Next-Generation Blockchain: Sui’s Innovative Consensus and Rapid Transaction Processing

by Nov 30, 2023Blockchain Technology0 comments

In the rapidly evolving world of digital technology, new concepts and ecosystems are constantly emerging. One such ecosystem that has gained attention is Sui. In this comprehensive guide, we will delve into the Sui ecosystem, exploring its core components, functionalities, and potential applications.

What Is Sui?

Sui is a layer-1 blockchain that specializes in minimizing delays in blockchain transfers. Its primary focus is on delivering immediate transaction finality and high-speed transaction processing, making it a suitable platform for real-time use cases such as gaming, finance, and other time-critical applications. Sui uses Move, a Rust-based programming language, to write its smart contracts, prioritizing fast and secure transaction execution.

Sui

Sui achieves “horizontal scaling” by utilizing a method called “transaction parallelization,” which permits parallel agreement across diverse, independent transaction types. By organizing data as separate objects, Sui nodes verify independent transactions using a byzantine fault-tolerant proof-of-stake (PoS) consensus mechanism.

What Industries Can Benefit from Sui’s Innovative Consensus and Rapid Transaction Processing Capabilities?

Sui’s innovative consensus and rapid transaction processing capabilities have the potential to benefit various industries. Here are a few examples:

  • Gaming: Sui’s high-speed transaction processing makes it suitable for real-time gaming applications, enabling seamless in-game asset ownership, trading, and secure transactions.
  • Finance: Sui’s immediate transaction finality and fast transaction processing can enhance financial applications, such as high-frequency trading, cross-border payments, and decentralized finance (DeFi) platforms.
  • Supply Chain: Sui’s efficient transaction validation and data storage methods can improve transparency and traceability in supply chain management, reducing fraud and enhancing efficiency.
  • Messaging Services: Sui’s fast transaction execution and object-centric model can support secure and instant messaging services, enabling encrypted communication and decentralized messaging platforms.
  • Decentralized Identity: Sui’s capabilities can be leveraged to develop decentralized identity platforms, providing individuals with control over their personal data and enabling secure and efficient identity verification processes.
  • NFTs: Sui’s transaction speeds and object-centric model are well-suited for the creation, trading, and ownership of non-fungible tokens (NFTs), enabling artists, creators, and collectors to interact with digital assets in a seamless and secure manner.
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Who is behind Sui, and Who Are its Investors?

The team behind Sui is composed of Evan Cheng, Adeniyi Abiodun, Sam Blackshear, George Danezis, and Kostas Chalkias. These five individuals are former engineers of Meta who worked in the Novi division. They established Mysten Labs, the company responsible for creating and developing Sui.

Mysten Labs secured $36 million in a Series A funding round from Andreessen Horowitz (a16z) in December 2021. This was followed by a Series B announcement worth $300 million, with FTX Ventures leading the investment and contributing $140 million, valuing the startup at $2 billion. Other investors who participated include Jump Crypto, Apollo, Binance Labs, Franklin Templeton, Coinbase Ventures, Circle Ventures, Lightspeed Venture Partners, Sino Global, Dentsu Ventures, Greenoaks Capital, and O’Leary Ventures.

sui Investors

Sui has announced the launch of its incentivized testnet, which was initially planned for August 2022. The testnet will gradually introduce essential features to assess the network’s capabilities. The technical roadmap can be found on their website.

How Does Sui Work?

Sui distinguishes itself from other blockchains by implementing a distinct consensus and transaction processing mechanism. In a conventional blockchain, validators sequentially add transactions to the chain, limiting scalability by incrementally adding new records to the chain (vertical scaling).

How Does Sui Work?

Sui uses a different approach. As many transactions are not causally related, Sui does not require each transaction to be validated by all network nodes. Instead, it focuses only on the relevant data and avoids the need to validate the entire chain. Sui employs an object-centric model that stores chain data around objects rather than accounts, making it possible for Sui nodes to independently validate uncorrelated transaction flows without having to order all transactions, as in traditional blockchain models. This innovative data storage method allows Sui nodes to validate transactions independently and efficiently.

The transaction broadcasting and validation on Sui looks as follows:

  1. The sender sends a transaction to all validators.
  1. Validators examine the transaction for its accuracy and provide their weighted votes based on their stake.
  1. The sender obtains a majority of Byzantine-resistant votes and sends the outcome to validators as a certificate.

Sui’s object ownership model allows it to achieve transaction speeds of over 100,000 transactions per second. There are three types of asset ownership in this model: owned by an address (such as coins or NFTs), owned by another object (such as an NFT that is part of another NFT), and shared (such as AMM pools). 

Transactions involving shared objects are ordered, while those involving owned objects can be executed almost instantly in “single writer apps.” This means that Sui can focus on verticals such as NFTs, gaming, messaging services, social networks, and decentralized identity platforms that rely heavily on single-writer apps and develop them with web3 properties at the speed of web2 execution.

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To explain it simply, users are paying in advance for storage. The fees are gathered in a fund, which is used to regulate the portion of staking rewards in the future. As demand for storage increases, validators receive higher rewards.

How To Use the Sui Wallet?

To install the Sui Wallet browser extension, follow these simple steps:

Sui Wallet
  1. Visit the Sui Wallet browser extension page and download the wallet by clicking “Add to Chrome,” followed by “Add Extension.”
  2. Once the extension is added to your browser, click “Get Started” and then “Create a New Wallet.”
  3. Set up a unique password for the wallet. Note that this password is only applicable to this particular installation and not the global password.
  4. Re-enter the password and accept the Terms of Service.
  5. Click “Create Wallet.”
  6. Save the recovery phrase and click “Done.”
  7. Finally, click “Open Sui Wallet.”

What Are the Best DEX, Bridges, and DApps on Sui?

Best DEX on Sui

The best DEX on Sui is The Ocean DEX. The Ocean DEX is a decentralized exchange that combines the characteristics of two types of trading systems, namely the central limit order book (CLOB) and the automated market maker (AMM). The CLOB executes trades in real-time by matching all bids and offers based on time and price, while the AMM is a mathematical formula used to quote prices in DeFi, allowing traders to trade against a liquidity pool. Traders can also act as market makers by contributing liquidity to the pool. 

The Ocean DEX is an official partner of Sui, and the list includes other projects that have been evaluated for credibility by Sui’s engineering team and partnerships. However, at the time of writing, Ocean DEX has no official website or social media profiles.

Best Bridge on Sui

1. Axelar

Axelar

Axelar Network is a web3 protocol that uses proof-of-stake to ensure secure cross-chain communication. Its purpose is to enable users to effortlessly engage with different IBC chains and the Sui Network, including assets and applications.

2. Wormhole

Wormhole

The Wormhole protocol is widely used for interoperability purposes, enabling the transfer of data and value across 18 diverse blockchains. The protocol is planned to be integrated into Sui as well as other major blockchain networks such as Ethereum and Solana.

Best DApps on Sui

1. Ethos Wallet

Ethos Wallet

Ethos is a web3 wallet created for Sui that enables self-custody of digital assets. It requires only an email registration and can be easily integrated with an API by developers, resulting in a user-friendly experience for new users.

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2. SuiNS

SuiNS

The Sui Name Service (SuiNS) functions as the identity service on Sui, similar to the Ethereum Name Service found on the Ethereum blockchain. Essentially, it converts easily understandable addresses into the alphanumeric codes utilized to recognize wallet addresses.

What Are Some Web3 Games on Sui? 

1. Netmarble F&C

Netmarble F&C

Netmarble is a developer of games for mobile and desktop platforms, and has released multiple titles. Some of the most well-known games developed by Netmarble include Seven Knights 2, which is a role-playing game, A3: Still Alive, which is a massively multiplayer online role-playing game, and Merge Fantasy Island, which is a casual game set in a fantasy world.

2. Lucky Kat Studios

Lucky Kat Studios

Lucky Kat Studios is a game development company based in the Netherlands that specializes in creating web3 games that enable players to own in-game assets and participate in the metaverse. Their focus is primarily on developing games for mobile devices, and they have already created numerous games that have achieved multi-million downloads, including Magic Finder and Road Crash.

3. Gameplay Galaxy

Gameplay Galaxy

Gameplay Galaxy is a company creating an ecosystem for extreme sports games, and it is currently developing Trial Extreme, a game that incorporates web3 technology. This game will be the first of its kind, with unique characters, vehicles, and competitive arenas based on skill.

4. Gaggle Studios

Gaggle Studios

Gaggle Studios is a studio that creates online escape room games with a social gaming aspect. The games are designed for up to six players and come in various themes, with each game lasting between one to two hours. They can be played on both mobile and desktop devices.

5. Talofa Games

Talofa Games is creating a fitness-based game called Run Legends that incorporates a “move-to-earn” system where players must move to win. This game involves real-time battles while walking or running, and players can upgrade their in-game characters and earn rewards by exercising.

Conclusion

In conclusion, Sui’s innovative consensus and rapid transaction processing make it a promising next-generation blockchain platform. With its focus on immediate transaction finality and high-speed processing, Sui is well-suited for real-time applications such as gaming, finance, and time-critical use cases. By using transaction parallelization and a complex fault-tolerant proof-of-stake consensus mechanism, Sui achieves horizontal scaling and efficient transaction validation. As Sui continues to progress and expand its ecosystem, it holds the potential to revolutionize the blockchain industry and enable new possibilities in decentralized applications and digital asset ownership.

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