👨‍🌾What is Sui (SUI)?

What is Sui the Network?

Sui is a layer-1 decentralized blockchain that supports smart contracts, letting developers create and run applications on its network. It’s designed to be fast and scalable, similar to other blockchains like Solana that prioritize low-cost, high-speed transactions. One of the things that makes Sui stand out is its ability to process multiple transactions per second, unlike networks such as Ethereum or Bitcoin, which tend to handle transactions at a slower pace.

To put it simply, you can think of Sui as a multi-lane freeway, where many cars (transactions) can move at the same time without causing traffic jams. In contrast, Ethereum and Bitcoin are more like single-lane roads, when too many cars try to drive through, things slow down. Sui’s ability to keep things moving efficiently, even when traffic is heavy, is what makes it appealing to developers and users.

The History of Sui

Sui started as a testnet in 2022 and officially launched its mainnet in 2023. It was created by Mysten Labs, a company founded by former Meta engineers who worked on the Diem blockchain and the Move programming language. Some key people behind Sui include Evan Cheng, Adeniyi Abiodun, Sam Blackshear, George Danezis, and Kostas Chalkias.

One of Sui’s major updates involved switching to the Narwhal and Bullshark consensus mechanisms:

• Narwhal helps ensure data is available and transactions are organized, even when the network is under pressure.

• Bullshark builds on Narwhal by finalizing transactions quickly, helping the network stay fast and reliable.

Sui also uses a delegated proof-of-stake (DPoS) system. This means people who hold SUI tokens can stake (or lock up) their tokens to help secure the network. If you don’t want to run a validator yourself, you can delegate your tokens to someone else who can, and you’ll still earn rewards. This approach makes the network more secure and gives more people a chance to participate.

Applications on the Sui Network

Sui works much like other networks such as Ethereum and Solana, and it already hosts applications. Here’s a look at a few:

NAVI Protocol

NAVI is a decentralized application that allows users to lend and borrow crypto assets. People can lend their crypto to the protocol in exchange for potential yield, making it an option for those looking to earn more from their holdings.

Cetus AMM

Cetus is an automated market maker (AMM) that runs on Sui. It’s similar to popular decentralized exchanges like Uniswap, allowing users to swap between cryptocurrencies without needing a centralized authority. Fast transactions and low fees make it a solid choice for trading.

Haedal Protocol

Haedal is a liquid staking protocol built on Sui, enabling users to stake their SUI tokens. What makes it unique is that users can still maintain liquidity while staking, meaning they can earn rewards without locking their assets away completely.

AlphaFi

AlphaFi is a yield aggregator that helps users find the best yield opportunities within the Sui network.

SUI The Cryptocurrency

SUI is the native cryptocurrency of the Sui network, and it plays a few important roles:

Transaction Fees

SUI is used to pay for transaction fees, or gas fees, on the Sui network.

Staking

Sui operates on a delegated proof-of-stake (PoS) system, where users can stake their SUI tokens to help secure the network. In return, they earn rewards, giving them a chance to grow their holdings over time.

Governance

SUI holders can also participate in governance, allowing them to vote on decisions that impact the future of the network. This gives the community a direct say in how Sui evolves.