The Sui Network is a Layer-1 blockchain and smart contract platform launched on May 3, 2023. This platform was developed by Mysten Labs, a company of several former senior executives and network architects of the digital wallet Novi, Meta’s defunct program part of its cryptocurrency project.
The Sui blockchain’s native token, Sui (SUI), launched on the same day as the mainnet on several crypto exchanges. The Sui team claims their network is the first of its kind because of its instant transaction finality and remarkable speed. Sui Network also reduces latency in smart contract deployment. It also introduces high scalability without compromising blockchain security.
To differentiate itself from other smart contract platforms like Ethereum and Solana, Sui utilizes Move, a native smart contract programming language based on the Rust programming language used on other crypto platforms. Move allows developers to implement smart contracts more efficiently, expanding access and functionality within the decentralized finance (DeFi) industry.
How Does the Sui Network Work?
The Sui Network offers features and functionality common to other blockchains, including smart contract processing, decentralized applications (DApps) development, transaction settlement, and token issuance. However, unlike some competitors, Sui’s validation system provides parallel processing of transactions, which developers claim can result in higher throughput, reduced latency, and increased scalability. This parallel-process validation system could solve the blockchain trilemma of speed, scalability, and security.
Parallel transaction processing is achieved through horizontal scalability. It means that the network has no upper limit to meet application demand. The Sui blockchain does not require global consensus and does not have an ordered list of transactions, which speeds up the processing of transactions compared to rival blockchains. Sui’s parallel-process validation system could have a niche in various industries, such as gaming and retail payments.
The Sui Network implements a delegated proof-of-stake (dPoS) consensus mechanism, allowing validators (akin to miners in other blockchains) to stake SUI tokens to validate transactions. Every 24 hours, a new set of SUI holders pick validators for token staking. Staked tokens are locked during these 24-hour periods, also known as epochs. Holders can pull or change their tokens to new validators every new epoch, thereby incentivizing validators to act honestly.
The SUI Token
The SUI token facilitates the dPoS consensus mechanism by rewarding validators and holders that delegate their tokens to validators. It is also used to pay for transaction and operational fees. Holders also gain the ability to vote on network upgrades proportionally to the amount of SUI they stake. As of July 6, 2023, SUI was the 88th most valuable cryptocurrency by market capitalization, according to CoinMarketCap. The table below summarizes other relevant data for that date.
Early Controversy
A few days before Sui’s launch on May 3, 2023, Binance announced it would make SUI available through Launchpool. This platform allows users to contribute crypto funds to a liquidity pool in exchange for rewards. As expected, the announcement generated much interest in the new token among crypto investors. Justin Sun, the founder of Tron, deposited the $56 million in TrueUSD (TUSD) stablecoins into Launchpool to purportedly farm SUI tokens. Nevertheless, the Whale Alert platform publicly informed of this transaction.
Changpeng Zhao, CEO of Binance, indicated via Twitter that Launchpool is intended for retail users, not whales. Sun was warned of possible actions to prevent an SUI token grab. Ultimately, Binance refunded Sun's deposit, and the farmed SUI tokens were restituted to its TUSD liquidity pool.
Conclusion: Is SUI a Good Investment?
The Sui Network is a new and promising blockchain project. Its approach to processing transactions and scalability could solve the blockchain trilemma of speed, scalability, and security. Its native token, SUI, has the potential to be a profitable investment. This asset reached its all-time high price on May 3, 2023, trading at $1.7. Currently, it trades at around $0.65, approximately 61% below its historical maximum. Although the token has lost value since its launch, the price drop has not been catastrophic. It is worthwhile keeping an eye on this token. If you want to invest in SUI and other new tokens, LetsExchange.io offers competitive rates for various novel and promising crypto assets.
Disclaimer
Please keep in mind that the above information is based exclusively on our observations and is provided for informational purposes only. It doesn’t constitute any kind of financial advice nor represents an official forecast. Cryptocurrency is a highly volatile asset, and you are investing in it at your own risk.
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