There is a new project in town dubbed by many as the Solana Killer. Even before it was released, this project drew the attention of a large number of tech-savvy and crypto enthusiasts. Can you guess what it is? Without a doubt, Aptos Blockchain.
Aptos Blockchain is described in the whitepaper as “A Safe, scalable, and upgradable Web3 infrastructure”. However, there are other reasons why it is highly anticipated, such as the Aptos Labs team behind it. It is led by former Meta employees who previously collaborated on the Diem project. Other Aptos Labs members also own extensive professional experience, having worked at large companies in both the blockchain and traditional finance industries such as Meta, Blackrock, Robinhood, Huobi, and JP Morgan...
To learn more details about Aptos, such as What is Aptos and Aptos Token? How does it work?..., keep reading the blog below!
1. What is Aptos Blockchain?
After 4 years of development and millions in funding, Aptos Blockchain was officially launched on October 17th. It is the Layer 1 platform, which aims to create the ideal blockchain that maintains decentralization and delivers top-notch security while offering scalability, fast transaction speed, and low fee.
Its ultimate goal is to decentralize the cloud infrastructure that powers web2 in order to build an all-encompassing blockchain solution that promotes web3 mainstream adoption. At the same time, Aptos Blockchain intends to build a DApp ecosystem focused on solving real-world problems.
So far, the project has done an excellent job of attracting investment funding. In July 2022, for example, the company raised $150 million in a Series A round led by FTX Ventures and Jump crypto. Previously, it had received $200 million from venture capital firms, including Tiger Global, Multicoin Capital, and a16z.
In September, Binance Labs announced that it was making a follow-on investment in Aptos as part of its strategic investment program. With that, the valuation of Aptos reportedly shot up to a whopping $4 billion.
2. Aptos Crypto Token
Aptos Token (APT) functions as the utility and governance token. It is utilized to:
- Make transactions fee on Aptos Blockchain
- Stake to ensure network security and earn more APT
- Buy and sell assets on Aptos Blockchain
The token distribution is currently along the following:
- Community: 51.02%
- Core distribution: 19%
- Foundation: 16.5%
- Investors: 13.48%
3. How Does Aptos Blockchain Work?
a. Block-STM Technology
Because Block-STM Technology creates an engine that efficiently handles smart contracts, Aptos Blockchain can provide parallel execution. So, what exactly is parallel execution? It refers to a process in which all transactions are performed simultaneously and validated afterward. This is far different from Ethereum, which processes transactions sequentially. Sequent transactions affect transaction finality as you have to wait for new transactions to be added and validated first. This will prioritize security but this comes with a heavy cost of efficiency.
To solve the Ethereum constraints, Aptos Blockchain executes first and asks questions later. Adequately placed transactions will be processed; failed transactions will not halt the entire chain; rather, they will be aborted and re-executed.
b. Move Programming Language
One of the things that make Aptos appealing is its custom programming language called Move, which was first designed for the Diem project. The Aptos team claimed that Move language makes transactions faster without sacrificing security. Move enables users to create custom resources that cannot be copied or discarded, making it much more difficult for malicious entities to gain control of the Aptos blockchain. Furthermore, Move makes it easier to audit and analyze the blockchain and smart contracts that use it.
c. PoS with BFT Consensus Protocol
Aptos is a proof-of-stake blockchain with an advanced Byzantine Fault Tolerance (BFT) consensus mechanism, as well as a set of validators for receiving, processing, and validating transactions.
APT token holders can use their tokens to stake in validators. This assigns a consensus voting weight to each validator based on the number of tokens staked in them. The validator can use their voting weight to participate in blockchain consensus and governance.
4. Is Aptos Worth Investing?
Aptos offers unique and promising features that cannot be found in other layer-1 protocols (except for Sui which is also a Diem-based blockchain). However, Aptos is heavily backed by venture capital (VC), and with the VC bankruptcy domino effect sweeping the industry, investors should be wary of VC-heavy projects. According to Aptos Explorer, the total supply is over 1 billion tokens, with over 800 million actively staked, implying that early investors, private buyers, and the Aptos team collectively control 80% of the token supply.
Nevertheless, Move technology is likely to stick around because it is a game-changing programming foundation for blockchain scalability and security. Aptos Labs, with decades of experience in the blockchain industry as well as Meta, is betting on the blockchain's long-term success.
To sum up, Aptos Blockchain offers promising features that can hardly be found in other Layer-1 protocols. Therefore, it can compete with Ethereum and Solana in terms of scalability and overall network capacity.
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