What is Sui (SUI) Crypto? How Does It Work?

New crypto projects pop up all the time, each trying to solve problems like speed, scalability, or cost issues of the Ethereum blockchain.

New crypto projects are constantly emerging, each aiming to solve problems like speed, scalability, or the cost issues of the Ethereum blockchain. Some projects are designed for simplicity of use, while others are better suited for dapps or games. Among these projects, Sui is a layer-1 blockchain that stands out with its unique "Move" programming language.

This complete guide will review what Sui crypto is, how it works, its working architecture, its use cases, and how it compares to other blockchains.

What is Sui crypto?

Sui is a layer-1 blockchain built for speed, scalability, and low-cost transactions. It launched its mainnet on May 3, 2023. Unlike Ethereum or Bitcoin, which process everything in a single line, Sui can handle transactions in parallel. This means it can perform many tasks at once, making it capable of processing up to 300,000 transactions per second (in theory).

The blockchain runs on a delegated proof-of-stake system, so people can stake their SUI with validators to earn rewards. Moreover, Sui uses the Move programming language, which originated at Meta. This language keeps smart contracts safe by preventing errors like double-spending. Another interesting aspect is its object-centric model. It treats assets like NFTs or tokens as objects with their own rules, simplifying management.

Transaction fees remain minimal, often lower than a cent. The network reached a peak of 9,029 transactions per second in July 2023, demonstrating its ability to handle real-world use cases.

The goal of Sui is to bring Web3 to billions of people, focusing on fast, cheap, and secure digital ownership for things like games, payments, and social platforms.

Who created the Sui network? A brief history of the Mysten Labs team

The creators of Sui are from Mysten Labs, a company founded in 2021 by five former Meta engineers: Evan Cheng, Sam Blackshear, Adeniyi Abiodun, George Danezis, and Kostas Chalkias. They previously worked together at Meta's Novi division, developing the Diem blockchain and the Move language before Meta's shutdown of the project.

Mysten Labs secured $36 million in December 2021 from Andreessen Horowitz and other investors. Later, in September 2022, they obtained an additional $300 million from investors like FTX Ventures and Binance Labs, valuing the company at $2 billion.

How does Sui work?

The core of the Sui network is its ability to process transactions quickly and in parallel, which is crucial for handling high volumes of activity. This stands in contrast to older blockchains like Bitcoin, which process transactions sequentially, forming a single chain of blocks.

In the case of Bitcoin, every node in the network must process and agree upon the same transactions, which can slow down the throughput, especially as the network becomes more congested.

To maintain efficiency, simple transactions like sending SUI tokens are handled directly by validators without requiring consensus from the entire network. On the other hand, more complex transactions, such as smart contract execution or transactions involving shared objects, do require consensus, which is reached through a hybrid Byzantine Fault Tolerance model.

This approach allows for parallel execution of transactions that don't depend on each other, maximizing throughput while keeping latency low.

The simplest transactions can be confirmed in less than a second, while the most complex ones, like trading on a shared liquidity pool, still take around two seconds to complete.

The implications of this architecture are significant. While other blockchains might struggle with a few thousand transactions per second, recent tests with 50 nodes have shown Sui achieving speeds of over 300,000 transactions per second.

The modular design of the network also enables horizontal scalability. As demand increases, more validators and workers can be added to the network to handle the growing workload.

Moreover, the object-centric model simplifies sharding, a technique used to split data for efficiency. In the case of Sui, each object is self-contained and doesn't require synchronization with other objects or the entire network. This property is crucial for enabling efficient sharding, further contributing to scalability.

What is the Sui token used for?

The primary use of the SUI token is to pay for transaction fees on the network. These fees are minimal, typically less than a cent in fiat currency.

Another key function of the SUI token is staking. Users can lock up their tokens to become validators, economically securing the network and earning rewards in the process.

Furthermore, the SUI token will be used for governance in the future, allowing token holders to vote on proposals that affect the network's development.

The tokenomics of Sui

The total supply of the SUI token is 10 billion, and this number will not change. At launch on May 3, 2023, only a small portion of the tokens became