Aptos Blockchain, Can It Be The Next Big Thing in Blockchain Technology?

Aptos blockchain is a new layer one blockchain project that emerged from the ashes of Facebook’s failed Libra initiative. Founded by two former Meta employees, Aptos aims to provide a fast, secure, and scalable platform for decentralized applications. In this article, we’ll break down how Aptos works, its unique technology, and the tokenomics behind its native coin, APT.

Key Takeaways

• Aptos is a layer one blockchain designed for speed and security.
• It uses a unique parallel execution method to process transactions.
• The Aptos BFT consensus mechanism ensures network reliability.
• APT token serves multiple purposes, including transaction fees and governance.

What Is Aptos Blockchain?

Aptos Blockchain is a layer one blockchain that supports smart contracts, similar to Ethereum. It was developed by Muhammad Sheikh and Avery Ching, who were part of the team that worked on the now-defunct DM blockchain. After the project was shut down, they leveraged their experience and technology to create Aptos, which quickly attracted significant investment, raising over $350 million in funding.

Read more: Aptos Experience Unites Top Visionaries, Builders in Seoul to Celebrate the Future of Web3 on Aptos

Vision and Purpose

Aptos blockchain aims to be a fast and secure blockchain with low transaction fees, promoting the adoption of Web 3.0 technologies. The team claims that Aptos can handle up to 160,000 transactions per second. However, initial performance during its launch was much lower, processing only four transactions per second. As of now, it averages around seven transactions per second, with a peak of 288 transactions per second.

How Does Aptos Work?

To understand how Aptos achieves its performance goals, we need to look at three key components:

1. Parallel Execution of Transactions
2. Aptos BFT Consensus Algorithm
3. Move Programming Language

Parallel Execution of Transactions

In traditional blockchains like Ethereum, transactions are processed sequentially. This means that each transaction must wait for the previous one to complete, which can lead to delays and higher fees. Aptos, on the other hand, uses parallel execution to process multiple transactions simultaneously.

• Independent Transactions: Transactions that do not affect each other can be executed at the same time. For example, if two users send tokens to different accounts, these transactions can be processed in parallel.
• Dependent Transactions: If transactions depend on each other (like sending tokens from the same account), Aptos uses a method called optimistic execution. It assumes no conflicts will occur and processes transactions in parallel, verifying later if any issues arise.

This approach allows Aptos to maximize throughput while minimizing delays.

Aptos BFT Consensus Algorithm

Aptos employs a consensus mechanism known as Aptos Byzantine Fault Tolerance (BFT). This system allows the blockchain to function correctly even if up to one-third of the validators are compromised. Validators must stake a significant amount of APT tokens to participate in the network, which incentivizes honest behavior.

• Leader Selection: For each block, a validator is randomly chosen to lead the transaction processing. The more tokens a validator stakes, the higher their chances of being selected.
• Voting Process: After processing transactions, the leader sends the block to other validators for approval. A block is added to the blockchain once it receives votes from more than two-thirds of the validators.

Move Programming Language

The Move programming language is another critical aspect of Aptos. Originally designed for the Libra project, Move allows developers to write smart contracts and applications efficiently. It has similarities to Rust, making it easier for developers familiar with other blockchains to adapt.

• Resource Management: In Move, tokens and NFTs are treated as physical assets, stored as resources in user accounts. This design aims to enhance security and prevent common vulnerabilities, such as reentrancy attacks.

Tokenomics of APT

The APT token serves several purposes within the Aptos ecosystem:

• Transaction Fees: Users pay fees in APT for transactions on the network.
• Staking: Validators can stake APT to secure the network and earn rewards.
• Governance: APT holders can suggest and vote on changes to the blockchain, although this is currently limited to validators.

Distribution and Inflation

When Aptos launched its mainnet in 2022, 1 billion APT tokens were minted. The distribution is as follows:

• 13.5% to investors
• 16.5% to the Aptos Foundation
• 19% to core contributors
• 51% to the community (distributed through grants and incentives)

Currently, only 160 million APT tokens are circulating, with the rest locked and set to unlock over time. The inflation rate for APT is 7%, decreasing over the years, which means the total supply will gradually increase.

Aptos represents a significant step forward in blockchain technology, combining innovative execution methods with a robust consensus mechanism. While it has faced challenges in its early days, the potential for high transaction throughput and a strong development team could make it a key player in the future of decentralized applications. As always, it’s essential to stay informed and consider the risks before investing in any cryptocurrency.