What is Sui?
Sui is a cutting-edge smart contract platform prioritizing exceptional performance, scalability, and security. The platform employs a unique approach to transaction processing, allowing for unprecedented speed and scalability, while its Move programming language and Move Prover verification tool provide increased protection and security. The Sui ecosystem features its native token, SUI, which performs essential functions such as participating in staking, paying gas fees, and submitting or voting on governance proposals.
Sui employs asset-centric smart contract technology with use cases in finance, games, mutable and dynamic NFTs, and other applications. Overall, Sui aims to empower builders and collectors to conquer uncharted territory in the Web3 space by delivering nonpareil scalability, security, and a simplified user experience. Let’s hear the opinion of expert builders on Sui, Suipiens - What problems Sui is solving?
Sui team and investors
Sui was built by Mysten labs. Mysten Labs was created by five ex-Meta engineers in 2021. They previously were working on Diem projects. The CEO of Mysten Labs is Evan Cheng. Evan had extensive experience in engineering in tech giants such as Apple and Facebook. Before founding Mysten Labs, he was Director of R&D at Novi Financial wallet. Founders and team members are active on social media. Connect with them online.
After founding in September 2021, Mysten Labs rapidly brought the attention of investors and VCs and raised $300 million in a Series B funding round led by Coinbase Ventures, Jump Crypto, and Binance Labs. Here is a full list of Mysten Labs investors.
How does Sui work
Sui differentiates itself from other blockchains through its focus on speed, scalability, and security by circumventing consensus for simple transactions and using parallel transaction execution - transactions are independent of one another and are validated via byzantine fault-tolerant proof-of-stake (PoS) consensus mechanism.
Components
Sui also features a unique security approach incorporating the Move Prover verification tool to ensure correct formal specifications. Additionally, Sui uses the Move programming language based on Rust and provides a simplified developer experience.
The Move Language
Move is an open-source programming language developed by Diem (ex-Meta project). The language is designed to facilitate the creation and management of smart contracts on the blockchain. Move is a statically-typed language, meaning data types are checked at compile time rather than runtime.
Move features ownership model and runtime features such as the ability to execute partial transactions, which enables the blockchain to roll back transactions that may cause issues before they are fully committed. Another popular Move-based blockchain is Aptos.
Parallel execution
In traditional blockchain systems, all nodes in the network must reach a consensus on the state of the blockchain before new transactions can be added. This can lead to bottlenecks and slow processing times, particularly as the number of transactions on the network grows.
Parallel execution can help alleviate these issues by allowing nodes to process multiple transactions simultaneously. Sui processes transactions involving non-overlapping states in parallel and distinguishes between single-owner objects and shared objects to use different consensus protocols depending on the type of object involved in a transaction
Gas pricing and fees
The gas price mechanism includes a computation gas price and a reference gas price, which is set by a validator-wide survey at the start of each epoch. Validators are incentivized to honor the reference gas price through a tallying rule and incentivized stake reward distribution rule. This mechanism encourages healthy competition for fair gas prices and aligns incentives between SUI token holders, validators, and users.
Storage fees
Sui's storage fee mechanism is designed to ensure that the costs of on-chain data storage are offset in a fair and sustainable manner. When users submit transactions on the Sui network, they pay both computation and storage fees. The collected storage fees are deposited into a Storage Fund, which is then used to compensate future validators for the extensive storage needed when entering the ecosystem.
Sui consensus mechanism
Sui's consensus mechanism is divided into two types of assets: owned objects and shared objects. Owned objects skip consensus and only go through validation, while shared objects require consensus for ordering agreement among nodes after the validation. Sui employs the Narwhal DAG-based mempool and an efficient Byzantine Fault Tolerant (BFT) consensus via Bullshark or Tusk for shared objects.
Narwhal ensures data availability, while Bullshark or Tusk agree on the specific data ordering. Sui's DAG-based mempool enables parallelized processing at the execution layer, while its Byzantine Consistent Broadcast (BCB) algorithm called Fast Pay enables high TPS through minimalized peer review among validators.
Sui's consensus design uses a directed acyclic graph (DAG) based system where validation happens at a transaction level rather than a block level. This enables high-throughput parallelization of the system with multi-proposers and prevents the double-spending problem.
In Sui, the consensus process operates on an epoch-by-epoch basis, and node validators are set for the duration of the epoch. Validators use delegated proof of stake (dPoS) to vote for transaction validity. Narwhal operates in rounds to ensure data availability for the consensus process.
Sui Tokenomics
Sui token is the native token of the Sui blockchain platform. It serves as a primary medium of exchange and a store of value. The maximum supply of SUI tokens is capped at 10 billion, with a large portion of the total supply to be liquid upon mainnet launch. The remaining tokens will vest over the coming years and be used to distribute future staking rewards.
The Sui ecosystem has five interrelated components: the SUI token, gas fees, Sui storage fund, delegated proof of stake, and on-chain governance. Gas fees are levied on all network operations and are used to reward actors participating in the PoS mechanism. The Sui storage fund compensates validators for storing on-chain object-related data. Delegated proof of stake is used to distribute staking rewards to participants of the PoS mechanism. Finally, on-chain governance is used to govern chain parameters and protocol upgrades.
SUI token holders can stake their tokens to secure the network and earn additional SUI tokens as a reward. They can also participate in Sui's governance operations, including voting on on-chain protocol upgrades. Validators such as Everstake validate transactions submitted by users and secure the network.
The Sui ecosystem aims to incentivize entities participating in the ecosystem through its robust economic model. The community reserve makes up 50% of the total token supply and is allocated to a delegation program, grant program, research and development, and validator subsidies. The remaining token distribution is allocated to early contributors, investors, the Mysten Labs treasury, community access programs, and app testers.
Sui’s roadmap
Everstake was selected to participate in Wave 1 of Sui Testnet. During Wave 2, Everstake was one of the leaders in the “Frenemies” validator contest. Everstake plans to enter Wave 3 as an Independent Staking Node Operator.
Currently, builders can work on an internal devnet that runs a Sui network, utilizing network stack and benchmarking throughput and latency in various configurations.
In the coming months, there will be several releases, including:
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A public Devnet that allows Sui devs to do everything mentioned above on a shared network powered by Mysten-operated authorities.
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A public testnet that onboard s a diverse set of non-Mysten nodes to the network.
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A public mainnet with real assets and production applications.
Other development plans include protocol stabilization, implementing reconfiguration and staking, ledger and state checkpoints, aligning Gateway Service Rust/REST/wallet APIs, finalizing REST data model (aka SuiJSON), finalizing core data types, authority "Follower" APIs to support replicas, integration of shared objects and consensus, selecting principled gas costs, and event indexing hints.
There are also plans for SDK and ecosystem development, including a block explorer, key management and wallet prototypes, support package publishing via REST API, more informative error messages, and more convenient APIs that hide gas object selection and nested object authentication.
Finally, there are plans to improve Move development by allowing objects used in authentication but not passed to entry points, adding explicit syntax and compiler enforcement for entry points.
Network
Even before the mainnet launch, Sui's Twitter page had over 300,000 followers, while Sui Discord had over 600,000 users. This makes Sui one of the largest Web3 communities. It is led by the Director of Ecosystem Koh Kim.
Sui creators and builders empathize with asset-centric smart contract technology that helps to create mutable and dynamic NFTs. This is one of the reasons that Sui has one of the most diverse and followed NFT communities in Web 3, including Funnybuns, Suipiens, Cosmocadia, and others.
Sui has a large number of wallets with extended functionality. You can play Games & Apps, use Faucet to import testnet tokens, create your first NFT, and get to know the Sui marketplace. Notable wallets are Sui Wallet by Mysten Labs, Ethos wallet, and Martian wallet.
Sui marketplaces are where the magic happens. Sui has many NFT marketplaces that offer low fees, useful functionality, etc. Clutchy is one of the most hyped NFT marketplaces, and it has many unique features, like a launchpad and built-in games that you can play just by logging in via your wallet. Other notable NFT Marketplaces are KeepSake and GallerySui.
DeFi is the heart of any blockchain, and Sui has some interesting projects to check out. Start with MoveEx, the 1st Hybrid Liquidity DEX on @SuiNetwork that recently partnered with Sui Foundation to build a central limit order book.
Other honorable mentions are Comingchat, a SocialFi-based Web3 portal application with in-built wallets, games, and other DeFi and GameFi solutions that also build Dmens, which is a Sui-based on-chain Twitter alternative. Sui Name Service is one of the most active Sui projects that connect the community and helps projects to get their web3 Sui identity.
We asked one of the active community members and Co-Founder and creative director of Studio Mirai, Kotaro, why they chose Sui to build on. Here are the main reasons he mentioned:
Sui takes part in and hosts numerous offline events in Asia, America, Europe, and beyond. You can learn more about the upcoming Sui here. If you want to know more about Sui projects, follow our team member Olee on Twitter.
Staking
Staking is the process of participating in the operation of a blockchain network by delegating a part of the balance to a block producer (or validator) to provide the right to partake in the block production process and earn rewards from it. This process is essential for DPoS blockchains, as it allows for greater decentralization, minimizes the chances of network disruption, and provides a secure and energy-efficient alternative to traditional mining.
Staking is a safe and profitable way to manage your crypto, allowing you to earn rewards while maintaining control over your assets. Compared to holding or trading, staking provides a steady source of income with fewer risks associated with market volatility. Additionally, it provides an additional layer of safety because of the lock-up period. Finally, staking provides an opportunity to actively participate in the blockchain network and contribute to its growth and development.
Everstake is one of the validators on Sui and the biggest decentralized staking provider, with 99.9% uptime. The company has used enterprise-level hardware for the past six years to run nodes for over 70 blockchain networks. Everstake makes Web3 closer and more understandable for individuals by providing staking services and generating educational content. Everstake aims to build trust and foster a strong community by providing high-quality service and support to our delegators.
Staking Sui
Staking is one way to participate in a proof-of-stake mechanism, where users can lock up their tokens as collateral to validate transactions and secure the network.
The Sui team is currently working on staking as one of the features of the blockchain, and Everstake has been chosen as an Independent Staking Node Operator that is currently participating in the Sui Testnet. You can learn how to stake your Sui coins on Everstake’s main page.
Please contact our Blockchain Manager, Olee, on Twitter, book a call, or visit our Discord if you need help staking Sui.
SUI token delegation
Sui uses a delegated proof-of-stake mechanism (DPoS), allowing SUI token holders to delegate their tokens to any validator of choice.
The total stake delegated to a validator is in direct relation to the validator's voting power, and rewards are distributed at the end of each epoch and are derived from transaction fees (gas fees).
Economic Model
The Sui Economic Model is designed to align incentives across the various entities participating in the Sui ecosystem. The Sui economy has three main participants: users, SUI token holders, and validators.
The SUI token serves four purposes: staking, paying gas fees, as a versatile and liquid asset, and as a governance right. Sui's gas pricing mechanism delivers low, predictable transaction fees and prevents spam and denial-of-service attacks. Sui also has an efficient and sustainable economic mechanism for funding data storage, including a storage fund and a deletion option.
The Sui Blockchain relies on delegated proof-of-stake to determine the set of validators who process transactions, and Sui governance changes are passed through on-chain voting proposals. Overall, the Sui Economic Model is tailored to operate smoothly in sync with Sui's engineering design.
Stake reward distribution
Sui uses a delegated proof-of-stake system to determine the set of validators who process transactions, and the stake rewards are distributed at the end of each epoch. Stake rewards are distributed to validators and SUI delegators based on their share of the total stake in the system. The storage fund is also considered in calculating the epoch's total stake, so validators receive more stake rewards relative to SUI delegators whenever Sui's on-chain data storage requirements are high.
Sui's economic design includes a storage fund that redistributes past transaction fees to future validators to compensate for storage costs. Holders of SUI tokens can delegate them to validators and participate in the proof-of-stake mechanism. Stake rewards for validators and delegators are an important incentive for honest behavior by the Sui platform's operators.
Sui FAQs:
What is Sui?
Sui is a cutting-edge smart contract platform prioritizing exceptional performance, scalability, and security.
What is Everstake?
Everstake is one of the validators on Sui and the biggest decentralized staking provider, with 99.9% uptime. The company has used enterprise-level hardware for the past six years to run nodes for over 70 blockchain networks. Everstake makes Web3 closer and more understandable for individuals by providing staking services and generating educational content. Everstake aims to build trust and foster a strong community by providing high-quality service and support to our delegators.
Can I stake Sui with Everstake?
Yes, you can stake Sui with Everstake.
