Sui Ecosystem Overview

Sui is a special blockchain that uses the Move programming language and is remarkably scalable. Learn more about the Sui ecosystem here.

Recently, Layer 1 blockchains have encountered many problems, which is also when new projects receive attention from the community. Among them, Sui is one of the most noticeable blockchains. In this article, we will learn about the emerging Sui ecosystem and answer the following questions:

What's on the current Sui?
What stage is Sui in?
Forecasting and looking for investment opportunities.

Core knowledge:

New Sui is in devnet stage, expected mainnet in Q4/2022
Sui is an L1 blockchain with many innovative points in terms of consensus mechanism, transaction processing, programming language, etc.
There have been many different ways to start participating in the Sui ecosystem

Summary of Sui

Sui is a new generation Layer 1 blockchain, like other new generation blockchains, Sui also aims to solve the "blockchain triangle". Sui introduces itself as a blockchain capable of handling all tasks and jobs on a single network with high performance. This means that Sui aims to focus on scalability and parallel transaction processing with low latency.

Project website: https://sui.io/

Sui is widely known as a fork from Diem, a blockchain development project of Meta (formerly Facebook). Sui's ultimate goal is to expand the Web3 ecosystem , creating a platform capable of meeting the needs of millions of new users.

With the launch of Sui, this project is seen as a direct competitor in the future of Solana in the non-EVM chain segment. Sui targets the main segment of NFT, Game, then DeFi.

Highlights of Sui

To receive the attention of a large community, Sui must be a special project with many differences.

1. Move Programming Language

As one of two projects that inherit Diem's legacy, Sui also uses a new programming language specifically for Diem, Move. Not only that, but Sui also develops and uses a slightly different version of Sui Move.

Not coincidentally, the Diem developers used a new programming language. Solidity (Ethereum's programming language) has seen a few vulnerabilities and hacks emerge, which cost Ethereum developers months and hundreds of thousands of dollars to audit code before deploying. declare. Move was born with the purpose of building secure smart contracts.

Built on top of Solana's Rust language, Move focuses on memory safety, can provide transparency for immutable values, and prevents memory data leaks. Instead of storing assets in hash maps and locked on a contract like Solidity, Move allows users to define digital asset types themselves into custom objects (read-only, owned, shared objects).

2. Narwhal & Tusk . Consensus Algorithm

To ensure that the network remains safe even if the nodes are manipulated and hacked, Sui uses the Narwhal & Tusk consensus algorithm.

Narhal & Tusk is a consensus algorithm in the Sui blockhain that separates data transmission from transaction consensus. Thus solving the Mempool problem - in traditional blockchain designs like Ethereum & Bitcoin.

The parallel naming of the consensus mechanism also reveals two different tasks:

Narwhal: Ensuring data availability when submitted leads to consensus.
Tusk: Specifies a specific order of data.

This is done in a layered 2-module model, so Narwhal can also be used in conjunction with other external cryptocurrencies like HotStuff, BFT or Tendermint… Narwhal has also been used by other blockchains such as: Celo, Sommelier.

3. Impressive TPS

Sui is a blockchain with high performance and high throughput. According to the results of an experiment, the Sui blockchain was able to achieve a performance of 120,000 TPS. If this number could be achieved under normal conditions, this would be a very large number. For ease of visualization, we can compare it to Ethereum's 15 TPS or even Solana's 65,000 TPS.

4. Stable designed gas charge

Most blockchains today have gas fees that fluctuate greatly according to changes in market demand. To keep gas fees low and predictable, Sui uses a gas design like this: Sui operates on a timed basis of each epoch (each epoch is 24 hours), the network's validator pool changes every epoch. At the beginning, the new validator team will vote for a fixed reference gas price for the whole epoch.

The protocol then provides a certain incentive for validators to keep transaction fees close to the reference price during the epoch. If gas fees are kept stable, transactions sent to Sui will also be processed at a more predictable rate.

Since Sui is a blockchain capable of linearly scaling throughput as more workers become available, validators can add workers in proportion to the increase in network demand to keep gas fees stable. This will give the user a better experience.

5. Scalability

Scalability is one of Sui's strong points, which Sui does thanks to its ability to process transactions in parallel. Most blockchains today have limited throughput because transactions must be ordered and placed in a block that is then settled gradually. The difference of Sui is that they will organize data into independent objects (objects) and process them in parallel.

Sui divides asset types into objects to perform transactions, of which there are 3 main types:

Owned object: Owned by a specific owner and can only be modified by that owner.
Shared object: Mutable , has no specific owner and can be included in the transaction of different parties without any permission.
Read-only object: Has no exclusive owner, cannot be changed by anyone after being published, and can be used in transactions by all users.

To process transactions in parallel, Sui uses two paths to reach consensus:

Byzantine Consistent Broadcast (BCB): For independent transactions that do not depend on other parts of the blockchain state, usually transactions involving owned objects and read-only objects.
Byzantine Fault-Tolerant (BFT) consensus: For complex transactions involving shared objects, these transactions will be sorted and processed sequentially.

→ This means that independent transactions will be processed in parallel, only requiring consensus for complex transactions. Thereby reducing network latency, improving throughput, helping Sui scale linearly horizontally.

Investors

Not only being noticed by technology, Sui also impressed the community by continuously successfully raising capital from the top names in the market right in the red market period. As of now, Sui has completed its first Series A funding round and is said to be conducting a Series B funding round.

Series A

Announcement date: 6/12/2021
Amount raised: 36 million USD
Main investor: a16z
Other Investors: NFX, Scribble Ventures, Redpoint, Lightspeed Venture Partners, Electric Capital, Samsung NEXT, Slow Ventures, Standard Crypto, Coinbase Ventures

Series B (ongoing)

Release date: Unofficial
Raised amount: $200 million (estimated)
Investor (known): FTX Ventures with at least $140 million
In this funding round, Mysten Labs is said to be raising capital at a valuation of $ 2 billion. A total of $236 million is expected to be raised.

Project team

The team behind the project also received a lot of attention. Behind Sui blockchain is Mysten Labs. In particular, the Mysten Labs team consists of members who have worked with the Diem project as well as the Move programming language.

The project members are all experienced and highly specialized people who have worked at many large companies, including:

Evan Cheng is the Director of R&D at Novi Financial (under Facebook).
George Danezis is a professor of security and engineering.

Sui's project team is considered to be a gathering of many talents, and with previous experience working for Diem, they are expected to bring Sui to a strong development.

The development stages of the Sui . ecosystem

After raising capital for the first time at the end of 2021, Sui's main events will take place in 2022:

March 22, 2022: Sui was officially announced to the community for the first time, introducing the characteristics, concept, and expanded form of Sui.
May 6, 2022: Sui launches DevNet, Sui's first network is launched. This is a network for developers trying to build products.
5/25/2022: Announcement of SUI tokenomics, introduction of economic model in Sui, incentives, uses of SUI token. In which 3 basic participants are User, SUI token holder and validator.
June 16 , 2022: Mysten Labs allows users to run fullnodes on DevNet. Currently, there are about 5,000 nodes running, from 65 countries and 271 different cities.
July 1, 2022: Announcement Sui Incentivized Testnet will be released around August this year, the testnet will be revealed gradually with the task of testing the functions and mechanisms of the network.
July 19, 2022: Launched Sui wallet, a tool to help users directly interact with dapps, create wallet addresses and manage assets on the Sui network.
August 3, 2022: Allows registration to participate in validator selection for the network. If selected, validators will be rewarded with 2,000 SUI for each testnet wave they attend and have the opportunity to become mainnet validators in the future.
Q4/2022: After the testnet is running stably, it is expected that around the end of 2022, Sui will launch the mainnet version.

Overview of the current ecosystem

Sui's ecosystem is still very new, the network is only in the DevNet stage, there are not many projects announced to deploy on this network. However, it is not unheard of, there have been first projects appearing in different areas:

AMM/DEX: MovEX is the first project in this array to appear. This project will be a hybrid version of AMM and Order Book DEX, with Move support so it can run on both Sui and Aptos. However, the product has not officially launched yet.
Infrastructure: In this array, two projects have appeared, Shinami and ChainX. Shinami is a project that provides API services and node services for developers on Sui. Meanwhile, ChainX is a L2 project for BTC that has been around for a long time, capable of extending iBTC to ecosystems using the Move programming language.
Wallet: In addition to the Sui wallet developed by Mysten Labs itself, there is another project, the Ethos wallet. This is a project from Nod Labs and is being built on DevNet, only early access.
NFT: It can be said that this is the most active development area of Sui. Although there is only 1 Collectible project, Sui Punks, Sui has 2 NFT Marketplaces that are very noticeable, BlueMove and Sui Gallery. In which, Sui Gallery has started to have the first NFT drops, allowing users to mint NFT on Sui devnet. In addition, there is also a Name Service project on Sui, a project about Name Service with domain names ending in ".sui".

→ In general, the Sui ecosystem is still quite new, the basic pieces have not yet appeared fully. However, it can be seen that the development trend of projects on Sui is still in a predefined order of priority (NFT, Game, DeFi, Social ...).

The latest information about projects on the Sui ecosystem will always be updated by the Coin98 Insights team in this article.

Comments and investment opportunities with the Sui . ecosystem

Identify

Sui offers a new solution for handling transactions as well as a new programming language, which is the key to Sui's great growth potential in the future. The new consensus mechanism solution helps Sui to expand without limits, the Move language helps Sui improve the weaknesses of Solidity.

However, Sui is only at the DevNet stage, theory may differ from practice. Solidity is still considered a relatively new programming language, so Move by Sui or Aptos is newer, there is no evidence that this language will not exist any holes. Furthermore, given that Solidity has taken the majority of the market share, the question is how to attract developers to use Move.

To be able to more accurately assess the potential of Sui, the best way is to wait until the project launches testnet and mainnet versions. At that time, it is necessary to monitor whether the project works effectively in the public environment, how the Move language affects developers as well as users...

The remarkable plus point of Sui is the talented team of projects and the biggest backer in the market, thereby receiving the attention of the community along with the support of VCs in developing the ecosystem.

Opportunity to make money

Currently Sui is still quite new, please be an early user of the project. The current projects on Sui are not many, they are still in the DevNet stage, can experience free products, and have the opportunity to receive retroactive later.

The first thing to do is to set up a wallet to interact with the Sui network, the simplest is to create a Sui Wallet. Once you have a wallet, go to the project's Discord channel to receive the faucet token SUI. Then use SUI to interact with dapps already on the ecosystem.

BlueMove and Sui Gallery are allowing users to mint their first NFTs, which are limited in duration and can become proof of early user support. Similarly, it is possible to mint the .sui domain name.

Mint NFT on BlueMove

Another opportunity with Sui is running a node, users can run a Sui node and register as a validator to receive incentives from the project. Sounds confusing and complicated right? To help you troubleshoot, Coin98 Insights has a detailed tutorial on how to run node Sui, refer to it now!

See also: Instructions for running a Sui node and a chance to receive Retroactive

summary

Sui with the current basic elements can be considered as a potential L1 blockchain project. The ecosystem on Sui is still in the formative stage and there are not enough pieces of the puzzle, becoming an early user of the project can bring many benefits to users.

Follow Sui's upcoming important activities such as testnet and mainnet launch to not miss any opportunities on the ecosystem backed by names like a16z, FTX, Coinbase...