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This is the third article in our series on the Sui blockchain project. If you have not read the previous articles, we highly recommend you to take a look at Sui - Explainer and From Code to Consensus: Next-Level Tech Innovations of SUI Blockchain for a complete picture.
Introduction
May 2023 marked an important moment in the blockchain universe with the launch of the Sui network. Starting even before the launch, the project attracted a lot of attention from developers and as a result, just four days after, on May 7, 2023, the first record total value (TVL) of $36 million was achieved. At the time of writing, the TVL is over $236 million, indicating that there are a variety of assets locked in various DeFi protocols on the Sui network.
In a recent report, the Sui team stated that the network has reached 9 million active accounts as of November 27, 2023, which gives an indication of the growth and user activity.
The Sui ecosystem currently has hundreds projects demonstrating the platform's appeal for DeFi, gaming, NFT and other applications. As we dive into the Sui ecosystem, we will take a comprehensive look at different aspects of the ecosystem.
Brief intro
For those who are not familiar with the Sui project and haven't read our previous articles, let's take a quick look at the features of this project.
Launched in May 2023, by the innovative minds at Mysten Labs, Sui demonstrates an object-oriented data model that fundamentally changes the norms of blockchain architecture. This model allows for seamless parallelization of transactions, increasing scalability and reducing complexity. In a landscape dominated by giants like Ethereum and Solana, Sui holds its ground, promising a convenient experience and a dynamic ecosystem.
Diving deeper, Sui's Move programming language takes center stage. It's not just a language, it's a paradigm shift. By treating everything as an object, Move simplifies the development of smart contracts while providing security and flexibility. Its unique consensus mechanism, combining DAG and Byzantine consistency, puts Sui in the league of high-performance blockchain solutions.
Sui's economy relies on DPos (Delegeted-Proof-of-Stake) consensus and the SUI token. Beyond transactions, it fuels smart contracts, guides governance, and incentivizes validators with staking rewards.
Since interactions on the Sui network are closely tied to the SUI token, let's explore where and how to store tokens, exchange them, and profit from token staking.
Where to hold SUI
There are already a variety of different wallets in Sui's ecosystem with unique features that can be utilized depending on the user's goals.
To immerse yourself in the Sui ecosystem, you can use one of the 15 wallets featured in the Sui Directory, each of which goes beyond basic token storage. These wallets offer a variety of functionality, from NFT minting, token staking, to exploring and interacting with decentralized applications.
For example, Multi-sig wallet Surf allows setting team approvals for building shared treasury ownership. Users are able to interact with NFT and all popular applications through simple authorization without the need for seed-phrases. In turn, Ethos Wallet as a browser extension, goes beyond its competitors by supporting NFT browsing, built-in applications that can be interacted without leaving its boundaries. In addition, Ethos recently has integrated ZK Login, which allows easy authorization via Web2 services. Or you can choose the popular multi-currency wallet Bitget (formerly BitKeep), with over 12 million users worldwide, operating 90+ blockchain networks and 20,000+ applications with NFT support and asset exchange capabilities, as well as being available in over 15 languages.
You can select any wallet that suits your interests and goals, and here we will review native Sui Wallet from Mysten Labs team with a little guide of wallet registration and staking features.
Review Sui Wallet
Sui Wallet makes it easy for you to:
- Create and use multiple Sui accounts (addresses)
- Receive, exchange and transfer digital assets
- Browse your assets, tokens, and NFTs
- Track your transaction history in Sui Explorer
- Receive additional profits from staking
- Interact with DeFi, GameFi and other applications
- Import private keys from other wallets
We have chosen this wallet as a basic and simple to understand functionality. Let's start with a quick installation and creation of a new wallet.
Since Sui Wallet is a browser extension, you will need a Chrome browser. In the Sui Directory, select the wallet and click the button that goes to the wallet's website. This will take you to the browser extension page in the Chrome Web Store. Alternatively, you can go directly to the Chrome Web Store and type "Sui Wallet" in the search.
Then click "Add to Chrome".
After installing the extension, the interface will show a welcome wallet window and options for registration. You can choose between simple account registration using Google Id or Twitch, or, by clicking on the "More Options" button, you can get options for connecting to Ledger, creating a new wallet or importing an existing wallet (using a seed-phrase or private key).
Today we will consider the basic creation of an account without connection to third-party services. To do this, click "More Options" and "Create a new Passphrase Account".
On the Wallet Setup Page you will need to set up a strong and secure password, then confirm it, activate Auto-lock for inactive period, if needed, and confirm your agreement to the Terms of Services.
After that you will see that wallet successfully created and page is showing !!!Recovery Phrase. Rewrite all the words in strict order and store in a safe place inaccessible to others.
This is a really important thing! In case you lose access to the established wallet, you will be able to restore access to your assets using this seed-phrase.
After everything is completed, just press button "Open Sui Wallet".
In the next wallet window you will see your Account, Wallet address and SUI balance, as well as a panel at the bottom with tabs "Coins", "Assets", "Apps", "Activity". The wallet allows you to create and edit multiple accounts as well, this can be convenient for interacting with different types of apps.
For balance deposit, you can either transfer SUI tokens from another account or buy them with your card. To do this, click on the "Buy" button as shown in the screen.
How to buy SUI tokens
Presently, there are two providers available for token purchases: Transak and Banxa. Both providers support Visa/Mastercard, however, Transak offers SEPA payments and the possibility to pay via Google Pay/Apple Pay, which may be more convenient.
You will also have all the payment and commission information available to you. Select payment provider, enter the sum you want to pay for SUI tokens, specify the payment method and click "Buy Now".
Besides simply holding the tokens, you are able to earn passive income trough staking. Now that you have purchased SUI tokens, let's let them work for you.
How to Stake SUI
The SUI staking is a wise move that offers benefits such as generating passive income, contributing to the security of the network, influencing the direction of the Sui ecosystem through voting. It's not just about rewards, but about actively participating in shaping Sui's future and supporting a sustainable approach to blockchain technology.
In order to stake, make sure you have SUI tokens in your account.
Then click the "Stake and Earn SUI" button.
You'll get a list of all validators in the Sui network, which can be sorted by different parameters for easy search. Find and Select the validator with the nickname "Dankuzone_w_DAIC" and click "Select Amount".
At the next step, you will see all the information about the selected validator: Annual Percentage Yield, percentage of stake share, total amount of delegated tokens. By experience, the more stakes a validator has, the higher the trust in him. This means that he is performing his job in good faith.
Now specify the number of tokens you want to delegate to the validator and click "Stake Now".
In the next window, you will receive a confirmation of the transaction and staking.
Congratulations! You have successfully completed all the steps: wallet setup, token purchases and staking!
It will be useful to know that there are no limits such as the minimum amount that can be delegated or the minimum period for staking. You are free to change the validator or withdraw SUI at the end of each epoch. No maximum staking duration for validation as well.
Note that you must pay a gas fee in SUI tokens when performing staking.
If you have any questions or need more information, here is the Sui Wallet FAQ section.
Sui Wallet Dapps
If you still have some tokens left in your wallet, you can explore the apps that are integrated in Sui Wallet. At the bottom of the window you'll see a panel with tabs, click on the "Apps" tab.
The wallet doesn't boast a large list of DeFi or Games yet, but the top Sui projects are available here: Navi (liquidity protocol), Scallop (lending), Wormhole Connect (exchange bridge), Cetus Protocol (DEX), Aftermath Finance (DeFi) and others. Among the games: SUI 8192, DeSui Coinflip, Poetry in Motion, SuiFrens, Bullshark Quests and Suilette.
Exchanges and Trading
In addition to the way of buying SUI tokens that we have already explored, you may purchase and exchange them on most popular exchanges - Binance, OKX, HTX, Bybit, KuCoin, Gate.io and other. According to CoinMarketCap, SUI tokens are traded on more than 60 exchanges.
Before choosing an exchange, it is important to do research and compare features, limits, commissions, and supported currencies, as there are significant differences between each of them.
Binance is the largest and most liquid exchange worldwide, offering a wide range of features such as margin trading, crypto futures, staking platforms and NFT features. Kraken, famous for its longevity and security, is suitable for buy-and-hold strategies, but offers slightly higher commissions compared to other platforms. OKX centers on trading cryptocurrency futures, while Bybit has gained popularity among yield enthusiasts. Gate.io serves over 10 million customers in 130+ countries. MEXC stands out with user-friendly features and near 0% commission for spot and futures.
Real-Life Applications of Sui Blockchain
As the SUI Blockchain emerges as a prominent player in the Web3 technology landscape, it showcases a versatile range of practical and groundbreaking applications across diverse sectors. And you can use your SUI tokens in a variety of services and applications in the Sui ecosystem.
Gaming Industry
SUI is rapidly gaining ground in the gaming industry, with its innovative "object-oriented" model, which is highly suitable for game development and in-game object creation.
This approach is useful for game developers on engines like Unity or Unreal Engine 5, as it allows seamless advancement of in-game NFT assets and improves the overall players’ experience. In addition, Sui offers a sponsored transactions feature that removes the burden of gas fees from users and the ability to integrate zkLogin, allowing secure authorization with no need for private keys or seed-phrases.
Presently, more than 40 games in the SUI gaming ecosystem, including Abyss World an exciting fantasy adventure and Run Legends a game that actively promotes healthy lifestyles through games. Some of these games may be found on Sui Directory.
Moreover, Mysten Labs has launched Play Beyond, a gaming portal that aims to bring together blockchain games available on Sui. This gaming hub is not only oriented at gamers, but is also intended to be a valuable resource for developers willing to explore the world of blockchain gaming. The Play Beyond already includes games like Star Garden (auto battler), Grand Cross (MetaWorld), Legend of Arcadia (strategy card game), Panzerdogs (tank battler), The Walking Dead Lands (post-apocalyptic open world) and Samurai Shodown (fighting game).
NFT Landscape
NFT collections play an important role in the Sui ecosystem, bringing excitement and intrigue to the community and opening up a wide range of opportunities for collectors and investors.
For instance, recently, Formula 1 racing team Oracle Red Bull released a collection of digital collectibles on Sui network for its fans in celebration of a strong showing in the 2023 season.
Maintaining the NFT trend, Sui offers an entire infrastructure for creators, collectors, and investors, enabling them to interact with NFT on many levels. From art and digital fashion to immersive gaming, these platforms demonstrate Sui's versatility in supporting creative endeavors.
Speaking about the technical side of Sui, the hybrid consensus approach enables the Sui network to handle increased loads and high demand easily during NFT token minting, while Solana and Ethereum encountered network problems.
Transactions like NFT mass minting are separated from transactions related to DeFi activity. They bypass consensus, freeing up validator resources for DeFi, providing a stable environment for processing DeFi transactions.
DeFi Market
DeFi services within the Sui ecosystem utilize the network's distinctive transaction processing model, allowing for higher throughput compared to other blockchains. This means more DeFi activity per second, with faster transaction finalization, minimizing the risk of delays for users in volatile markets.
Sui's commitment to low and predictable gas fees ensures cost-effectiveness for each DeFi transaction, setting it apart from other chains.
For now, Sui hosts over 20 DeFi protocols, encompassing decentralized exchanges (DEXes) and lending services, with many featured on DeFi Llama.
DEX Cetus is the largest protocol based on TVL. KriyaDEX, FlowX Finance, Turbos, and Aftermath are other popular liquidity DEXs on Sui.
Yield projects like Mole, lending platforms such as NAVI Protocol and Scallop are leading projects in the Sui ecosystem.
While DEXes facilitate token trading, lending services simplify borrowing or lending at predetermined interest rates. Beyond these core functionalities, each DeFi protocol on Sui brings specific and often unique features, enhancing the overall user experience.
In addition to these fields, Sui's potential extends to other areas such as supply chain management, decentralized data storage and digital identity verification.
In a recent collaboration, Sui and Fils have joined forces to solve carbon emissions. Sui's blockchain will serve for tracking carbon credits in the Fils ecosystem.
Sui's diverse use cases for blockchain underscore its ability to revolutionize myriad aspects across a variety of fields, establishing itself as a key player in the ongoing Web3 revolution.
Conclusion
Having walked with you through a detailed exploration of Sui as a technology and platform, we can now conclude that the project is at the forefront of Web3, bringing innovations that have the potential to transform the decentralized landscape.
It’s worth noting that other projects are not behind the scene. Their solutions may not be perfect and may look outdated, but in such diversity new ideas arise, and therefore it is a reason to always keep an eye on them.
