06/13/24

Altcoin Spotlight: What is Sui? (SUI)

The purpose of our altcoin spotlight articles is to bring attention to cryptocurrencies currently in the top 50 on Coinmarketcap. These articles are meant to be informative, sometimes pointing out when a cryptocurrency isn’t everything it appears to be at first glance.

This week, we are discussing Sui (SUI), a relatively new cryptocurrency project that has only been around for about a year. If you are interested in learning more about this cryptocurrency, keep reading.

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What is Sui?

Sui is a layer-one blockchain that was invented to help bridge the gap between Web2 and Web3 technologies. As a layer one blockchain, Sui functions similarly to Ethereum and Bitcoin, processing transactions and allowing for the building of Dapps on its platform.

Sui is a direct competitor to Ethereum, Solana, Cosmos, and many other blockchains in the space. It boasts faster processing speeds, ease of use, and compatibility with many applications across the DeFi and gaming spaces. Sui additionally offers stable transaction fees, meaning they aren’t set by supply and demand as they are on most blockchains.

How Does Sui Work?

Sui is able to promote fast processing speeds due to the fact that it offers parallel processing. This means that multiple transactions are able to be processed on the blockchain at the same time. In most of the articles it is mentioned that the blockchain can do this due to a unique consensus mechanism, but that mechanism isn’t ever fully specified.

We surmise that the parallel processing is due to the use of a proof of identity or similar consensus mechanism, meaning the blockchain is probably almost fully centralized, and those who use it regularly or create for it are given faster processing speeds. This is further our thoughts as many websites state that “Sui has unique consensus requirements that allow specific transactions to actually bypass consensus.”(CoinMarket Cap), which leads us to believe that certain privileged users are given the ability to enjoy the faster processing speeds by a central authority. While this hasn’t been confirmed, we will explain why we believe this to be the case in the next section.

Currently, Sui runs on a Move programming language, which is derived from Rust programming language but developed specifically for use in programming Meta platforms. This programming language includes the specific ability to designate objects on the platform, which increases the overall speed while also making the platform easy to use in conjunction with other platforms.

Who Created Sui?

Sui was created by Mysten Labs, which is run by Meta. Yep, the social media giant has fully funded and overseen the creation of this blockchain project. The main contributors to the project are Evan Cheng, Adeniyi Abiodun, Sam Blackshear, George Danezis, and Kostas Chalkias. All of these individuals have worked on the engineering of Meta platforms for several years.

Basically, Sui is a project for Meta by Meta. Though it does have some outside investors, much of the money for research and development came from the social media giant. This project was launched in May 2023 and saw impressive success just over one year later. As of the writing of this article, one SUI token costs about $1 USD.

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Where Can You Buy Sui?

Sui is available for purchase on most centralized exchanges. Below is a basic list, but know that the coin may be available for purchase in additional unlisted locations:

· Binance

· Coinbase

· KuCoin

· ByBit

· Kraken

· Bitfinex

Should You Buy Sui?

Here at MintDice.com, we have long believed in cryptocurrency as decentralized money, with the ability to give the power of finance back to the people. That being said, we do not recommend an investment in Sui for several reasons.

Sui, first and foremost, seems to be a centralized version of blockchain. It is fully, and wholly owned by Meta, and we believe this corporation could pull the rug out at any time. While they are more trustworthy than some blockchains, this is a serious concern as your investment could go up in smoke at any moment.

Secondly, the purpose of cryptocurrency is to even the playing field, allowing everyone around the globe safe and secure access to financial services through blockchain. The Sui project is directly against that, as individuals using the blockchain will be given the ability to bypass consensus—and how it is decided who these people are is not well explained.

We are sure, since it is developed by Meta, that this cryptocurrency will gain traction even though it is a bit repetitive—performing the same tasks as other blockchains on the market. Even though this is the case, we don’t believe that an investment in such a project is safe, mostly because there is no information on the exact consensus mechanism used and how to gain access to the faster processing speeds as an individual developer.

Thirdly, Meta is one of the largest data sales platforms in the world, and we aren’t sure that the data used to maintain an account on SUI will remain private, nor do we trust that the transactions executed on the platform won’t be turned into the US government upon request.

Of course, if you love and support Meta and enjoy how the platform operates, then there is no reason not to invest in SUI. But from a decentralized, open-source, freedom of cryptocurrency point of view, this is not an investment that we think true fans of cryptocurrency should support.

From a financial standpoint, we must admit that an investment in Sui purely for financial gain might be worthwhile and safer than in other cryptocurrencies. So, you’ll have to consider the risks and make your own choice with this one.

Overall, Sui is a newer blockchain project that has been wholly funded and developed by Meta. While it does boast a myriad of nice features, know that the ability to use these features may not be the same across the board. We recommend using or buying Sui with caution and discussing it with a financial advisor or someone you trust before doing so.

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