What Is Aptos? How Does It Work? A Comprehensive Guide

What Is Aptos?

The Aptos Blockchain is presented as a “scalable, safe, reliable, and upgradable” network that has been dubbed by many as “the Solana Killer.” Aptos is a layer-one blockchain developed by Aptos Labs, founded by core contributors of Diem (developed by Meta), and uses Proof-of-Stake (PoS) for its consensus algorithm. The network has seen a steady rise in total value locked thanks partly to a growing ecosystem of dApps.

Key Takeaways

  • Aptos is a new blockchain that aims to address the scalability and reliability issues faced by other layer-one protocols such as Ethereum and Solana.
  • Aptos is developed by Aptos Labs, founded by core contributors of Diem, and uses Proof-of-Stake (PoS) for its consensus algorithm.
  • Aptos is presented as a “scalable, safe, reliable, and upgradable” network that has been under development for over three years and has just launched its mainnet.

What Is The History of Aptos?

Aptos, the newcomer in the blockchain world, boasts a history steeped in tech giants and lofty ambitions. Its story begins in 2019, not as Aptos, but as Libra, a stablecoin project spearheaded by Meta (formerly Facebook). Led by Mo Shaikh and Avery Ching, a team of talented engineers tackled the challenge of building a global payments system on blockchain technology1.

However, regulatory hurdles and internal conflicts led to Libra’s demise in 2021. Undeterred, Shaikh and Ching saw an opportunity. They acquired the Diem blockchain technology from Meta and, alongside key former Libra team members, embarked on a new venture: Aptos Labs2.

December 2021 marked the birth of Aptos. Flush with funding from VC giants like a16z and Coinbase Ventures, the team focused on refining the original Libra technology, aiming for a blockchain that prized scalability, security, and reliability.

The key pillars of Aptos’ history include:

  • October 2022: Mainnet launch marks the official debut of the Aptos blockchain. Dubbed “Autumn,” it introduces the Move programming language designed for security and efficiency.
  • Nov 2022: Aptos Names Service rolls out, allowing users to create human-readable domain names for their wallets and dApps.
  • February 2023: Aptos Foundation was established to foster decentralized governance and promote ecosystem growth.

However, Aptos’ journey hasn’t been without bumps. The project faced initial criticism for its centralization and heavy VC backing. Despite its technical prowess, its price dropped significantly during the 2023 crypto market downturn.

How Does Aptos Work?

They’re powered by a unique network and consensus mechanism designed for efficiency and reliability. Let’s dive into the technical details, minus the jargon:

The Network:

  • Validators: Imagine a team of computers called validators, like gatekeepers verifying transactions. These are independent nodes chosen through staking (more on that later) who work collectively to process transactions and maintain the blockchain’s state.
  • Clients: Users interact with Aptos through clients, which could be wallets or dApps. They submit transactions to validators for verification and approval.
  • Full Nodes: Some computers choose to run full nodes, keeping a complete copy of the blockchain history. They act as independent checks and balances on the validators.

The Consensus Mechanism:

  • AptosBFT: This Byzantine Fault Tolerance (BFT) algorithm ensures all validators agree on the validity of transactions even if some are faulty or unreliable3. Think of it as a highly secure voting system where validators reach a consensus on each transaction.
  • Parallel Execution: Unlike traditional blockchains that process transactions one by one, Aptos can handle them in parallel. Imagine splitting up tasks among efficient workers instead of having them wait in line. This significantly boosts speed and throughput.
  • Move Programming Language: Transactions on Aptos are written in Move, a secure and resource-efficient language designed specifically for blockchain. Think of it as a precise instruction manual for validators to follow.

Staking:

  • Anyone can participate in the network by staking Aptos tokens. The more tokens staked, the higher the chance of becoming a validator or getting your validator chosen4.
  • Staking also incentivizes good behavior. Validators who try to cheat or act maliciously risk losing their stake, ensuring everyone plays by the rules.

What Are The Leading dApps on Aptos?

While Aptos is still a young blockchain, it’s already attracting exciting dApps across various fields. The total value locked on Aptos has been steadily growing, according to data from DeFi Lama5, which reflects a growing interest from developers and users. The leading dApps include these:

Thala: A Decentralized Exchange (DEX) specializing in stablecoin swaps. It facilitates the exchange of various stablecoins on the Aptos blockchain, enabling users to move between assets with minimal price slippage and transaction fees.

Amnis Finance: A Yield Generation Protocol focused on offering stable and predictable returns on deposited assets. Users can lock their cryptocurrencies in various yield-bearing vaults, earning passive income through automated strategies like lending and liquidity provision.

Aries Market: An NFT Marketplace for buying, selling, and managing non-fungible tokens (NFTs) on the Aptos blockchain. It provides a user-friendly interface for browsing, minting, and trading NFTs across various categories.

Aptos' total value locked has been steadily rising.
Aptos’ total value locked has been steadily rising. Source: DeFiLama

What Are The Tokenomics Of Aptos (APT)?

At the time the mainnet was launched, APT’s initial supply was set at 1 billion tokens, and the minimal unit is called an Octa. The token distribution is divided into four categories: community, core contributors, foundation, and investors. The community category, which accounts for 51% of the initial supply, is designated for ecosystem-related items, such as grants, incentives, and other community growth initiatives.

Some of these tokens have already been allocated to projects building on the Aptos protocol and will be granted upon the completion of certain milestones. A majority of these tokens are held by the Aptos Foundation, while a smaller portion is held by Aptos Labs. These tokens are anticipated to be distributed over a ten-year period.

APT has a total supply of just over 1 billion and a circulating supply of 308 million, according to CoinGecko6. APT has a market capitalization of just under $3 billion, putting it near the top 30 cryptos.

Aptos (APT) price

How Has Aptos (APT) Traded In the Past Year, And What Is The Aptos Price Prediction?

APT has traded positively in the past 12 months, racking up gains of over 154%, according to TradingView7. The surge has pushed APT above $9, which is around 50% below its all-time high of $19.

Coincodex8 is bullish on APT with a yearly high target of $14 for 2025 and $39 for 2026, which would mark a new all-time high.

Changelly9 has issued an $8 average target, which suggests a slight downside. They’ve issued a positive forecast for 2025 with an average target of around $15.

Remember that crypto prices are extremely volatile, and you should always do your own research before risking your capital. Nothing in this post should be considered as financial advice.

APT has rallied in the past 12 months along with the rest of the market.
APT has rallied in the past 12 months along with the rest of the market. Source: TradingView

Final Thoughts On Aptos

Aptos’ innovative technology promises a future of faster, smoother crypto experiences, but the journey won’t be without bumps. While early dApps showcase their potential, their long-term success hinges on developer adoption, ecosystem growth, and weathering the ever-shifting winds of the crypto market.

Ultimately, Aptos is a bold experiment, a challenger aiming to reshape the blockchain landscape. Whether it becomes a revolutionary force or fizzles out remains to be seen. But one thing’s certain: as it sprints towards its future, Aptos keeps the entire crypto world watching, curious to see if it can outrun the competition and claim its place as the next big thing.

Frequently Asked Questions

What Is Aptos?

Aptos is a layer-1 blockchain platform that promises significantly faster transaction processing, enhanced security, and improved reliability compared to other established blockchains like Ethereum. Launched in October 2022, it’s still a relatively young player in the crypto space, but it has quickly garnered attention for its unique features and ambitious goals.

What Does Aptos Do?

Aptos serves as the foundational platform for a diverse ecosystem of applications and functionalities. Here are some key things it enables:

Fast and secure transactions: With its parallel execution engine and advanced consensus mechanism, Aptos can handle thousands of transactions per second, making it significantly faster than older blockchains. This significantly reduces transaction fees and waiting times, improving the overall user experience.

Building DeFi and NFT applications: Aptos provides a fertile ground for developers to create innovative decentralized finance (DeFi) and non-fungible token (NFT) projects. From lending and borrowing platforms to NFT marketplaces and play-to-earn games, the possibilities are endless.

Where Can You Trade Aptos (APT)?

You can trade APT on several leading exchanges, including Gate.io and Binance.

Peter Barker

WRITTEN

Peter Barker

Peter is an experienced crypto content writer and a DeFi enthusiast with more than 3+ years of experience in the space. Previously a journalist and news editor at a leading European news sourcing agency.

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