Former Meta engineers created a blockchain that wanted to transform the current crypto space, with improvements to scalability and security measures. With the Aptos blockchain receiving the title ‘Solana killer,’ we are wondering if this is hype or just another over-hyped chain.
In this coin report we take a look at Aptos, the project that received backing from substantial investors and was even backed by FTX in its early days. Let’s find out.
Aptos represents a Layer 1 blockchain network that functions via Proof-of-Stake (PoS) consensus rules stemming from the development team at the Diem project led by former Meta engineers.
With the Move programming language, Aptos can operate smart contract and DApp development.
Initially Mo Shaikh and Avery Ching were Meta employees who later developed Aptos blockchain technology after Meta shut down its Diem project.
Diem was launched by Facebook (now Meta) as Libra in 2019.
Libra was a stablecoin project initiated by Facebook in 2017, intended to be backed by a basket of fiat currencies. It was designed to offer a stable digital currency that could empower billions globally without stable access to traditional banking. The project was rebranded as Diem in 2020, shifting to a single-currency model backed only by the US dollar in hopes of appeasing regulatory bodies.
However, the project generated backlash from several government regulations which led to its shutdown.
Mo Shaikh, the co-founder of Aptos, stepped down as CEO on December 19, 2024 leaving Avery Ching, his fellow co-founder, to take over the leadership role. He announced his decision to ‘start a new chapter’ while remaining involved as a strategic advisor.
Under his leadership, Aptos successfully launched its layer 1 blockchain mainnet in October 2022 and raised $400 million in funding (which we will discuss in the next section).
Ching, previously the Chief Technology Officer, now leads Aptos across regions like India, Vietnam, South Korea, Japan, and China.
Throughout 2022, Aptos secured significant funding, starting with $200 million in seed funding led by Andreessen Horowitz in March, followed by a $150 million Series A round in July, supported by ‘deceased’ FTX Ventures and Jump Crypto.
The Aptos blockchain officially launched on October 17, 2022, just five days after its first block was created.
This review of Aptos (APT) was created for informational purposes. This article is not intended for promotion.
Aptos is built on a unique combination of parallel execution, a Byzantine Fault Tolerance (BFT) Consensus Mechanism, and the Move Programming language. Let’s see (in short) how each works:
This is a key feature that is used by the Aptos blockchain in order to create higher scalability and performance. By allowing multiple transactions to be processed continuously which later requires a verification phase.
Aptos uses a BlockSTM to facilitate parallel transaction execution technology which involves a multiversion data structure that allows storing multiple versions of the same data. With this, Aptos claims they can handle up to 160,000 transactions per second (TPS) .
For example, an account balance might have several versions reflecting different transaction states, which enables the simultaneous processing of transactions that might otherwise conflict.
When it comes to Solana, only independent transactions are processed in parallel. These transactions do not interfere with each other’s account balances. Solana requires transactions to specify which accounts will be read from or written to, allowing the system to group independent transactions for parallel processing.
For cases where transactions are dependent, such as when multiple transactions involve deductions from the same account, Aptos handles them differently. Each transaction reads the original data and writes a new version without immediately updating the blockchain.
The Aptos blockchain uses the BFT consensus algorithm, which is designed to provide high security and fault tolerance. Here is how it works:
Validators in Aptos must stake a substantial amount of coins, influencing their chances of being selected to process transactions. The more coins and better reputation a validator has, the higher their likelihood of selection. We are going to see how to stake APT later in this article.
The Move programming language, used by both Aptos and Sui, is specifically designed for creating user-defined transactions and smart contracts. Move enhances security and efficiency by treating tokens and NFTs as tangible assets, reducing vulnerabilities commonly found in other contract languages like Solidity. This innovative approach provides a robust foundation for building secure and efficient blockchain applications.
Aptos extends a low-latency, developer-friendly infrastructure that supports numerous decentralized Web3 applications, DeFi protocols and NFT marketplaces. Let’s see which ones they are and what their ecosystem is built off:
Aptos facilitates different dApps in their own DeFi ecosystem, which exists out of a few decentralized exchanges such as Liquidswap and lending protocols such as Mobius and Argo. Also, Aptos has enriched its DeFi ecosystem with prediction markets like Mojito.
According to the CEO you can:
Aptos reached $1 billion in total stablecoin market cap, a nearly 1,000% year-over-year increase. The $1 billion stablecoin market cap milestone demonstrates Aptos’ ability to handle a surge in stablecoin volume following its support of USDC, USDT, and USDe.
With major partnerships like Stripe, Tether, and Ethena, Aptos is demonstrating its appeal to institutional players.
AI Agents bring new life and possibilities and also Aptos has jumped on this bandwagon. As Aptos is ideally suited for hosting dApps and thus AI Agents because its highly-performant blockchain can handle the constant activity of Agents.
You can use the OpenAI API to create an Aptos Agent such as open-source frameworks like Metamove, Eliza, GOAT by Crossmint.
The official $APT Token contract adress:
0x5190E84918FD67706A9DFDb337d5744dF4EE5f3f
$APT is the native cryptocurrency of the Aptos blockchain. It is used for network operation, transaction fees, staking, and governance.
Like most blockchains, Aptos charges transaction fees for activities like transferring assets and executing smart contracts. These fees are paid in APT and go to validators as compensation for maintaining the network.
Validators must stake APT tokens to participate in transaction validation and block creation. This staking mechanism (BFT consensus algorithm) allows validators to earn passive income, aligning their incentives with network security.
To begin, go to the Aptos block explorer for the Figment validator. If needed, you can easily skip to Figment’s Aptos validator address by inputting the following address in the explorer:
To initiate the staking process, click the Stake button located on the right side of the page. After you click this button, it will prompt you to connect a wallet.
Connect an Aptos wallet. For the sake of this guide, as a reminder, we’re using Martian Wallet. Once you’re connected to your Aptos address, you can start the staking process.
Enter the amount of APT you want to stake and click ‘Deposit’ on the page. Once you click ‘Deposit,’ you’ll be prompted to confirm the transaction on your wallet.
Wait for the transaction to confirm on the blockchain. Congratulations! You staked Aptos successfully with a Figment validator.
After delegating your APT, you can navigate to your wallet or the block explorer to view your delegations. From this page, you will be able to add more stake and withdraw your APT rewards.
The total initial supply of $APT tokens is 1 billion, with a precision of 8 decimal places, allowing it to be divided into as small as 0.00000001 APT.
At launch, the majority of $APT tokens are locked and follow a structured vesting schedule over several years to ensure long-term sustainability and minimize market instability. The token supply is allocated across four main categories:
Of the total supply, only 160 million tokens were initially unlocked and circulating, primarily allocated from the community’s share.
Aptos has made some moves last year in expanding its ecosystem and showcasing its potential. It hosted its first developer conference, Aptos Experience, in Seoul, launched Move 2, an upgraded smart contract language now adopted beyond Aptos (e.g., in Movement, an Ethereum Layer 2), and set a record with 326 million daily transactions, while forging integrations with major players such as Stripe, Franklin Templeton, and BlackRock.
With rising developer interest in Web3, Aptos is enthusiastic about the convergence of finance, loyalty programs, commerce, and advertising. Its multi-year partnership with NBC to gamify fan engagement on-chain exemplifies its blockchain’s potential.
But, Aptos claims its optimized technology can achieve theoretical speeds of up to 160,000 transactions per second (TPS), though this remains unproven. Since its mainnet launch in October 2022, the blockchain has averaged 7 TPS, with a peak of 288 TPS. More activity is needed to fully test its limits and validate its scalability.
Questions have also arisen regarding its token allocation and staking structure. As with any emerging Layer 1 blockchain, only time will reveal whether Aptos can meet its ambitious goals.
As with any emerging Layer 1 blockchain, Aptos faces intense competition in a crowded market, and its long-term success is far from guaranteed. The project will need to demonstrate its value proposition and attract a robust developer community to establish itself as a viable alternative and be a real killer of the established platforms.
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