale, these tokens traded around $1.20, yielding a significant return of over 40 times. This strong performance attracted considerable investment, signaling the project’s potential for future growth.
Sui Consensus and Technical Features
Sui uses a Proof of Stake (PoS) consensus algorithm with the innovative Narwhal and Bullshark protocols, enabling parallel transaction execution similar to zk-Rollups.
Key objectives include instant settlements, high throughput, reduced costs for web3 and DeFi projects, and compatibility with leading crypto platforms like Ethereum and Arbitrum.
- Narwhal is a high-throughput mempool that synchronizes and ensures data availability for validators.
- Bullshark (replacing the older Tusk protocol) combines Directed Acyclic Graph (DAG) and Byzantine Fault Tolerance technologies, allowing consensus without validator communication.
Sui uses the Move programming language, also used by Aptos, to address throughput limitations. Move allows Sui validators to process transactions in parallel, increasing efficiency. Sui can theoretically handle up to 300,000 TPS, although it will initially support 120,000 TPS, similar to Aptos.
The network also offers stable gas fees with a daily validator committee change, preventing frequent fluctuations common in traditional blockchains.
According to Sui’s GitHub and technical documentation, the blockchain consists of three main components.
- Objects. The core storage unit, managed by smart contracts, categorized into mutable (Move objects) and immutable (Move packages).
- Transactions. Record all changes to the network.
- Validators. Independent entities that process transactions and run Sui software on separate devices.
Sui uses PoS with Narwhal and Bullshark protocols for fast, parallel transactions, potentially reaching the highest TPS. It integrates the Move language for efficient processing and offers stable gas fees.
SUI Potential
Mysten Labs is backed by prominent investors such as Andreessen Horowitz (a16z), Redpoint, Coinbase Ventures, and Electric Capital. The company raised $36 million in a Series A round in December 2021 and sought an additional $300 million in a Series B round starting August 2022.
- Round 1. The price was $0.045, with a full release at Token Generation Event (TGE).
- Round 2. The price was $0.5, with 7.7% released at TGE and the remainder vested over one year.
The SUI token skyrockets 122% from August 5 to August 12, 2024, reaching $0.94 and outperforming most top 100 cryptocurrencies. This spike followed the launch of the Grayscale SUI Trust — the exposure to SUI via securities, tracking its market price minus fees, without the need for direct purchase or storage, — boosting the token’s market capitalization to $2.44 billion. Trading volume increased by 34.6%, reaching $478 million.
In May, Sui released 1.04 billion SUI tokens, accounting for 10.4% of the total supply and 39% of its market capitalization at that time. Regular token unlocks are scheduled weekly through the vesting period, with the amount progressively decreasing until 2023.
Sui Ecosystem Overview
The project team has established the fundamental infrastructure for interacting with the Sui Testnet. In August 2022, they launched Sui Explorer, which offers comprehensive details on blocks, addresses, and transactions with Suiscan and SuiVision variations.
The Sui Wallet, available as a Google Chrome extension, enables users to create and restore addresses using seed phrases, manage assets including NFTs, and interact with decentralized applications. Users can obtain test SUI tokens through faucets like the BlueMove NFT marketplace.
Over 60 projects are currently being developed on the SUI network. These include DEXs such as Suiswap and MovEx, DeFi applications like Cetus and Porto Labs, NFT marketplaces like Blue Move, Sui Art, and Sui Gallery. The blockchain will also connect with cross-chain bridges like Wormhole and Axelar Network, and feature blockchain games such as F1 Dog, Trial Xtrem, and Netmarble.
Sui vs. Other L1-Blockchains
| Feature | Sui | Solana | Aptos | Ethereum |
| Consensus Mechanism | Proof of Stake (PoS) with Narwhal & Bullshark | Proof of History (PoH) + Proof of Stake (PoS) | Proof of Stake (PoS) with Block-STM | Proof of Stake (PoS) (Ethereum 2.0) |
| Transaction Speed | Up to 120,000 TPS | ~65,000 TPS | Up to 160,000 TPS (theoretical) | ~30 TPS |
| Smart Contract Language | Move | Rust, C++ | Move | Solidity |
| Scalability Approach | Parallel transaction execution | High-speed consensus with PoH | High throughput with Block-STM and parallel processing | Layer 2 solutions like rollups, future upgrades |
| Mainnet Launch | 2023 | 2020 | 2022 | 2015 |
| Current Ecosystem | Developing; includes DeFi, NFTs, DEXs | Established; includes DeFi, NFTs, DEXs | Developing; focuses on DeFi, NFTs, smart contracts | Established; wide range of dApps, DeFi, NFTs |
| Development Language | Move | Rust, C++ | Move | Solidity |
| Block Time | ~0.5 seconds (approximate) | ~400 milliseconds | ~1 second (approximate) | ~13-15 seconds (approximate) |
| Validator Count | Dynamic; based on staking | ~1,000+ | Dynamic; based on staking | ~500,000+ (ETH 2.0 validators) |
| Transaction Fees | Stable, low fees | Low fees | Low fees | Variable; can be high during congestion |
Sui stands out with its innovative use of the Narwhal and Bullshark consensus mechanisms, which enable high transaction throughput of up to 120,000 TPS. This is achieved through parallel transaction execution, making it highly scalable. Its choice of the Move programming language, also used by Aptos, allows for efficient smart contract execution. Sui’s focus on low transaction fees and a stable fee structure is notable, offering predictability in cost.
Solana, using Proof of History combined with Proof of Stake, is known for its high transaction speed of around 65,000 TPS. It benefits from a relatively low block time of approximately 400 milliseconds, which contributes to its ability to handle large volumes of transactions quickly. However, its ecosystem is more mature compared to Sui, with a well-established presence in DeFi, NFTs, and DEXs.
Aptos features a theoretical maximum throughput of up to 160,000 TPS through its Block-STM technology, positioning it as a high-performance blockchain. Like Sui, Aptos employs the Move language, supporting parallel transaction processing. The blockchain’s focus on scalability and performance is evident, but its ecosystem is still developing, with ongoing efforts to expand its range of DeFi and NFT applications.
Ethereum, the most established among the four, has transitioned to Proof of Stake (Ethereum 2.0) to improve scalability and reduce transaction costs. However, its current throughput is about 30 TPS, significantly lower than Sui, Solana, and Aptos. Ethereum’s wide adoption and extensive ecosystem of dApps, DeFi, and NFTs provide it with a solid foundation, though its transaction fees can vary and be high during periods of network congestion.
In summary, while Sui and Aptos offer high theoretical transaction speeds with advanced scaling solutions, Solana’s established ecosystem and lower fees are strong competitive advantages. Ethereum remains the most widely used blockchain but faces challenges with transaction throughput and fees, which it addresses through ongoing upgrades and Layer 2 solutions.
Sui in 2024
The Sui blockchain has an ambitious Development Roadmap for 2024, focusing on enhancing its infrastructure, developer tools, and protocol capabilities. We wrote a summary of key upcoming features and updates.
RPC 2.0. Launched in late January 2024, RPC 2.0 introduces a new GraphQL API for the Sui blockchain. This upgrade significantly enhances the flexibility and efficiency of data queries and interactions for developers. By offering a more powerful and versatile API, RPC 2.0 aims to streamline development processes, reduce latency, and improve overall user experience. For the broader audience, this means more robust and responsive applications built on the Sui network, which could drive greater adoption and innovation within the blockchain ecosystem.
Encrypted NFTs. Launched in late March 2024, Encrypted NFTs use zero-knowledge proofs to keep NFT transactions private. This boosts security and trust in the NFT market by keeping user identities and transaction details confidential.
Cross-Chain Bridge. In 2024, Sui introduced a cross-chain bridge for transferring tokens between Sui and Ethereum. This enhances blockchain interoperability, enabling easier asset and data transfers across different networks.
Shared Object Deletion. Released in early February 2024, this feature allows for the deletion of shared objects and includes storage rebates. It improves resource management and reduces operational costs by reclaiming storage space and optimizing blockchain efficiency.
In Total
Progressing blockchain technology, Sui represents a significant advancement. This new platform introduces cutting-edge solutions to existing blockchain limitations, enhancing overall efficiency and scalability. By integrating these advancements, Sui sets a new standard for future blockchain technologies.
Its innovative use of the Move programming language offers new possibilities. Move simplifies smart contract development and execution, ensuring secure and flexible coding practices.
Delivering parallel transaction execution and a robust economic model, Sui addresses major challenges. The ability to process multiple transactions simultaneously significantly boosts network throughput.
Over time, Sui’s ecosystem will grow and evolve. As adoption increases, the platform will see expanded functionality and a richer set of tools for developers.
Redefining the decentralized web has immense potential. Sui’s advancements could transform how decentralized applications are built and interacted with. This potential extends to various sectors, including finance, supply chain, and digital identity, offering innovative solutions across multiple domains.
As it develops, Sui will provide new opportunities for developers, businesses, and users. The platform’s features will enable developers to create more sophisticated applications with greater ease.
Sui is well-equipped to become a cornerstone of the decentralized future. Its unique combination of technical innovations and strategic planning positions it as a key player in the evolution of blockchain technology.
Innovations in this space are shaping the future of blockchain technology. Advances like those introduced by Sui are driving progress and setting new benchmarks for what blockchain technology can achieve.
