What is Sui?
Sui is a layer 1 blockchain, meaning a base network that runs its own transactions rather than relying on another chain. Its public mainnet went live in 2023. Sui was built by Mysten Labs, a company started by former Meta engineers who had worked on the Diem payments project, and the network is supported by the Sui Foundation.
SUI is the network's native coin. It is needed to pay transaction fees and to take part in securing the network.
How does it work?
Most blockchains store data as account balances. Sui instead treats almost everything as an object: a coin, an in-game item or a piece of app data, each with a clear owner. Because many transactions touch different objects, the network can process unrelated transactions side by side instead of strictly one after another.
Developers write apps on Sui in Move, a programming language first created for Diem and designed to make it harder to accidentally copy or lose digital assets. The network is run by validators chosen through delegated proof of stake: SUI holders can stake (lock up) their coins with a validator, and validators with more stake get more say in agreeing on the order of transactions.
What is it used for?
Sui is a general-purpose platform, so its uses depend on the apps people build on it.
- Paying gas, the small fee charged for each transaction on Sui
- Staking with validators to help secure the network and earn rewards
- Voting on certain network decisions
- Using decentralized finance (DeFi) apps, games and digital collectibles built on Sui
Key facts
- Mainnet launched: 2023
- Built by: Mysten Labs, supported by the Sui Foundation
- Consensus: delegated proof of stake
- Native blockchain: Sui (layer 1)
- Supply: capped at 10 billion SUI, released into circulation over time
Explainer written by Finvane from official project documentation. It is not investment advice.