Two years later, the Aptos blockchain network has reached major milestones. How is this crypto project doing now? We updated a guide with a deep dive into the Aptos (APT) to introduce this promising player.
Key Takeaways
- Aptos blockchain is using the basis developed during the Diem project at Meta. It uses a Rust-based programming language Move that closes the security loopholes of its predecessors;
- Its architecture splits consensus and computing, making a transaction process pipelined, which increases the throughput of Aptos, theoretically up to 130,000 TPS;
- Aptos raised $4B from VCs before launch and early into its production. This helped the Aptos project build an ecosystem of two and a half hundred apps and games in two years.
Aptos Blockchain and How It Works
The Aptos blockchain platform came as a result of the contemporary blockchains being insufficiently stable, scalable, and cost-efficient. Its developers aim to make Aptos scalable, secure, reliable, and upgradeable to enable Web3 infrastructure.
To make Aptos scalable and stable, different parts of the transaction processing pipeline are delegated to different actors, and so, performed in parallel, regardless of the transaction’s complexity.
Transaction dissemination (broadcasting) is done separately from consensus in the Aptos network. Compare this to Bitcoin and Ethereum, where a transaction is broadcast to all nodes and checked by the majority of them even before getting into the mempool. Here, the transaction will be immediately forwarded to the client’s node mempool to eventually reach a validator node, and then be proposed for inclusion in the next block.
For security purposes, all applications and smart contracts on Aptos are written in the Move language. The Move programming language uses linear logic semantics and utilizes resource types: in simpler terms, it has special innate precautions for programming.
Safety is further bolstered by the Aptos data model that improves the user experience of signing transactions and managing keys. Accidentally sending the same transaction twice or losing access to an address with necessary precautions is impossible.
Last but not least, Aptos’s upgradeability or modularity is achieved with on-chain change management protocols and a modular architecture. This is supposed to improve the chain’s longevity and remove the need for hard forks.
A Brief History Of Diem and Aptos Labs
You might have heard about Diem and Libra, but if you haven’t, these are the names of blockchain projects by Meta (then Facebook). Libra, later known as Diem, was supposed to be a stablecoin for Facebook, originally slated for release in 2020. Companies and investors like PayPal, eBay, Spotify, Uber and Lyft, Andreessen Horowitz, Thrive Capital, Visa, and Mastercard were on board with the Libra Association. Nevertheless, navigating the regulatory framework proved to be too difficult and no longer feasible, so Meta had to sell the project’s assets in 2022.
As we see from the timeline, it took roughly three years from the creation of Libra to Diem’s sale. This is ample time to develop extensive groundwork and quality solutions in addition to the company assets. And so, a part of the Diem team used some of those — Move, Aptos data model, consensus algorithm — to develop Aptos. Particularly, the talent that envisioned these things and other aspects of Diem and now works on Aptos includes Mo Shaikh and Avery Ching.
The date of the Aptos’ genesis on the mainnet is October 12, 2022. The Aptos blockchain platform is supported by Aptos Labs and Aptos Foundation. The latter works on the development of the blockchain and its protocol, and the former fosters its ecosystem.
What is APT Cryptocurrency?
Diem’s blockchain would have been maintained in a permissioned fashion by the Association, and the stablecoin would have been the only asset supported on it.
The creators of Aptos chose to go with a more common design with a native cryptocurrency token. They changed Diem’s pure BFT consensus specification to a Proof-of-Stake-based one, so naturally, the network needed a unit of value. It’s also called Aptos (APT) and uses the ticker APT.
Here are a few more facts about the token:
| Initial supply | 1B APT |
| Supply | Inflationary |
| Daily active addresses | 654,560 |
| Average real TPS | 108 |
| All-time high Aptos price | $19.90 (January 30, 2023) |
Roughly half of the Aptos (APT) tokens were allocated to contributors, investors, and the Foundation treasury. This half of the total supply is gradually unlocking and entering the current circulating supply, which puts additional pressure on the APT price. At the time of writing, over 50% of the native currency remains locked.
How To Use APT Tokens?
- Use the Aptos platform. APT is needed for network and transaction (gas) fees;
- Spend in the Aptos ecosystem apps. Help launch a startup with SpringX, play Aptos Arena, or trade non-fungible tokens on Rarible;
- Cast votes in the governance process. Issues for voting range from quality-of-life improvements to major protocol changes.
The Aptos Blockchain Network And Similar Projects
Aptos (APT) vs. Solana (SOL)
Aptos’ “Solana killer” label is all but official because its ideal throughput is over a hundred thousand transactions per second. But what is also similar between the two is the technology stack, which leads to cases of developers ditching Solana in favor of Aptos. No doubt, since the former had a head start, it boasts a larger ecosystem at the moment. However, some apps are migrating to Aptos, tired of what the Solana CEO described as “eating glass”.
Aptos (APT) vs. Flow (FLOW)
Another layer-one blockchain Aptos is similar to in purpose and design is Flow. The similarities between the two run deeper than the surface: both utilize the HotStuff consensus algorithm, based on BFT. It lets Flow and Aptos separate consensus from computation.
According to the respective whitepapers, these two platforms utilize their own HotStuff specifications. Aptos’s one, for example, is built upon DiemBFT and relies on Proof-of-availability.
Is Aptos Criticized For Anything?
Despite its unicorn status and setting strong expectations, the mainnet launch of Aptos curbed the high hopes. The network was pitched as being able to process up to 130,000 transactions per second, but the actual TPS was closer to 4. Upon further inspection, even these few transactions turned out to be validators communicating. Not surprising, though: the network has just launched, after all.
Another point of contention, and a more concerning one, was the tokenomics of Aptos (APT). Aside from a private sale to investors and team allocations, the only way to get APT before the launch was to be eligible for an airdrop to testers.
What raised even more suspicion was that both locked and unlocked tokens could be staked. In other words, even though the team’s allocation is initially locked, this share is eligible for staking rewards, which can be sold on exchanges.
What Is The Future Of Aptos (APT)?
Two years is ample time to build a sizeable platform, especially with the backing Aptos Labs received. What have they achieved by now and what plans do they have?
Having started with SDKs and APIs, an official Petra Wallet, and Aptos Name Service, the Aptos ecosystem now has at least 250 apps and products. The network boasts 27.7 million active users who made 1.7 billion transactions.
Among them are institutional giants Franklin Templeton Investments, who built an on-chain money market on the blockchain. A Japanese blockchain platform HashPallette will also unveil their Aptos-based music and art NFT products in Expo 2025.
The ETC Group report highlights the Aptos developer activity as a reason to consider investing in the up-and-coming Ethereum competitor. What is in the kitchen? Formalized proposals include reducing the minimal stake to introduce improvements and multi-sig accounts, among other things.
For the years to come, the team has unveiled a focus on use cases in payments, advertising, loyalty programs, and, of course, decentralized finance (DeFi).
What Wallet to Use for Aptos (APT)?
By now, Aptos (APT) has received extensive support from crypto wallet developers. In addition to Petra Wallet, the APT tokens have a cold storage option in the Ledger and Tangem hardware crypto wallets.
Popular multi-coin free crypto wallets with the support of Aptos (APT) tokens are Exodus and Trust Wallet. They are available on desktop (in a Web browser) and on mobile devices (iOS/Android).
How to Exchange and Buy Aptos (APT) on ChangeHero?
Need a refresher on how swapping crypto on ChangeHero works? We’re here to help:
- Choose the currencies on the home page, amounts, and the type of exchange. Provide your wallet address in the next step and check the details;
- Double-check the provided information, read and accept the Terms of Use and Privacy Policy;
- Send the sum of the cryptocurrency for the swap in a single transaction. In Fixed Rate transaction you have 15 minutes before it expires;
- Sit back and relax. At this step, we are doing all the work: checking the incoming transaction and doing the exchange as soon as it arrives;
- As soon as the exchange has been processed, your APT is on its way to your wallet. And so, the transaction is finished!
If you ever run into any issues during your swap, our support specialists are always available to help you in the chat, official Telegram chat group, or through the email: [email protected].
Conclusion
Aptos started out already promising, and high-profile endorsements even two years later prove it was not just hype. Nevertheless, there is ample room for growth still, and the future of Aptos remains to be seen.
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Frequently Asked Questions
What is Aptos (APT)?
Aptos uses a permissionless design of a Diem blockchain by Meta. Instead of a pre-approved validator set they opted for a Proof-of-Stake-based validator ruleset. Staking can exist only in a decentralized network with an internal unit of accounting, so the Aptos blockchain has a native coin APT.
Is Aptos better than Solana?
The Aptos blockchain is a layer-one smart contract platform. Thanks to separating consensus from computing it is theoretically able to achieve 130,000 tps. Aptos was built with the technology designed for Meta’s blockchain project Diem.
What is Aptos crypto used for?
There are hundreds of apps on the Aptos blockchain for decentralized finance and gaming. They either use the Aptos (APT) coin directly or pay it for transaction fees (gas).
What happened to the Diem blockchain?
The Libra stablecoin for use on the Facebook platform was initially slated for a 2020 release. Due to anti-trust concerns around Facebook and lack of regulatory clarity on stablecoins, the launch kept on being delayed. Libra was renamed Diem, as Facebook’s parent company became Meta, and in January 2022, Meta sold Diem’s assets for $200 million.
Disclaimer
This article is not financial or investment advice. When dealing with cryptocurrencies, remember that they are extremely volatile and thus, a high-risk investment. Always make sure to stay informed and be aware of those risks. Consider investing in cryptocurrencies only after careful consideration and analysis of your own research and at your own risk.
