The blockchain landscape is constantly evolving, with new platforms emerging to address scalability, cost, and user experience (UX) challenges.
Among these innovations, Sui, developed by Mysten Labs, has quickly gained recognition as a groundbreaking Layer-1 blockchain. Leveraging novel design principles and advanced technology, Sui aims to deliver unmatched scalability, low transaction costs, and developer-friendly infrastructure.
This guide offers an in-depth exploration of the Sui blockchain—its unique features, key use cases, and how it compares to other leading platforms such as Ethereum and Solana.
What is Sui?
Sui is a Layer-1 blockchain developed by a team of former Meta engineers who contributed to Diem.
Diem, initially known as Libra, was Meta's attempt to create a global digital currency and payment system. However, regulatory challenges led to Diem's discontinuation. Subsequently, Evan Cheng, Sam Blackshear, Adeniyi Abiodun, George Danezis, and Kostas Chalkias leveraged their expertise from Diem to establish Mysten Labs.
Their goal? Address the scalability and performance limitations they encountered during the Diem project. This initiative resulted in the creation of Sui. Officially launched in 2023, Sui’s primary goal is to redefine scalability, simplicity, and user experience in the onchain economy.
At its core, Sui allows parallel transaction execution, significantly increasing throughput and reducing congestion. Sui also prioritizes low fees and predictable performance, making it ideal for finance and gaming applications requiring high-frequency, low-cost transactions.
Sui vs Ethereum vs Solana
While Ethereum remains the most established blockchain, its low transaction speed and high fees make it less suitable for certain applications, particularly onchain payments and gaming.
Both Solana and Sui present compelling alternatives, particularly for applications that demand high performance. Their low transaction costs further enhance their appeal, enabling microtransactions and frequent interactions without burdening users with high fees.
These features position both blockchains as frontrunners for developers and businesses seeking to optimize performance without compromising affordability. As the demand for scalable, low-cost blockchain solutions grows, Solana and Sui are well-poised to play pivotal roles in shaping the future of decentralized applications (dapps).
Most prominent applications on Sui
Suilend
Suilend is a decentralized lending and borrowing platform built on the SUI blockchain. It enables users to lend their crypto assets to earn interest or borrow against their holdings.
NAVI
NAVI provides a comprehensive suite of decentralized finance(DeFi) services designed to enhance liquidity management. These include lending and borrowing capabilities, leveraged yield farming opportunities, and isolated liquidity pools that enable users to mitigate risks while optimizing returns.
Cetus
Cetus is a decentralized exchange (DEX) that offers liquidity pools and token swaps. Its design focuses on providing users with low slippage and minimal fees when trading.
Haedal
Haedal is a liquid staking protocol that enables users to stake their SUI tokens while maintaining liquidity. By leveraging Haedal, users can earn staking rewards without locking their assets, as they receive liquid staking derivatives that can be used across Sui's DeFi landscape.
Hurdles ahead for SUI
Although SUI has made significant strides, the network is not without challenges.
Adoption hurdles: Sui, despite its innovative features and high performance, faces significant challenges in attracting developers and users within the competitive blockchain space. Established platforms such as Ethereum and Solana have built large, loyal communities and robust ecosystems, making it difficult for newcomers to capture attention. To overcome this, Sui must showcase its unique advantages, such as its object-centric model and high scalability, while offering incentives such as developer grants, hackathons, and comprehensive tooling to lower the barrier to entry for new projects.
Ecosystem growth: A thriving ecosystem of platforms and applications is essential for Sui's success. This includes a diverse range of payment solutions, DeFi applications, and gaming platforms. The network must also foster partnerships with enterprises and infrastructure providers to build out wallets and developer tools. A dynamic and expanding ecosystem not only attracts developers but also drives user adoption, creating a virtuous cycle of growth.
Regulatory uncertainty: Operating in an ever-changing regulatory landscape presents challenges for Sui, as governments worldwide introduce new laws and policies targeting blockchain technology. Sui's ability to adapt to these regulations while maintaining its core functionality will be crucial for building trust among institutions, developers, and users. Proactively engaging with regulators and adhering to compliance requirements can mitigate these risks, enabling Sui to position itself as a trustworthy and forward-thinking platform.
Regardless, Sui is poised to become a significant player in the onchain economy, especially regarding use cases requiring high-speed, low-cost transactions. Its innovative design, coupled with the expertise of Mysten Labs, gives it a strong foundation for long-term success.
As the onchain ecosystem grows and more developers build on the platform, Sui has the potential to reshape industries ranging from finance to gaming. If it continues to address challenges and capitalize on opportunities, Sui could become a leading benchmark for scalability and user-centric blockchain design.
How to trade SUI tokens with Phantom?
Currently, Phantom does not support the SUI blockchain, meaning you cannot use the wallet to buy the native SUI token or any other tokens launched on the Sui network. While this functionality isn’t available yet, it's in the process of being integrated.
In the meantime, if you’re interested in trading the SUI token i.e. going long or short, you can explore Solana-based DeFi platforms such as DRIFT. These platforms provide a seamless way to trade Sui and take advantage of market opportunities while Phantom’s Sui integration is pending.
How to get started with SUI and Phantom
Phantom is working on adding support for the SUI blockchain.
Stay in the loop with the latest updates by downloading the Phantom app or installing the Phantom browser extension today. By doing so, you’ll gain instant access to important features and announcements, ensuring you’re always ahead of the curve.
Also, don’t forget to follow us on 𝕏 for real-time news and updates about our Sui-related developments. You don't want to miss it.
Disclaimer: This guide is strictly for educational purposes only and doesn’t constitute financial or legal advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.
