Innovation and development are ongoing in the blockchain world, with new technologies being developed to connect different public and private ecosystems. One such innovation is ZetaChain’s integration with Sui — a high-performance, layer-1 blockchain technology engineered for maximum scalability and a revolutionary object-centric paradigm. This integration unlocks native Bitcoin (BTC) utility on Sui. It’s set to unlock new possibilities for decentralized finance (DeFi) and attract new users and capital to the Sui ecosystem.

What is ZetaChain and Why Does It Matter?

ZetaChain is a unique, cosmopolitan L1 blockchain that supercharges omnichain smart contracts. It opens the door to easy connections and interactions with other blockchains like Bitcoin, Ethereum and Solana. That’s because the key innovation is what really frees direct native BTC utility. Users will be able to use Bitcoin natively to swap, lend and borrow, without needing to depend on wrapped tokens. This is a major departure from the typical, outdated approach. Users no longer have to wrap their BTC into some other token like wBTC, removing additional risk and complexity from the equation.

ZetaChain facilitates seamless asset transfers and cross-chain smart contract calls from one place, eliminating the need for separate bridging protocols. Now, any Sui users can seamlessly interact with applications on Bitcoin, Ethereum, Solana, and beyond. This native interoperability removes the need to change wallets or gas tokens. For Sui developers, this unlocks access to native liquidity, users, and apps across the entire Web3 ecosystem from a single L1 platform. The integration unlocks true revenue-generating use cases, like lending BTC and yield aggregation. Investors can finally access new exciting opportunities to earn yield on Sui without ever having to move their native BTC from the Bitcoin network. Moreover, Sui holders will have the simple and secure option to swap their native SUI for native Bitcoin in a single click.

How ZetaChain Integration Impacts Sui

TVL and User Base

With ZetaChain’s expansion and deep liquidity integration to Sui, it could potentially double Sui’s TVL. This new move will bring a ton of new users to the platform. ZetaChain allows users to swap, lend and borrow Bitcoin natively on the platform. That opens up thrilling new opportunities to interact with the wider BTC ecosystem. This is great news for self-custodial bitcoin holders! It provides them with an easier on-ramp to leverage their assets in DeFi without needing the burden of wrapped tokens.

This integration could unlock "new TVL and user flows" into the Sui ecosystem, particularly through Universal Apps like Zuno (a cross-chain DEX) and Amana (a yield aggregator). ZetaChain's integration with Sui could bring real capital flows and application-level traction from native Bitcoin, which could increase Sui's TVL. This is due to the fact that users are now able to earn yield on Sui from native BTC stored directly on the Bitcoin network. All of these efforts will together create a real pipeline of capital flows into the Sui ecosystem which should have very positive impacts on Sui’s TVL.

Bitcoin Utility and DeFi Expansion

Of all the exciting features included in this integration, we think increasing Bitcoin utility is one of the coolest. With Sui, Bitcoin can now be integrated natively across DeFi to be used for lending, staking, and leveraged trading. This expansion allows users to earn rewards and participate in DeFi with their Bitcoin, all without the need for centralized intermediaries. This new versatility of Bitcoin could lure tons of new users and capital into the Sui ecosystem.

Sui vs. Solana: A Layer-1 Comparison

While Sui and Solana are both Layer-1 blockchains, their architectures and philosophies towards scalability and ecosystem development diverge significantly. Whether you’re an investor or a DeFi user, understanding these differences will be key to your success.

Scalability

To achieve horizontal scalability though, Sui divides transactions into simples and complex, allowing simples to skip consensus entirely. It claims to handle high transaction throughput. Solana uses Proof-of-Stake (PoS) and introduces a unique consensus mechanism based on Proof-of-History (PoH) and is capable of processing 65,000 transactions per second (TPS). Solana has a hybrid consensus mechanism, processing thousands of transactions per second (TPS) with block times as low as 400 milliseconds. Sui, for example, provides 400ms block times and 2.5-second finality.

Ecosystem Size and User Engagement

In comparison, Solana’s ecosystem is broader and deeper, boasting the network of more than 3,000 developers. Further, it boasts one of the most active ecosystems of decentralized applications—from DeFi protocols to NFT projects to Web3 initiatives. While Sui’s ecosystem, unique user count, and total value locked (TVL) are all larger than Solana’s, they’re not all that much larger than Solana’s. It has a newer, smaller, more agile community of a few hundred active developers. In comparison, Solana is currently secured by roughly 1,500 validators located across 40+ countries. In contrast, Sui uses around 100 permissioned validators for its security.

Developer Base and Documentation

To compete, Solana now has more than 3,000 developers active, and much deeper documentation. Sui also boasts a fast-growing community of several hundred active developers, with English-language documentation readily available.

Key Differences

Here's a summary of the key differences between Sui and Solana:

  • Scalability: Sui uses object-centric model, while Solana uses PoS and PoH.
  • Ecosystem: Solana has a larger and more established ecosystem.
  • Developers: Solana has a larger developer base with more extensive documentation.
  • Validators: Solana has more validators operating across more countries

Conclusion

This week, ZetaChain made a big splash by deploying on Sui. This integration does an excellent job of bridging Bitcoin to the broader DeFi landscape. Providing access to native Bitcoin utility directly on Sui is certain to bring new users and capital to the platform. This integration will further increase its TVL and increase Bitcoin’s use cases in DeFi. Unlike Solana, Sui is a relative newcomer to the Layer-1 scene. Its unique architecture and growing ecosystem make it an exciting platform to shape future innovation.