The history of Aptos begins with Diem (formerly known as Libra) which was Facebook Meta's failed digital currency project. Although Diem died in January 2022, some developers from Diem started their own crypto projects which are Aptos and Sui blockchain.
Aptos was founded in late 2021. Aptos is the name of an unincorporated town on the coast of California. Aptos reportedly means "the meeting of two streams" for the people in the indigenous language of the area but some sources suggest it means a meeting of two waters. Aptos was founded by Muhammad Sheikh and Avery Ching. Muhammad holds a Master's in Business Administration and his previous work experience includes Black Rock, the Boston Consulting Group, Ethereum builder consensus, and Meta. Avery holds a Ph.D. in computer science and spent most of his career working as a principal software engineer at Facebook, one of the highest positions in the company. Avery also worked at the Los Alamos laboratory in Nevada military research.
Aptos managed to raise 350 million dollars from various crypto VCS across two funding rounds. Binance made a strategic investment in Aptos Labs to expand its commitment to infrastructure building in September 2022. Aptos' mission is to unite web 2 and web 3 and it is working closely with Google. Aptos uses a delegated proof of stake blockchain like many modern cryptocurrencies. The team behind Aptos claims its blockchain is simultaneously scalable, fast decentralized, and secure; something that seems logically impossible due to the blockchain trilemma.
The Blockchain trilemma states that a cryptocurrency can only be decentralized and scalable, scalable and secure, or secure and decentralized. In Bitcoin's case for instance it trades scalability for security and decentralization.
How does Aptos Blockchain work?
The Aptos blockchain operations are primarily led by the superior technology narrative. Aptos is still under development to handle over 160k transactions per second using its parallel execution engine (Block-STM) which results in low transaction costs for users.
However, it currently only processes 7 transactions per second as opposed to the thousands that it claims. Aptos also became a meme for over-promising and under-delivering in its first week of trading. Regardless, it is too early to assess how it will perform in the future as the blockchain is still in its infancy.
Most blockchains execute smart contracts either sequentially or with the help of a massive parallel workload for improved performance, resulting in huge power consumption. Unlike other blockchains, a single failed transaction will not hold up the entire chain, instead, Aptos processes all transactions simultaneously and validates them afterwards.
The failed transactions are aborted and re-executed by its STM (software transactional memory) libraries which manage such conflicts in the network. As per its whitepaper, Aptos employs a flexible programming language “Move”, modified data sharding technology, PoS consensus mechanism, and a state machine to achieve a fast, scalable, and secure system.
Aptos’ state machine is the Move Virtual Machine (MVM) which is strikingly similar to Ethereum’s EVM (Ethereum Virtual Machine). MVM converts Move modules to bytecodes which are then executed by the Aptos blockchain. Move modules work just like Ethereum smart contracts. Move modules are code pieces that allow Aptos blockchain to sanction free-running transactions.
Source: Aptos White Paper
With this, Aptos has become the first blockchain to debut the Move language and the mainnet is currently using the latest version of AptosBFT (version 4).
In the future upgrade, Aptos labs will develop AptosBFT (version 5). BFT stands for Byzantine Fault Tolerance, which is a consensus protocol with responsive production optimization. This mechanism minimizes the impact of failed validators on throughput and latency, ultimately, boosting Aptos’ blockchain performance.
Until now, we have established that the underlying technology of Aptos holds untapped potential and can prove to be revolutionary if executed well. Now, let’s understand how its token $APT skyrocketed in no time and what the Aptos token actually is.
What is Aptos Token?
APT is the native token of the Aptos blockchain and is primarily used to pay for transaction and network fees on its platform. The Aptos blockchain charges a fee on all transactions on the network and is specified in Aptos tokens (APT).
Validators can prioritize the highest-value transactions on the Aptos network and discard transactions of lower value. This way, the blockchain operates efficiently when the system is at capacity. Over time, network fees will also be implemented, bringing the cost of utilizing Aptos into line with the cost of installing, maintaining, and running nodes.
To be a validator, you must hold a minimum number of staked $APT to participate in transaction validation. Being a validator has the advantage of deciding on the division of rewards between themselves and their respective stakers.
On the other hand, stakers can choose a number of validators to stack their Aptos tokens to get a pre-agreed split of rewards. As such, rewards are distributed to validators and stakers at the end of every epoch.
Currently, the maximum reward rate for stakers is around 7% per annum. The staking reward amount is evaluated at every epoch. The maximum staking reward will decrease by 1.5% per year until it reaches 3.25% per year, as mentioned in its whitepaper. Note that, all reward amounts and mechanisms can be changed by governance voting.
APT is a governance token, which can be used for voting on upgrades and proposals to the protocol and on/off-chain processes.
Initially, the tokenomics of APT were quite controversial as it was released without disclosing the total supply, distribution, and overall plan. Later in 18 Oct 2022 Aptos reveals its Tokenomics, which cleared the air in the crypto space.
Aptos mentioned, out of 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 the investors.
Aptos (APT) can be purchased at those big exchanges:
1. Binance Exchange- you can purchase on APT using your mobile phone or desktop. You only need to follow the step as instructed. You can also receive a 25% discount on trading fees using Binance Coin (BNB) instead of cash. Use the link above for a bonus 10% discount.
2. Kraken Trade Aptos (APT) and other cryptos and get 10% discount on trading fees using the link.
3. CoinBase is one of the most popular platforms because it is easy to use on your phone or tablet and is available in most countries. On CoinBase you will also find many of the top 100 coins. CoinBase will send email confirmations for another layer of security if you are using PC. CoinBase also can be used on your phone. When you join CoinBase you can get AUD 13.84 in free Bitcoin when you buy or sell AUD 138.41 or more, by using the above link.
After your purchase, if you would like to store the coins in offline devices for safety you can use Ledger
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For the Aussies: Coinstash is an Australian crypto exchange based in Brisbane. New users can get $10 free on signup using this link
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