Introduction to Aptos: Is this the Fastest Layer 1 Network?

Introduction

As the Layer 1 battle rages on, there’s a new kid on the block: Aptos.

If you have looked at Twitter lately, you must have seen a new Layer 1 blockchain that has everyone talking. As blockchains struggle to solve the trilemma of decentralization, scalability, and security, Aptos has been lauded as the probable solution.

The blockchain industry is never static. There are always new projects popping up, and those that are being built on existing networks. Aptos is a new, custom-built layer 1 network that uses the Move programming language and virtual machine to deliver a scalable, fast, and usable blockchain.

The project is not new. It is based on an old project called Libra. Libra was first known as Diem before the project split from Facebook (now Meta).

However, before we go into what Aptos is about, we must first understand what layer 1 blockchain is about.

Layer 1 Blockchains: An Introduction

The foundational level of blockchain architecture is Layer 1.

Without assistance from another network, layer 1 blockchains validate and carry out transactions. They also use cryptocurrencies to pay for transaction costs. Since these are the primary networks in their ecosystem, we refer to them as “layer 1.” We have off-chains and other layer-2 solutions that are built on top of the primary chains.

Source: Moralis.io

For instance, Ethereum has its own native cryptocurrency, Ether manages transactions without relying on an external network. Polygon, an L2 scaling solution based on Ethereum, is by far the most popular.

What Is Aptos?

Aptos is a Layer 1 solution network named from the Ohlone language, which means “the people.” The programmable chain aims to fulfill the decentralization ideal of bringing fair access to all. With its safe, upgradeable, and scalable network, the blockchain hopes that its products and applications give the most disadvantaged access to adopt the innovations that blockchain technology offers.

The proof-of-stake blockchain is built using Move programming language, a Rust-based programming language developed for Diem.

The Aptos network’s parallel execution engine (Block-STM) enables it to process more than 130K transactions per second. Due to its high throughput, network users enjoy reduced transaction costs.

The network promises better solutions that set it apart from existing Layer 1 blockchains like Ethereum and Solana. For scalability reasons, the Aptos network offers better transaction speed and proven reliability.

Brief History

What’s now referred to as Aptos started as a tech company called Diem. Meta acquired Diem in their efforts to launch their own stablecoin Libra. However, things came to a halt, and Meta sold Diem to Silvergate Capital for $182 million in late 2021.

Former employees of Diem, Mo Shaikh, and Avery Ching founded Aptos Labs in December 2021. The company secured funding from Anderssen Horowitz and other Web3-focused VC funds, and work quickly got underway.

In less than a year, the project launched on October 17, 2022, with the Aptos “Autumn” Mainnet coming online. In a few days, the project struck a deal with Google Cloud and launched its Names Services.

According to the whitepaper, the Aptos blockchain has reportedly been built over the past three years. This new layer-1 blockchain was developed by more than 350 developers from around the world. A complete list of the other members of the Aptos Labs team, including PhDs, researchers, engineers, designers, and strategists, can be found here.

The chain also features new and innovative developments in a number of areas.

A Complete Blockchain

Though new, the Aptos Blockchain has been called the “Solana killer.” The novel blockchain has been praised for its ability to process 130,000 transactions per second without losing its security and dependability.

Here are some key features that make the blockchain stand out:

1. Move Programming Language:

As earlier mentioned, the Move was custom-built for the now-defunct Diem Blockchain. The programming language was created to meet the specific needs of Aptos Developers, and its global storage is more secure than most programming languages.

Move is a strong language against denial-of-service (DOS) attacks at the transaction level. Like Ethereum’s Solidity, the Aptos blockchain’s core is designed using the Move protocols.

The Move language helps ensure that transactions are completely predictable, timed, and sealed while focusing on predefined information on the ledger. Fees, validator nodes, and configuration settings are all done using Move.

1. TPS:

Aptos can process transactions more quickly by utilizing Software Transactional Memory (STM), which results in 160,000 non-trivial transactions per second (TPS).

As of December 2, 2022, there were 102 active validators with an average transaction rate of 8 TPS. Although it falls well short of the expected 160,000 TPS, this is still on pace with other blockchains. The peak speed of transactions in the Aptos blockchain for the first 30 days of November 2022 was 2,107 TPS.

In reality, even during busy periods, a blockchain only needs to handle a few thousand TPS. This level of throughput is revolutionary for layer 1s.

1. BFT Consensus Protocol:

The Byzantine Fault Tolerant (BFT) consensus protocol is audited and formally verified to ensure that the network is not compromised. The chain will not fork until the BFT honesty guarantees remain true.

The BFT engine employs a consensus procedure that adheres to the order of transactions. This increases the speed of the network while decreasing latency.

1. Private Key Delegation:

Aptos allows users of the network to hand over control of their private keys to a third party. This allows the owner of the keys to give full or partial control to an external user without hassle.

Aptos Ecosystem

The young blockchain already has a booming ecosystem with many projects. DEXs, marketplaces, and DeFi are being built on the blockchain.

DeFi

Many DEXs have launched or are currently being built on the Aptos blockchain. The most popular being Pontem which recently raised $4.5 million from Delphi and Animoca Brands.

Some lending and borrowing protocols are planning to launch soon. Aptoslend is a decentralized lending protocol supported by Aptos Labs. Also, Njord Finance is an algorithmic liquidity protocol. Hippo is a liquidity aggregator on the network.

NFT Marketplaces and Projects

Topaz is the biggest Aptos NFT marketplace by trading volume, and it launched as soon as the Aptos Mainnet went online.

BlueMove is another Aptos NFT marketplace that is also used as a launchpad for NFT collections.

Bored Aptos is a collection of 10,000 Bored Aptos Yacht Club Collection items that is not affiliated with Yuga Labs.

Aptomingos is a collection of 1212 flamingos launched by B.FLY Labs with a floor price of 160 $APT.

Wallets

There are currently some wallets on the blockchain. The most used wallet on the network is the Martian wallet. It’s available as a browser extension, while the iOS and Android versions will be launched soon.

The other popular wallet is Petra, which was built by the Aptos Labs team.

Tokenomics

An initial 1 billion token supply of the Aptos token (APT) will be allocated in four pots at launch:

• Community — 510,217,359.77 (51.02%)
• Core Contributors — 190,000,000 (19%)
• Foundation — 165,000,000 (16.5%)
• Investors — 134,782,640.23 (13.48%)

Except for staking incentives, there is a four-year vesting timeline that applies to all investors and present core contributors. For these token categories, a 12-month lock-up term applies.

Aptos Vs. Other Layer 1s

Avalanche

The Avalanche Blockchain is a well-established platform in the crypto space. The network is currently the 16th cryptocurrency by market cap and looks poised for more.

In comparison with Aptos, Avalanche is an EVM blockchain protocol that is compatible with Solidity. Though revolutionary, the Aptos ecosystem has more innovative features.

Solana

Some crypto analysts have tagged Aptos as the Solana Killer. While this is true, the position Solana holds in the crypto industry remains unchallenged by the new blockchain. The market capitalizations of both companies are far apart: Solana stands at $8 billion, while Aptos is at $2 billion.

Solana’s average TPS is currently over 3,500 TPS, while Aptos hovers around 9 TPS. The gap between both ecosystems seems wide, but Aptos’ potential may propel it above the infamous “Ethereum killer.”

Ethereum

Aptos pales in comparison with Ethereum. Being the second-largest cryptocurrency makes Ethereum’s network a more solidified network. It surpasses Aptos in numbers, ecosystem, transactions, and assets. The new chain can only hope to reach Vitalik’s lofty heights in the near future.

Conclusion

The Aptos network is a new and interesting project on the blockchain. It promises to be the fastest and safest blockchain by minimizing barriers to entry and ensuring block safety.

The project isn’t reinventing the wheel. It’s only scaling and solving existing blockchain problems. With its Move programming language and high TPS, it appears the high influx of users is justified. Will it grow into an enviable technology and ecosystem? Only time will tell.