Although the blockchain industry has only existed for less than 20 years, its current landscape may already seem quite mature to some with well-established major tokens like Bitcoin, Ethereum, and Solana. Amongst other layer 1 blockchain technologies like Avalanche, Near, and Aptos, it seemed that the scalability niche had already been well saturated. However, one newer entrant has burst onto the scene and firmly established itself as a well-planned project and thriving ecosystem. Sui is a layer one blockchain that launched less than 2 years ago, in May 2023. Yet at time of writing, it’s already currently ranked as the 12th largest crypto project in the world by market capitalization. So what exactly makes Sui such a strong contender amongst the sea of other layer 1 networks?
Overview of Sui
Sui is developed by Mysten Labs, a company founded by former Facebook engineers who previously worked on the Diem blockchain and the Move programming language. The team is backed by some of Silicon Valley’s top venture capital firms such as Andreessen Horowitz (a16z), and began fundraising in December 2021. The SUI token was launched in April 2023 followed by its official mainnet the following month in May.
The Sui blockchain is designed to optimize for low-latency and high-speed blockchain transactions. It achieves horizontal scaling through a process called "transaction parallelization," which allows multiple independent transactions to be validated simultaneously by Sui nodes. These transactions are organized as independent objects and validated using a Byzantine fault-tolerant proof-of-stake (PoS) consensus mechanism.
Sui’s focus on enabling instant finality in transactions and high transaction throughput makes it ideal for various on-chain applications such as games, finance, and other real-time use cases. Smart contracts on Sui are developed using Move, a Rust-based programming language that prioritizes fast and secure transaction execution.
What Sets Sui Apart
Sui distinguishes itself from other blockchains through its unique consensus and transaction processing mechanisms. Traditional blockchains often have validators sequentially add transactions to the chain, which limits scalability and speed due to the need for incremental, linear additions (also known as “vertical scaling”). Sui adopts a different strategy. Recognizing that many transactions are not causally linked, Sui avoids requiring every transaction to be validated by all network nodes. Instead, it focuses only on the relevant data, bypassing the need to validate the entire chain.
To achieve this efficiently, Sui employs an object-centric data model, shifting the focus from account-based storage to object-based storage. This innovative approach enables Sui nodes to validate unrelated transaction flows independently and in parallel, eliminating the need to order all transactions sequentially like on most other layer 1 blockchains. It has also allowed Sui to boast an impressive transaction throughput of over 100,000 transactions per second.
Consensus Mechanism
Sui employs a Directed Acyclic Graph (DAG)-based consensus model that emphasizes scalability and heightened security. Unlike conventional blockchains that depend on rigid linear transaction ordering, Sui’s Narwhal & Bullshark protocols enable a more adaptable and efficient validation process. This consensus mechanism allows Sui to achieve sub-second finality, meaning transactions are confirmed nearly instantly, which can lead to enhanced user experience on use cases like payments and real-time gaming.
Object-Centric Model
Sui reimagines on-chain assets as objects instead of accounts. This approach streamlines the structure of data and crypto assets on the blockchain, removing the need for the intricate storage systems typical of traditional blockchains. This object-centric model is particularly well-suited for NFTs, tokenized assets, and digital gaming items, as it enhances the efficiency of storing, retrieving, and managing assets. Additionally, it minimizes computational overhead and improves programmability by simplifying the development and interaction process for dApps.
Sui’s Recent Developments and Outlook
The SUI ecosystem is experiencing significant growth and on January 24th exceeded 50 million registered accounts. This milestone underscores its swift adoption and rising user engagement. For blockchain projects, a growing user base is a vital indicator, as it typically drives higher transaction activity and boosts demand for the native token. As SUI’s user base grows, it can lead to increased developer interest, which in turn strengthens the blockchain’s functionality and decentralized application diversity.
Despite its impressive growth, Sui recently faced a significant security breach on January 29, 2025 which resulted in the theft of $29 million worth of SUI tokens. This breach underscores critical concerns about blockchain security, especially for newer networks like Sui. The incident exposes the risks emerging projects encounter as they expand, and the challenge of tracking stolen funds further amplifies the issue. SUI’s development team has recognized the breach and committed to strengthening its security measures. How effectively the network addresses these vulnerabilities will play a pivotal role in preserving investor trust moving forward.
Overall, Sui’s immense throughput and near instant finality make it an optimal blockchain for Web3 gaming. It has already emerged as a frontrunner in Web3 gaming due to its high-speed infrastructure and the Move programming language. With more than 65 gaming studios developing on SUI and 70 new games slated for release in 2025, the project is solidifying its position as a key player for the future of blockchain gaming.
Register to get $180 Welcome Bonus!
