What Is Sui? Everything You Need To Know

Sui Network is a Layer-1 blockchain designed to make it easier for developers to create and deploy smart contracts. One of the main features of Sui is its ability to process multiple transactions simultaneously, which is different from traditional blockchains like Ethereum and Bitcoin that handle transactions one after another.

To understand this better, imagine a single-lane road and a multi-lane highway. More lanes allow more cars to travel simultaneously, making the whole system more efficient. Similarly, Sui’s parallel processing system aims to improve the network’s efficiency and scalability.

Sui Network uses the Move programming language, which Facebook originally developed for its Diem project. Move allows developers to define custom assets on the blockchain. These assets are subject to strict ownership rules enforced by the language to prevent duplication, misuse, or accidental deletion. This feature makes Move suitable for building decentralised applications (Dapps) that require high security and reliability, which is extremely important for blockchains securing significant amounts of value.

To process transactions in parallel, Sui Network employs a two-part system called “Narwhal and Bullshark.” Narwhal is responsible for grouping transactions into batches, while Bullshark sorts these batches into a specific order before they are approved. This unique approach is designed to help Sui Network achieve high transaction speed and throughput.

The native token of the Sui Network is called SUI. It serves multiple purposes within the ecosystem, such as paying transaction fees, participating in network security through staking, and enabling token holders to engage in governance decisions.

Sui Network has the potential to support various use cases, including gaming, social networking, and decentralised finance (DeFi). It aims to enable secure ownership of digital assets, facilitate fast and secure peer-to-peer (P2P) payments, and provide a foundation for accessible financial services.

In the gaming industry, Sui Network may offer developers opportunities to create immersive experiences with real ownership of in-game items. It could also give users control over their data and interactions with social networks, promoting privacy and authenticity previously unavailable on centralised platforms.

The SUI serves as the native currency of the Sui Network ecosystem. As a Layer-1 network, SUI exists on its own blockchain, unlike many other altcoins that exist atop other blockchains, such as Ethereum.

SUI covers transaction fees and contributes to network security through staking. Staking involves locking up SUI to support the network’s security and integrity. In return, stakers receive rewards, similar to how you can lock up money in a term deposit with your bank and earn bonus interest. Additionally, by participating in staking, SUI holders contribute to the network’s robustness and have the opportunity to grow their SUI holdings.

SUI holders can also influence governance decisions, allowing them to participate in shaping the future direction of the Sui Network. The governance power depends on the individual voters holdings of SUI, so the more you hold, the greater your influence on the direction of the project.

SUI has a maximum supply of 10 billion tokens. However, only around 24% of these are in circulation, with the remainder planned to be released gradually. The project’s release schedule claims to be controlled to maintain a balanced ecosystem, encouraging long-term growth and value appreciation.

Pros

• High scalability: Sui Network’s unique consensus mechanism enables parallel transaction processing and high throughput (claimed to be over 125,000 transactions per second) without compromising security or decentralisation.
• Passive income from staking: The project’s Delegates Proof of Stake (DPoS) consensus has lower minimum staking requirements than other PoS networks like Ethereum. This lowers the barrier of entry for stakers, enabling more SUI holders to earn staking rewards and contribute to the network’s security.
• Fast transactions: DPoS relies on a limited number of delegates to validate transactions and create blocks, resulting in faster consensus and shorter transaction confirmation times compared to some other chains.
• Programming language advantages: Sui uses the Move programming language, which offers inherent security features and adaptability. Move’s object-centric model and module initialisers provide a more flexible and efficient way to interact with on-chain objects than the account-centric model used on other blockchains like Ethereum.

Cons

• Potential centralisation risks: In DPoS systems like Sui, a small group of delegates are responsible for validating transactions and creating blocks. This concentration of power among a few participants causes concerns about the network’s centralisation.
• Voter apathy: DPoS systems rely on token holders actively participating in the delegation process. If a significant portion of token holders becomes disengaged or apathetic, it could lead to a concentration of voting power among a few large stakeholders.
• New and relatively untested: As an emerging blockchain platform, Sui’s technology and consensus mechanism are relatively new and untested compared to more established networks like Ethereum and Bitcoin. This may lead to potential vulnerabilities or unforeseen issues as the network grows and evolves.
• Complexity for developers: While Move offers several advantages, it may have a steeper learning curve for developers accustomed to Solidity or other smart contract languages. This could initially limit the pool of developers able to build on the Sui platform.
• Ecosystem development: As a newer blockchain platform, Sui has a less mature ecosystem compared to Ethereum in terms of developer tools, decentralised applications (dApps), and user adoption. Building a robust and thriving ecosystem will take time and effort.

If you want to purchase SUI, you can do so through a reputable crypto exchange. Here’s a simple 5-step process to help you get started:

1. Choose a Reputable Exchange: Select a well-established and trustworthy centralised exchange that supports SUI trading. Some popular options include Coinbase, Binance and Kraken. When making your choice, consider factors such as security, user reviews, and support for AUD.
2. Create an Account: Visit the exchange’s website and sign up for an account. You’ll typically need to provide your email address, create a strong password, and complete a verification process, which may involve submitting proof of identity and address.
3. Fund Your Account: Once your account is set up, you’ll need to deposit funds into it. Most exchanges support various payment methods, such as bank transfers, credit/debit cards, or other cryptocurrencies. Choose the method that best suits your needs and follow the exchange’s instructions to complete the deposit.
4. Navigate to the SUI Trading Pair: After your account is funded, go to the exchange’s trading page and search for the SUI trading pair. Depending on the exchange’s offerings, this could be SUI/AUD or SUI paired with another cryptocurrency.
5. Place Your Order: Enter the amount of SUI you wish to purchase. You can choose to place a market order, which will be executed at the best available price, or a limit order, which allows you to set a specific price at which you want to buy SUI. Once you’re satisfied with your order details, confirm the transaction and wait for it to be completed.

Remember to prioritise the security of your SUI by transferring them to a personal wallet, such as a hardware wallet or a secure software wallet, after purchasing them on the exchange. This helps protect your assets from potential hacks or security breaches that may occur on centralised platforms.

While SUI shows promise as a native coin of the Sui Network, its success as an investment depends on several key aspects.

One crucial factor is the adoption and growth of the Sui blockchain. If the network can attract a strong developer community, foster the creation of innovative dApps, and establish partnerships with influential organisations, it could drive demand for SUI and potentially increase its value. However, if Sui fails to gain traction and struggles to compete with other blockchain platforms, the value of SUI may stagnate or decline.

Another important consideration is the technical development of the Sui Network compared to its competitors. If Sui can deliver on its promises of high scalability, fast consensus, and a developer-friendly environment, it could position itself as a leading blockchain platform. This could boost the value of SUI. Conversely, if competitors outpace Sui in terms of technological advancements or offer more compelling features, the demand for SUI may be limited.

Another significant factor is the performance of the cryptocurrency market. If the market experiences a bull run and investor sentiment remains positive, SUI could benefit from the rising tide. However, if the market encounters a prolonged bear market or faces regulatory challenges, the value of SUI and other cryptocurrencies may be adversely affected.

Macroeconomic factors, such as global economic stability, inflation rates, and geopolitical events, can also impact the performance of cryptocurrencies like SUI. Favourable economic conditions and a stable international environment may encourage investment in alternative assets, including SUI. On the other hand, economic uncertainty or market volatility could lead investors to seek safer, more traditional investment options.

Whether SUI is a good investment depends on carefully evaluating these factors and your personal risk tolerance. As with any investment, conducting thorough research, monitoring market trends, and making informed decisions based on your financial goals and circumstances is crucial.

This article is not an endorsement of any particular cryptocurrency, broker or exchange nor does it constitute a recommendation of cryptocurrency or CFDs as an investment class.  Cryptocurrency is unregulated in Australia and your capital is at risk. Trading in contracts for difference (CFDs) is riskier than conventional share trading, not suitable for the majority of investors, and includes the potential for partial or total loss of capital. You should always consider whether you can afford to lose your money before deciding to trade in CFDs or cryptocurrency, and seek advice from an authorised financial advisor.

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