What is Aptos?
Aptos is a layer 1 blockchain developed by Aptos Labs with the vision of becoming the most scalable blockchain, providing the most security and trust.
Aptos has been developed over the past three years by more than 350 developers globally. Aptos provides new and novel innovations in consensus, smart contract design, system security, processing performance, and decentralization.
Aptos is developed using the Move programming language, Move is a programming language developed for the former Meta’s Diem project (However, the project was later canceled due to legal issues).
Who is the founder of Aptos?
Aptos was founded by Aptos Labs, co-founded by Mo Shaikh and Avery Ching. Both Mo and Avery along with several other team members worked together at Meta on the Diem blockchain project, then together founded Aptos Labs to continue building on the technology they originally developed for Diem.
How does Aptos work?
The main feature of Aptos is parallel execution. Most current blockchains use a method of transaction sequencing known as serial or sequential execution, in which a sequence of transactions is constantly updated: every time you make a transaction, the transaction translation will be added to a single ledger containing every transaction ever made on the network and updated across thousands of nodes.
Because they are all added once, it is necessary to wait for each transaction to be verified, which will provide greater security, but will slow down the transaction speed.
Features of Aptos
1. Use the Move programming language
Move is a Rust-based programming language. Move is a programming language for writing secure smart contracts originally developed for the Diem blockchain project by Meta (formerly Facebook) to increase scalability and security for Diem.
The Move programming language is designed for secure resource management and verifiable execution on the blockchain. The blockchain of Aptos and Move was co-developed at the same time over three years ago. All accounts, transaction fees, standard libraries, node validators management, and configuration are implemented with Move.
2. BFT Consensus Protocol
Aptos uses the Byzantine Fault Tolerant (BFT) consensus protocol derived from Diem’s HotStuff protocol to improve latency. BFT works in such a way that when nodes on the network are down or the network does not fail. However, the system continues to run while validating transactions.
3. Private key recovery
To reduce user hacking and key theft, Aptos gives every account the flexibility to exchange their private keys for enhanced security. Validators may also periodically change their consensus key for added security.
4. Scalability and fast transaction speedOne of the biggest problems of blockchain since the early days of development is scalability, Ethereum is known for stability, but transaction fees on Ethereum are relatively high.
Other blockchains like Solana or Avalanche have different solutions, but they still have limitations and are often congested.
What about Aptos? As announced by the developers, during the testnet phase, Aptos showed a positive sign when it reached a record of 160000 transactions processed simultaneously in 1s. However, this is only the testnet phase, we need time to see if Aptos will achieve this in the upcoming mainnet.
Detail information about APT
- Token name: Aptos
- Ticker: APT
- Blockchain: Ethereum
- Standard: ERC-20
- Contract: 0x89FB13D6513172a0b0F98FfBD5368Efcb3b623Ea
- Total Supply: 1300,000,000 APT
Tokenomics
Distribution Schedule for the Community and the Aptos Foundation
This pool of tokens 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 (410,217,359.767) are held by the Aptos Foundation, and a smaller portion (100,000,000) are held by Aptos Labs. These tokens are anticipated to be distributed over ten years:
- 125,000,000 APT available initially to support ecosystem projects, grants, and other community growth initiatives now and in the future for the Community category
- 5,000,000 APT available initially to support the Aptos Foundation initiatives for the Foundation category
- 1/120 of the remaining tokens for the community and the Foundation are anticipated to unlock each month for the next 10 years
Distribution Schedule for Core Contributors and Investors
All investors and current core contributors are subject to a four-year lock-up schedule, excluding staking rewards if applicable, from mainnet launch that unlocks according to the following schedule:
- No APT available for the first twelve months
- 3/48ths of such tokens unlock on the 13th month after mainnet launch and each month after that up to and including the 18th month
- 1/48th of the tokens unlock each month later beginning on the 19th month after mainnet launch so that all such tokens are unlocked on the fourth anniversary of mainnet launch
Estimated Token Supply Schedule
Anticipated Token Supply Changes
- Token holders who stake their tokens to a validator operator for purposes of securing the network and achieving consensus may receive staking rewards
- Staking rewards are split between validator operators and stakes and are not subject to restrictions on distribution
- Currently, the maximum reward rate starts at 7% annually and is evaluated at every epoch
- The maximum reward rate declines by 1.5% annually until a lower bound of 3.25% annually (expected to take over 50 years)
- These rewards increase the total supply of the Aptos network and are dependent on the staked amount and validator performance
- Transaction fees are currently burned, although this may be revisited in the future with on-chain governance voting
- All rewards and reward mechanisms are also modifiable via on-chain governance
Why is Aptos (APT) growing so fast?
Stable Ecosystem Development
Blockchain Aptos was launched in October 2022 and is still in the early stages of ecosystem development. There are very few decentralized finance projects or non-fungible tokens on the blockchain, and smart contract activity is currently limited. Over 94% of blockchain transactions are for APT transfers, indicating negligible decentralized application activity.
Binance Launches Several Liquidity Pools for APT
The spike was due to the news of a major announcement by Binance, the largest cryptocurrency exchange, on January 20. According to the announcement, listing fees for new projects will increase from 1% to 3. %. The Liquid Swap service on Binance has expanded to include Aptos (APT/BTC and APT/USDT).
An automated market-making strategy was used to set up the Binance liquidity farming liquidity pool. It works similarly to other DeFi swaps as it comprises different liquidity pools, each containing 2 tradable digital tokens.
Binance recently announced that they are opening new liquidity pools that will serve different markets. Trading volume increased significantly thereafter, with the APT/BTC and APT/USDT pairs seeing a significant increase in trading activity.
Aptos can succeed in the DeFi space. Binance commented on their plans to compete directly in the field and how they will put pressure on former leaders like Solana.
Aptos is recovering from the recent market crash and is at a new high. The rally shows the growing awareness and interest of traders toward cryptocurrencies.
The Support of PancakeSwap
On January 6, PancakeSwap – the largest DEX on BNB Chain, announced its implementation on the Aptos blockchain following approval from the user community. The week following this announcement, the price of APT increased by 97.6%, marking the beginning of APT’s bull run in 2023.
Will Aptos still potential to invest in 2023?
Aptos is currently riding an incredible rally. The token is up more than 400 percent YTD, jumping from $3.43 on January 1 to $17.77 at the time of writing. That’s after registering a further 31 percent spike over the last 7 days. Further, some signs indicate that APT has the wings to rise further.
Most experts believe that, after Aptos reaches its peak, it will commence on a downward trend, settling within the $8 to $10 range. However, cryptocurrencies are highly volatile and prices can rise/fall despite the strongest indicators. Therefore, it is important to do your own research and invest only as much as you can afford to lose completely. Good luck investors!