Golden Encyclopedia | Is SUI the future of the Decentralization network?

Author: Bradley Peak, CoinTelegraph; Translation: Baishui, Golden Finance

1. What is the SUI Network?

Sui Network is an innovative blockchain platform designed to address industry challenges such as scalability, speed, and cost.

Sui was launched by Mysten Labs in May 2023. The company was founded by former Meta engineer who participated in the Facebook Diem project (formerly known as Libra). It aims to provide a Decentralization solution that can process a large number of transactions with minimal latency.

One of the prominent features of SUI is its parallel transaction processing. Although other networks such as Solana and Avalanche also use similar technology, SUI stands out through the complexity of coordination among validators.

This simplified approach makes the network more efficient and scalable, even under high traffic conditions, without the usual bottlenecks that typically affect other blockchains.

As part of it, Sui introduces an object-centric model. This not only allows for more granular transaction processing; it also allows digital asset to evolve and change over time, rather than remain static.

This makes the platform ideal for applications involving non-fungible Tokens (NFT), GameFi, and decentralized finance (DeFi), whose assets often require updates or modifications. In contrast, blockchains like Solana and Avalanche have been optimized for speed, but lack this flexibility in handling dynamic data.

In fact, as of September 2024, SUI has achieved significant growth, with over 18.19 million active accounts and processed over 4.58 billion transactions. These numbers highlight the widespread adoption of SUI among developers and users, especially for Decentralized Applications (DApps) that require high performance and low latency.

2. The Core Technology Behind the Sui Blockchain

SUI's core technology includes its innovative Move programming language, advanced parallel transaction processing, and Delegated Proof of Stake (DPoS) Consensus Mechanism, making it a highly scalable and efficient blockchain.

Architecture and Consensus Mechanism

Sui's architecture relies on its Move programming language, which was originally developed for the Diem blockchain.

Compared with other popular languages such as Solidity (used by Ethereum), Move can create smart contracts and digital assets in a more flexible and secure way. This makes it an ideal choice for games, decentralized finance, and non-fungible tokens, which require asset state changes without being plagued by typical transaction bottlenecks.

The core of SUI is the use of the Delegated Proof of Stake (DPoS) Consensus Mechanism. This mechanism allows users to stake their SUI Tokens to support validators responsible for verifying and processing transactions. More details will be provided later.

Did you know? The Move programming language is specifically designed to prioritize resource ownership and security, making it particularly resistant to common vulnerabilities such as reentrancy attacks. The language itself ensures the follow of asset ownership, ensuring the management of digital asset is more secure.

Technology that supports scalability and efficiency

Sui's view on parallel transaction processing is one of its most innovative technologies. Sui has been tested to handle up to 297,000 transactions per second (TPS), far exceeding the capacity of other blockchains supporting parallel transaction processing, such as Solana, Avalanche, and Polkadot.

In addition, SUI adopts a novel transaction Sharding method, in which different transactions are processed by different validators of the entire network. In short, this method allows the blockchain to handle workloads more efficiently, as tasks are distributed across the network, thus reducing the risk of congestion and ensuring that Money Laundering remains at a low level even under high demand.

Ensure Security and Low Latency

To maintain low latency, SUI uses an optimized Consensus engine called Mysticeti, which greatly reduces the final time of transactions.

In the terminology of the Block chain, "finality" refers to the point at which a transaction is considered irreversible. SUI's Consensus design achieves sub-second finality, which is crucial for applications where speed is of utmost importance (such as gaming or high-frequency Decentralized Finance transactions).

Enhanced security through multiple layers of protection. The network's object-centric model allows developers to write more secure smart contracts by limiting the attack surfaces typically associated with blockchain platforms. In addition, SUI's DPoS mechanism ensures that validators are incentivized to act in the best interests of the network and can quickly identify and punish any malicious behavior.

Three, SUI Token tokenomics

SUI Token is the native Token of the Sui blockchain, used for stake, governance, and incentivizing network participants. Its maximum supply is 100 billion Tokens, allocated to community development, contributors, investors, and development.

The SUI Token plays a core role in maintaining network operations and incentivizing participants. For example:

  • Validators are rewarded for staking SUI tokens and validating transactions, which helps to ensure network security.
  • The community's reserve grants and incentive measures provide support for developers, encouraging them to build DApps that drive platform innovation.
  • Users can also stake their SUI Tokens to support validators and receive rewards. In addition, users can participate in network governance by voting on key proposals, giving them a say in shaping the future of Sui.

Finally, the total supply of SUI is 100 billion Tokens, which are distributed in several categories to support the long-term rise and Decentralization of the network:

  • 50% is reserved for the community, including delegation plans, grants, research and validators incentives.
  • 20% allocated to early contributors.
  • 14% is allocated to investors.
  • 10% is held by Mysten Labs for development purposes.
  • 6% is allocated to application testers and community access plans.

IV. Use Cases of Sui Blockchain

From Decentralized Finance to gaming and Supply Chain management, SUI's architecture supports fast and efficient transactions, making it an attractive platform for developers looking to build on the cutting-edge Block on-chain.

Decentralization Finance (Decentralized Finance)

Due to its advantages, Sui has quickly become a strong competitor in the Decentralized Finance field. Some key Decentralized Finance platforms integrated with Sui include:

  • **DeepBook:**The native Decentralizationexchange (DEX) of SUI acts as a central limit order book, allowing users to trade assets with low fees and high liquidity. This infrastructure supports an increasing number of Decentralized Finance applications and helps create a more seamless trading experience.
  • Turbos Finance: An Automated Market Maker (AMM) built on SUI, providing non-custodial services for Liquidity and Token exchange. Supported by Jump Crypto, this project offers users an efficient Decentralized Finance environment with competitive returns.

Games and Non-fungible Tokens

As discussed, the object-centric model of SUI makes it particularly suitable for dynamic assets such as Non-fungible Tokens (NFTs) and in-game items, which can evolve over time. Here are two examples:

  • **SUI 8192:**A decentralized puzzle game built on the SUI network, where each player's actions are recorded as blockchain transactions. The game mints Non-fungible Tokens to represent players' achievements, demonstrating SUI's ability to handle large-scale game operations.
  • Grand Cross: Metaworld: This metaverse game is developed by Netmarble and uses SUI's low-cost infrastructure to support a high-capacity gaming ecosystem. Players can directly create, manage, and trade digital assets, including Non-fungible Tokens, on SUI Block on-chain.

Did you know that, unlike many other blockchains, the gas fees for these blockchains are entirely determined by computational demand, while Sui charges fees based on the amount of storage consumed by the required computation and transaction. This is particularly innovative for use cases such as Non-fungible Tokens and dynamic assets, as users can also receive storage refunds when deleting or updating on-chain data.

Supply Chain Tracking

SUI can handle complex data interaction required for transparent supply chain management, ensuring the secure and efficient tracking of every product's journey on-chain.

Although other Blockon-chain have implemented similar projects, such as IBM's Food Trust on Hyperledger and VeChain for luxury goods tracking, with the object-centric model of SUI, Supply Chain assets can be updated in real time at various stages of production and distribution.

This means that, while blockchain-based Supply Chain solutions have been proven to be feasible and effective, Sui has the right architecture to fully leverage the potential of blockchain in Supply Chain tracking.

Chapter 5, History of the SUI Blockchain

Sui Block chain was launched in May 2023. By September 2024, the number of active accounts has risen rapidly from 1 million to over 18 million. Innovative features such as zkLogin have been introduced, with Total Value Locked (TVL) exceeding 500 million dollars.

Here is the overview of Sui Blockchain history:

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  • Early 2022 - Start: After the abandonment of Meta's Diem project, a group of former engineers formed Mysten Labs with the goal of building a new blockchain to overcome the scalability and performance limitations of existing platforms.
  • May 3, 2023 - Mainnet Launch: Sui officially launches its Mainnet, opening the platform to the public. With support from over 100 validators and 400 nodes, developers can now build and deploy DApps on the network.
  • July 2023 - 1 million active accounts: Just two months after its launch, Sui has reached an important milestone, recording over 1 million active accounts.
  • August 2023 - zkLogin Release: SUI launched zkLogin, an innovative technology that allows users to log in to Web3 applications using their existing credentials on platforms like Google and Facebook. This feature greatly improves the user onboarding experience and bridges the gap between Web2 and Web3.
  • November 2023- 9 million active accounts and $500 million TVL: SUI has grown exponentially, reaching 9 million active accounts and a Total Value Locked (TVL) of over $500 million in its Decentralized Finance protocol, marking a significant leap in adoption.
  • 2024 - Continued Rise: SUI's network has over 18.19 million active accounts and has processed 4.58 billion transactions.

VI. The Future of Sui

Looking ahead, Sui aims to strengthen its already robust foundation by further optimizing its Consensus Mechanism and launching multiple initiatives. The Sui blog provides the latest information on future plans and developments. The ecosystem may expand its support for zero-knowledge aggregation and other Layer 2 solutions, which will improve transaction scalability and further reduce costs. Sui is also focused on expanding its Decentralized Finance ecosystem to support new financial products, services, and enhanced developer tools for creating innovative DApps. Additionally, there are plans to deepen partnerships with major gaming companies and explore AI integration for Decentralized applications.

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The content is for reference only, not a solicitation or offer. No investment, tax, or legal advice provided. See Disclaimer for more risks disclosure.
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