What Is Aptos?

Aptos is a Layer-1 Proof-of-Stake (PoS) blockchain that aims to bring mainstream adoption to web3 by building a scalable, secure, and user-friendly platform for decentralized applications (DApps). Aptos utilizes the Move programming language, an innovative, Rust-based language originally developed by engineers behind Meta’s Diem blockchain. This language facilitates efficient, secure, and reliable smart contract development, making it well-suited for the Aptos ecosystem’s needs.

Aptos stands out for its focus on scalability and performance. Through its unique parallel execution engine, Block-STM, the platform can theoretically achieve a throughput of over 160,000 transactions per second (TPS). This high-speed transaction processing is backed by a Byzantine Fault-Tolerant (BFT) consensus protocol that enhances reliability by ensuring that failed validators have minimal impact on system performance. In addition, Aptos offers a low-cost and efficient network, aiming to make web3 applications more accessible to users and developers alike.

In March 2022, Aptos raised $200 million in a seed funding round led by Andreessen Horowitz (a16z), with participation from major investors like Tiger Global and Multicoin Capital. Following this, in July 2022, Aptos secured an additional $200 million in a Series A round with backing from firms like Dragonfly, Franklin Templeton, and Apollo Global. The platform’s mainnet officially launched on October 18, 2022, with the genesis block created on October 12, 2022.

How Does Aptos Work?

Aptos employs several advanced technologies to address key challenges in the blockchain space, such as scalability, security, and usability:

Parallel Execution: Aptos’s Block-STM engine allows for the simultaneous processing of multiple transactions, which significantly enhances the platform’s throughput. This unique capability sets Aptos apart from other blockchains, as it avoids the bottlenecks commonly associated with sequential transaction processing, allowing for speeds of over 160,000 TPS.

Byzantine Fault-Tolerant Consensus: Aptos uses a BFT consensus protocol to increase the network’s reliability and resilience. This protocol ensures that the network remains stable and secure, even if some validators fail or act maliciously, by minimizing their impact on transaction throughput and latency.

Move Programming Language: Move is a secure, resource-oriented programming language that prioritizes both user and developer accessibility. It facilitates the safe execution of smart contracts by preventing common vulnerabilities, making it easier for developers to build secure applications on the Aptos platform.

$APT Token: The $APT token serves as the native cryptocurrency within the Aptos ecosystem. It has a dual function, acting as a payment medium for transaction fees and as a governance token. $APT holders can participate in protocol governance by voting on network upgrades and changes, playing an active role in the platform’s evolution.

By combining these features, Aptos seeks to create a blockchain that is not only fast and reliable but also accessible and secure, catering to a wide range of applications and use cases in the web3 space.

Aptos' Founding Team

Aptos was founded by Mo Shaikh and Avery Ching, two former Meta employees who previously worked on the Diem blockchain project. After Diem’s discontinuation in January 2022, Shaikh and Ching decided to leverage their expertise to create a new blockchain platform, Aptos, under their new venture, Aptos Labs.

Mo Shaikh, Aptos’s CEO, has extensive experience in blockchain technology and financial services. He has worked in private equity and venture capital, focusing on scaling products and overseeing strategic growth initiatives in the fintech space. Shaikh’s leadership at Aptos is grounded in his vision for a decentralized platform that addresses the scalability and security challenges of web3.

Avery Ching, the CTO of Aptos, is a seasoned software engineer with a background in building high-performance systems. At Meta, he was one of the principal software engineers for the Diem project. Ching’s technical expertise in consensus algorithms and blockchain architecture has been instrumental in the development of Aptos’s Block-STM and BFT consensus protocols.

Together, Shaikh and Ching have assembled a team of researchers, engineers, and designers, many of whom previously worked on Diem, to build a platform that carries forward some of the core technologies of Diem. With a shared goal of pushing blockchain technology into the mainstream, the Aptos team is committed to creating a reliable and scalable network that supports real-world applications and fosters widespread adoption of decentralized technologies.

$APT Tokenomics and Risks

Aptos Labs, the entity steering the Aptos project, has divulged key details. The initial token supply allocation includes 51% to the "community" category, 19% to "core contributors," 16.5% to the "foundation," and 13.48% to investors. The utility of $APT encompasses payment for transaction and network fees, alongside its governance role in voting mechanisms. Stakers and validators are incentivized through the earning of rewards, with the initial staking reward rate set at around 7% per annum, gradually decreasing to 3.25% per year. However, it is imperative to acknowledge potential risks associated with $APT. These encompass a dependence on venture capital, introducing vulnerability to incidents like the FTX collapse, and susceptibility to market volatility, a common trait among cryptocurrencies. Furthermore, the challenge of achieving widespread adoption, especially against established platforms such as Ethereum and Solana, poses a competitive risk that could impact Aptos' market positioning.