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SUI explained: the future of asset ownership?

Are you confident you've caught up with all the trendy crypto buzzwords? Don't forget to add the SUI Network to your list. SUI is a permissionless Layer 1 blockchain that adopts a unique object-oriented data model and purpose-built programming language, Move, to support true digital asset ownership. While Solana primarily concentrates on decentralized finance (DeFi), SUI takes a different approach, aiming to excel in decentralized applications (DApps) and non-fungible tokens (NFTs). That's why SUI has been dubbed the "The Solana Killer" by several crypto publications.

TL;DR

  • Foundation and focus: SUI is a Layer 1 blockchain supporting instant transaction certainty, enhanced transaction speeds, and reduced smart contract deployment delays, setting it apart from other tier-one chains.

  • Move programming language: SUI uses Move, a programming language based on Rust, to simplify smart contract development and enhance DeFi accessibility and capabilities.

  • Innovative transaction processing: Features parallel processing by validators for increased throughput, reduced latency, and enhanced scalability, enabling applications in gaming, retail payments, and more without global consensus on a strictly ordered transaction list.

  • Efficiency and scalability: Achieves impressive speed and scalability by optimizing transaction handling, allowing for efficient processing through immediate completions and individual transaction validations.

  • Dynamic ecosystem for developers and users: SUI provides a developer-friendly environment with safety, verifiability, and expressivity in programming. It also offers user-centric features such as zkLogin for DApp access and a versatile SUI token for governance and transaction fees.

What is the SUI network?

SUI is a layer 1 blockchain, meaning it serves as the foundational infrastructure for verifying and processing transactions, similar to popular networks like Bitcoin and Ethereum. Layer 1 blockchains are the backbone that supports a specific token or a network of different tokens.

What sets SUI apart from other tier one chains is its primary focus on achieving instant transaction certainty, reducing delays in smart contract deployment, and enhancing overall transaction speed. To accomplish these objectives, SUI introduces Move, a native programming language based on the Rust crypto programming language. Move simplifies the development of smart contracts for developers, expanding access and functionality within the DeFi industry.

SUI's validators play a role similar to miners in other blockchain ecosystems. However, SUI aims to stand out by enabling parallel processing of transactions. This parallel processing approach is expected to increase the network's throughput, reduce latency, and enhance scalability. This opens up various potential applications for SUI, including gaming, retail payments, and enabling physical outlets to use SUI for transactions.

SUI scales horizontally to support this kind of transaction processing, meaning it can adapt to meet application demands without any limitations, resulting in low operating costs for each transaction. Importantly, SUI doesn't require global consensus on a strictly ordered list of transactions, which has been a significant bottleneck for many existing blockchains. This characteristic contributes to the efficiency and effectiveness of SUI's transaction processing, making it a promising option for various use cases in the blockchain space.

How does SUI blockchain work?

The SUI blockchain boasts impressive speed and scalability thanks to its optimized approach to handling transactions. Unlike traditional blockchains, SUI treats many transactions as simple transfers without complex interdependencies. This optimization allows the platform to process transactions more efficiently.

To achieve this, SUI keeps network connections open longer and completes each transaction immediately. The platform only locks the sender's address instead of the entire blockchain for straightforward transactions where users just want to send assets to recipients. This helps bypass the usual consensus mechanism for simple transactions. Instead of grouping transactions into blocks, SUI validates each transaction individually.

This strategy significantly reduces latency, enabling almost instant certification of each successful transaction. This high-speed and scalability are possible by establishing a two-way handshake between validators and requestors.

Now, let's look at four essential concepts in the SUI ecosystem:

Objects

SUI's basic unit of storage is called an object. The platform's storage revolves around objects, similar to accounts in conventional blockchains. For example, smart contracts are called Move packages, which can manipulate Move objects.

Transactions

All updates and changes to the SUI ledger occur through transactions. Each transaction includes metadata such as the sender's address, gas input, gas price, and authenticator.

Validators

SUI operates with various independent validators, each running its software instance on separate machines. These validators play a crucial role in the SUI blockchain by handling read and write requests from clients.

The distributed ledger stores programmable objects — each with a unique ID, individual addresses own these objects, and each address can hold multiple objects. Transactions sent by specific addresses update the ledger. These transactions can write, create, destroy objects, and transfer them to other addresses.

zKLogin

zkLogin makes it easy for users to sign into SUI DApps using their familiar web credentials, like Google or Facebook. Meanwhile, developers can use invisible wallets to hide blockchain actions from users, and offer an easier way for users to access their on-chain money. The zkLogin system provides a variety of account options, including mnemonic and hardware wallets, helping users to access DApps effortlessly.

What are the benefits of Sui's programming language, Move?

SUI's own programming language Move, offers several benefits for developers.

  • Safety by design: Move aims to prevent various security and financial challenges. It uses a type system and focuses on resources to make sure assets aren't unintentionally copied or destroyed.

  • Verifiability: The Move language prioritizes formal verification and mandates it for on-chain smart contract posting.

  • Resource-oriented: With Move, digital assets are called "resources" and can't be copied or deleted. This is important for representing valuable items, such as tokens, and prevents double-spending issues.

  • Fine-grained control: Developers can control data changes with Move by setting detailed access rules for authorized operations.

  • Expressivity: Move is highly expressive and can create various financial contracts and transaction logic despite safety limitations.

  • Custom modules: Developers can make custom Move modules, similar to libraries in other languages, for reusable logic.

  • Modularity: Move simplifies code reasoning and troubleshooting. Each module defines resource types and procedures.

SUI's community welcomes all developers, regardless of their skills. Meanwhile, support is readily available should you have queries about Move or the SUI ecosystem. You can also check out SUI courses for further learning opportunities.

What is the SUI token?

The SUI token has a total supply capped at 10,000,000,000 (ten billion tokens). Some of these tokens will be available for immediate use when the mainnet launches, while the rest will be distributed gradually over time or as rewards for staking.

The SUI token serves four primary purposes on the Sui platform:

Proof-of-stake participation

Users can stake SUI tokens to participate in the platform's proof-of-stake mechanism, which helps secure the network and validate transactions.

Gas fee payments

SUI tokens are used to pay for gas fees required to execute and store transactions or perform other operations on the SUI platform.

Versatile asset

SUI tokens are versatile and liquid assets that can be used for various applications, including standard functions like being a unit of account, a medium of exchange, and a store of value. Additionally, they enable more complex functionality through smart contracts, interoperability, and composability across the Sui ecosystem.

Governance

The SUI token plays a crucial role in governance by granting holders the right to participate in on-chain voting on important issues, such as protocol upgrades and changes to the platform.

Since the SUI token has a limited supply, it must be used across more economic activities as the platform unlocks various use cases and attracts millions of users.

Additionally, a storage fund creates monetary dynamics where higher on-chain data requirements result in a larger storage fund, reducing the amount of SUI tokens in circulation. This mechanism helps regulate the token's value and ensures long-term sustainability within the SUI ecosystem.

Why does SUI stand out in the gaming blockchain space?

SUI stands out as a blockchain uniquely tailored for gaming due to its game-first approach, prioritizing player experience, engagement, and agency. Its object-based structure sets SUI apart, designed to handle numerous small NFT assets efficiently while allowing developers the flexibility to modify these items.

One of the standout features of the SUI blockchain is the concept of dynamic game NFTs. These dynamic NFTs, or game items, empower game developers to alter the metadata of these assets without burning or reissuing them. This means that game items can evolve and carry a significant part of the game's history as they progress within the gaming ecosystem.

This dynamic capability opens up a world of possibilities for game developers. They can introduce new data to game items, reflecting achievements, milestones, or unique experiences associated with specific items. For instance, legendary weapons can acquire additional metadata, showcasing the glorious battles they've been a part of, or players' characters can accumulate traits and accomplishments, making them even more significant within the game world.

By offering this attractive proposition to game developers, SUI enables the creation of more engaging and immersive gaming experiences. Players can forge deeper connections with their in-game possessions, and the virtual world can dynamically adapt and evolve based on gameplay and story progressions.

What's next for SUI?

Enhancements to the Move programming language

The Move programming language frequently receives updates aimed at improving functionality and developer usability. One example of these updates is detailed in a blog post on the SUI foundation website.

Expansion of developer tools and SUI primitives

Following the release of impactful tools and primitives like zkLogin last year, SUI is set to introduce even more. These enhancements elevate the developer and user experiences by building upon the existing toolkit and introducing new functionalities that further enrich the SUI ecosystem.

Horizontal scalability and intra-validator sharding

SUI's scalability roadmap includes horizontal scalability through intra-validator sharding. This allows validator nodes to activate additional worker nodes to process transactions concurrently, providing efficient management of transaction volume surges and optimal network performance.

The final word

SUI blockchain's emphasis on Web3 support and asset ownership sets it apart in the blockchain space. While Solana concentrates on DeFi, SUI takes a unique approach, working to excel in DApps and NFTs and positioning itself to meet the demands of the digital art, gaming, and collectibles markets.

SUI is a layer 1 blockchain, providing the foundational infrastructure for verifying and processing transactions, much like popular networks such as Bitcoin and Ethereum. What makes SUI distinctive among other tier one chains is its focus on achieving instant transaction certainty, reducing delays in smart contract deployment, and enhancing overall transaction speed.

The introduction of Move, a native programming language based on Rust crypto programming, simplifies smart contract development for developers, expanding access and functionality within the DeFi industry.

It's essential to approach any blockchain project cautiously and complete thorough research before getting involved. Due diligence is crucial. Before engaging with blockchain projects like SUI, always understand the technology, risks, and potential benefits.

You can still join Learn to Earn by participating in Cryptopedia Season 4 on OKX wallet. You'll be rewarded SUI by completing the tasks. To access Cryptopedia, please download our app.

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