Mysten Labs, the original contributor to the Sui blockchain, partnered with Druk Holding and Investments Ltd. to explore whether blockchain transactions could function without continuous internet access. The initiative was led by DHI’s Innotech Department and focused on determining whether decentralized networks could remain operational in regions facing weak or nonexistent connectivity.
Bhutan was selected as the testing ground due to its challenging terrain. The country’s mountainous geography frequently disrupts communication signals, particularly in remote locations. Rather than viewing these limitations as obstacles, the teams treated them as ideal conditions for experimentation. The objective was to assess how blockchain infrastructure could adapt to real-world environments where connectivity cannot be guaranteed.
Offline Signing and Physical Data Transfer
The project tested a transaction flow built around an offline-first concept. Sensors were deployed to gather environmental data, including temperature and humidity. This information was signed locally without any internet connection. Once signed, the data was physically transported by drones to areas with stable connectivity.
After reaching connected locations, the data was verified and recorded on the Sui blockchain. This approach demonstrated that blockchain transactions do not necessarily require constant online access at every stage. The successful validation confirmed that data integrity and on-chain verification could still be maintained despite offline conditions.
Why Sui Fit the Experiment
Sui’s technical design played a critical role in the trial. As a Layer 1 blockchain built for practical applications, Sui offers rapid transaction confirmation and predictable, low fees. These characteristics made it well-suited for an experiment focused on efficiency and reliability under constrained conditions.
Mountains, drones, no internet, still onchain.
Bhutan’s DHI InnoTech + @Mysten_Labs built ByteCrane, a PoC that lets IoT devices send signed, tamper-proof data to Sui from fully offline environments.
Frontier engineering, tested in the Himalayas.
Learn more 👇… pic.twitter.com/FskVUYQygM
— Sui (@SuiNetwork) December 17, 2025
The team relied on ESP32 microcontrollers running MicroSui to sign and prepare transactions. These compact, low-power devices showed that Sui can integrate effectively with lightweight hardware, expanding its usability in environments where advanced infrastructure is unavailable.
Offline doesn’t mean unverifiable.
ByteCrane shows what happens when you design for reality, not perfect connectivity. Signed offline, relayed by drones, verified on Sui.
This is what resilient blockchain infrastructure actually looks like. https://t.co/D7tZtJpZMw
— MystenLabs.sui (@Mysten_Labs) December 17, 2025
Collaboration With Local and Global Impact
According to DHI’s Innotech leadership, the project relied on close collaboration between international blockchain specialists and local Bhutanese engineers. The team emphasized that addressing region-specific challenges can generate solutions with global relevance. By solving problems encountered in Bhutan, the initiative highlighted use cases applicable to other underserved or remote regions worldwide.
The SEC has approved the first-ever 2x leveraged SUI ETF (TXXS), live on Nasdaq via @21shares_us.
A first for Sui in public markets – offering amplified, regulated exposure to SUI.
A new chapter for Sui investing begins. pic.twitter.com/y6h4gqMlnP
— Sui (@SuiNetwork) December 4, 2025
Mysten Labs leadership echoed this view, emphasizing that a truly global blockchain must operate reliably regardless of connectivity conditions. The pilot reinforced the idea that decentralization should not be limited by geography or infrastructure gaps.
wBTC is now crosschain ready on Sui ⚡️@BitGo is bringing native WBTC to Sui through @LayerZero_Core, giving it instant movement across ecosystems with gas only fees and no wrappers.
Clean, fast, native BTC liquidity. pic.twitter.com/ijVZumU7ut
— Sui (@SuiNetwork) December 5, 2025
Real-World Applications and Broader Significance
While Bhutan has embraced digital innovation, its physical landscape presents ongoing challenges. The pilot illustrated how blockchain systems like Sui can adapt to such realities. As testing continues, the findings suggest that blockchain could support practical applications such as environmental monitoring, data logging, and secure recordkeeping in hard-to-reach areas. This adaptability represents a meaningful step toward broader blockchain inclusion.
Expanding Momentum for Sui
The collaboration with DHI aligns with broader growth across the Sui ecosystem. The network has gained notable traction and is increasingly viewed as a strong contender heading into 2026.
Regulatory progress has also accelerated. The US Securities and Exchange Commission has approved the first leveraged exchange-traded fund tied to SUI, a 2x product listed on Nasdaq through 21Shares US. This launch marked Sui’s initial entry into public markets and provided investors with a regulated option for amplified exposure.
In parallel, Sui has expanded its Bitcoin integration. Wrapped Bitcoin is now cross-chain enabled, with BitGo and LayerZero facilitating native Bitcoin movement onto the network. This development allows efficient, low-fee BTC liquidity without relying on complex wrappers.
Institutional interest continues to rise as well. Grayscale has filed an S-1 registration for a Sui Trust designed to track SUI’s price performance after fees. The proposed product would offer long-term investors a regulated pathway to gain exposure without directly holding the token.