Aptos is a Layer-1 blockchain network focused on decentralisation, speed, and scalability, supporting decentralised applications. It was founded in 2021, emerging from the discontinued Libra and Diem blockchain initiatives originally launched by Meta (formally Facebook). After Meta discontinued Libra, Aptos continued its development, culminating in the launch of its mainnet on the 12th of October 12 2022.

What is Aptos?

Aptos is a decentralised blockchain and scalable Web3 infrastructure. Its parallel execution engine and modular design enable high transaction throughput and low latency. The native token of the blockchain, APT, is used to pay network transaction fees, earn staking rewards, and vote on decisions impacting the platform's future.

Aptos is a scalable layer-1 proof-of-stake blockchain utilising the Move programming language, promising enhanced reliability, usability, and security. The Aptos genesis occurred on the 12th of October 2022, followed by the mainnet launch, "Aptos Autumn," on the 17th of October 2022.

Key features of Aptos include a parallel execution engine, low transaction costs, and advanced security measures. Since its launch, the Aptos blockchain has attracted attention for both positive and negative reasons. Initially, the crypto community criticised Aptos for perceived centralisation and heavy venture capital backing, along with a lack of transparent tokenomics.

Despite early criticisms, Aptos gained significant traction, emerging as a promising layer-1 protocol. The platform drew attention due to its high-profile founders, Mo Shaikh and Avery Ching, and its claims of technological innovation, security, and scalability.

A major factor in Aptos' rise in popularity was its strong social media presence, which quickly spread across the crypto community and sparked widespread discussion.

Who Are The Founders of The Aptos Blockchain?

Aptos was founded by former members of Meta's (Formally Facebook) abandoned Web3 project, Diem. The team is led by Mo Shaikh, who now serves as Aptos' CEO, and Avery Ching, the current CTO. The anticipation for Aptos’ mainnet and token launch was high, as the Diem developers had invested over three years in its development, providing a solid foundation for Aptos. The team operates under the name "Aptos Labs."

Aptos' connection with Meta garnered significant attention, particularly due to its claims about leveraging cloud infrastructure for scalable and cost-efficient application development. The Aptos ecosystem supports multiple DeFi projects, including decentralised exchanges, lending protocols, and liquid staking. 

How Does The Aptos Blockchain Work?

Aptos operates on a Byzantine fault-tolerant (BFT) PoS consensus mechanism, which allows for high transaction throughput through a parallel execution engine known as Block-STM. 

Unlike other blockchains that execute smart contracts sequentially or with a massive parallel workload, Aptos processes all transactions simultaneously and validates them afterwards. Failed transactions are aborted and re-executed by its software transactional memory (STM) libraries, which manage network conflicts.

According to its whitepaper, Aptos employs the flexible Move programming language, modified data sharding technology, a PoS consensus mechanism, and a state machine for a fast, scalable, and secure system. The Move Virtual Machine (MVM) converts Move modules to bytecode, which the Aptos blockchain executes similarly to Ethereum smart contracts.

What Are The Potential Use Cases of Aptos?

Aptos aims to empower an ecosystem of decentralised applications (DApps) to address real-world user challenges, fostering mainstream adoption of Web3. Aptos is currently one of the highest transaction throughput blockchains in crypto with the goal of reaching 1 million transactions per second (tps). This processing speed and a sub-1 second finality positions Aptos as a front-runner to become one of the most suitable blockchains to handle the high throughput needs in areas such as DeFi, AI and more.

The Move programming language enables the development of sophisticated smart contracts, expanding potential use cases. Additionally, Aptos' upgradeability and configurability support the implementation of new use cases, while its horizontal throughput scalability enhances the user experience.

What Is The Aptos Token?

APT is the native token of the Aptos blockchain, used primarily for transaction and network fees. Validators can prioritise high-value transactions and discard lower-value ones, ensuring efficient operation when the system is at capacity. Over time, network fees will align with the cost of installing, maintaining, and running nodes.

To be a validator, one must hold a minimum number of staked APT. Validators decide on the division of rewards between themselves and their stakers. Stakers can choose validators to stack their Aptos tokens and receive a pre-agreed split of rewards, distributed at the end of each epoch. The maximum reward rate for stakers is currently around 7% per annum, decreasing by 1.5% each year until it reaches 3.25%, as stated in the whitepaper. Reward amounts and mechanisms can be changed through governance voting.

APT also serves as a governance token, allowing holders to vote on protocol upgrades and proposals. Initially, the tokenomics of APT were controversial due to the lack of disclosed total supply, distribution, and overall plan. Aptos Labs later revealed its tokenomics, clarifying that out of the 1 billion tokens in initial supply, 51% was allocated to the "community" category, 19% to "core contributors," 16.5% to the "foundation," and 13.48% to investors.