Are you curious about Sui Layer 1 and want to learn more? Look no further! Read below for a comprehensive guide that covers everything you need to know about this innovative blockchain. We’ll explore its unique features, advantages, and how it stands out in the ever-evolving crypto landscape.
What is Sui?
Sui is a Layer 1 blockchain that gives creators and developers a seamless building experience. As a decentralized proof-of-stake (dPoS) blockchain, Sui offers horizontally scalable throughput and storage, enabling high-speed and low-cost application development. With its delegated proof of stake (dPoS) network, validators can stake $SUI, the platform’s native cryptocurrency, to help secure the network.
Sui’s mission is to become the first Internet-scale programmable blockchain platform, bringing cutting-edge technologies to the forefront and revolutionizing the blockchain space.
Backed by Mysten Labs, a company founded by several former Facebook (now Meta) Novi research team members, Sui isn’t just a derivative of the Diem network or an incremental improvement. It’s a groundbreaking advancement in blockchain technology, crafted to meet the needs of the next generation of crypto users and developers.
What is Sui’s main feature?
- Scalability and instant settlement: Sui supports horizontally scalable processing and storage for high-throughput and low-latency transaction settlement.
- Secure: Sui provides a secure smart contract language for developers to define rich and composable on-chain assets for a better user experience.
- Narwhal and Bullshark DAG memory pool and efficient Byzantine fault-tolerant consensus: Sui uses Narwhal and Bullshark DAG as a memory pool and efficient Byzantine fault-tolerant consensus mechanism to ensure the reliability and consistency of transactions.
- Causal order and total order enable massively parallel execution: Sui’s causal order and total order mechanism allow the execution of many transactions in massive parallel, reducing latency and increasing throughput.
- Object-based data model: Powered by the Move programming language, Sui’s object-centric data model simplifies the developer experience and supports composable objects and NFTs.
How Does Sui Work?
Sui blockchain stands out from the crowd with its unique approach to handling transactions. Traditional blockchains add transactions one after another, slowing down as more transactions pile up.
Sui takes a different route. Instead of requiring every transaction to go through all the computers in the network, Sui only examines the relevant data needed for validation. Here’s how transactions work on Sui:
1. The user sends their transaction to all the validators in the network.
2. Validators check if the transaction is valid and vote on it based on their involvement in the network.
3. The sender collects votes from most validators and sends a certificate back to the validators.
This simple process allows Sui to handle over 100,000 transactions per second!
Comparative Analysis of Layer 1 Blockchains: Sui vs. Others
After understanding SUI, let’s examine its strengths and weaknesses from a data perspective relative to other popular L1 chains. The table below provides a data-driven comparison of these blockchains:
| Blockchain | TVL | Protocol Numbers | Mcap | Mcap/TVL |
| Ethereum | $62.393b | 1095 | $438.43b | 7.04 |
| BSC | $5.079b | 765 | $92.73b | 18.32 |
| Solana | $4.13b | 146 | $63.37b | 15.25 |
| Sui | $617m | 34 | $2.19b | 3.45 |
| Aptos | $339.4m | 44 | $3.20b | 9.41 |
Pros
- Balanced Mcap/TVL Ratio: Sui’s Mcap/TVL ratio of 3.45 suggests that its valuation reasonably aligns with the value locked in its ecosystem. This balance can attract investors looking for growth potential without an overinflated market cap.
- Early Stage with Growth Potential: Being in the early stages with only 34 protocols indicates significant room for expansion. As more developers and projects join Sui, the ecosystem can grow rapidly.
Cons
- Lower TVL: With a TVL of $617 million, Sui is far behind the other L1s like Ethereum and BSC.
- Fewer Protocols: Sui’s ecosystem supports only 34 protocols, significantly less than the others. This limited number of applications might restrict user engagement and the overall growth of the ecosystem.
Ecosystem on Sui
No matter what piques your interest— DeFi, NFTs, GameFi, or more—there’s undoubtedly a dApp in the SUI ecosystem that will catch your eye.
Here are a few highlights from the SUI ecosystem:
DEX— NAVI Protocol
NAVI Protocol is the Native One-Stop Liquidity Protocol on Sui. It enables users to participate as liquidity providers or borrowers within the Sui Ecosystem. As a liquidity provider, you can supply assets to the market and watch your yields grow. As a borrower, NAVI Protocol offers flexible loan options for various assets within the Sui Ecosystem.
P2P Market— Scallop
Scallop is the pioneering P2P Money Market for the Sui ecosystem. Its mission is to provide a reliable and secure lending platform where users lend and borrow directly from each other without intermediaries. This P2P setup reduces fees and makes loans more accessible. For lenders, Scallop’s high-interest pools turn your cryptocurrencies into sCoins that accrue interest over time. For borrowers, Scallop offers clear loan terms and dynamic interest rates based on supply and demand.
CDF— Bucket
Bucket Protocol is the leading Collateralized Debt Position (CDP) protocol within the Sui ecosystem. It allows users to collateralize their crypto assets, such as $SUI, LSTs, and wETH, to generate $BUCK stablecoin. The value of $BUCK is pegged to 1 USD. Users can deposit assets into a smart contract to set up a Collateralized Debt Position (CDP) and immediately borrow $BUCK to create liquidity. Users can also deposit $BUCK into the sBUCK Saving Pool to share in fee revenue.
Strategy— Strater
Starter is a one-stop DeFi strategy hub for the Sui ecosystem. By integrating protocols like lending, DEXes, and LSTs, Strater simplifies complex and tedious operations, allowing users to enhance their capital efficiency and increase their returns effortlessly.
To discover more about the rapidly growing ecosystem, make your way to the Sui ecosystem page and start exploring today!
About XY Finance
XY Finance is a cross-chain interoperability protocol aggregating DEXs & Bridges. With the ultimate routing across multi-chains, borderless and seamless swapping is just one click away.
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