What Is Aptos (APT)? Everything You Need to Know

What is Aptos (APT)?

Aptos (APT) is the native cryptocurrency of the Aptos blockchain, a layer-one blockchain developed by Aptos Labs. Initially conceived as part of the Diem project by Meta, Aptos came into existence after Meta abandoned Diem in January 2022. The team behind Diem continued their work, resulting in the creation of Aptos.

Key Features of Aptos

Development Background

Aptos is the successor to the Diem project, originally started by Meta (formerly Facebook). After Meta discontinued Diem, the team continued its development, culminating in the Aptos blockchain.

Blockchain Features

Aptos employs a Proof-of-Stake (PoS) consensus mechanism and introduces a new smart contract programming language called Move. It aims to deliver a scalable, secure, reliable, and upgradable network for decentralized applications (dApps).

Key Innovations

Parallel Execution: Aptos processes transactions simultaneously, unlike traditional blockchains that process them sequentially. This innovation allows for higher throughput and lower latency.
Move Language: The Move language, along with its formal verifier, the Move prover, enhances security by providing additional safeguards for smart contract invariants and behavior.
Modular Architecture: Aptos' modular design supports client flexibility and optimizes for frequent and instant upgrades, enabling rapid deployment of new technological innovations.

Tokenomics

APT Token: APT is used to pay for transaction and network fees on the Aptos blockchain. It also serves as a governance token for voting on updates within the Aptos ecosystem.
Circulating Supply: The total supply of APT is 1 billion, with a portion currently in circulation. The circulating supply is expected to gradually increase over the years.

Ecosystem Growth

The Aptos ecosystem has experienced a rise in TVL, reaching a record high of $1.29 billion. This growth signifies increased user engagement and confidence in the platform.

How Does Aptos Work?

Explore the workings of Aptos, a cutting-edge Layer 1 blockchain, designed to deliver unparalleled scalability, security, and reliability. Here's a step-by-step breakdown of its operational mechanisms:

⚡ Scalability

Aptos can process up to 160,000 transactions per second (TPS), making it one of the fastest blockchains in the world. This is achieved through its innovative Block-STM technology, which allows multiple transactions to be executed concurrently.

💻 Programming Language

Aptos utilizes the Move programming language, initially crafted for Meta’s Diem project. Move's security and flexibility enable developers to define custom resources and enforce strong behavioral guarantees, boosting both security and functionality.

🔐 Consensus Algorithm

The blockchain relies on the AptosBFT consensus algorithm, which ensures reliability even amidst malicious nodes. This Byzantine Fault Tolerance (BFT) mechanism significantly enhances the blockchain's security and resilience.

🪙 Staking and Validator Roles

Aptos employs a Proof-of-Stake (PoS) mechanism where users stake coins to participate in consensus. The validator's vote weight correlates with their stake. The system involves roles such as Owner, Operator, and Voter to secure delegation and facilitate staking services.

⏳ Epochs

In Aptos, an epoch lasts for 7200 seconds (two hours), during which validators vote on blocks, update the validator set, and distribute rewards.

🔑 Keyless Accounts

Aptos Keyless allows dApps to derive and access blockchain accounts for users signing in via OIDC providers like Google. These accounts are scoped to specific dApps, ensuring privacy and security.

🔗 Interoperability

The LayerZero bridge enables seamless asset and message transfers between Aptos and other major blockchains. This omnichain protocol uses oracles and relayers for secure communication across chains.

💼 Wallet Integration

Aptos wallets like Petra Wallet and Trust Wallet offer secure, user-friendly interfaces for managing Aptos tokens, interacting with dApps, and engaging with the broader ecosystem.

Use Cases of Aptos

Scenario 1: DeFi and TradFi Applications

Scenario Description: Aptos supports decentralized exchanges (DEXs), stablecoins, and financial tools, bridging traditional finance with DeFi.
Challenges: Integrating legacy financial systems with new decentralized finance models can be complex.
Solutions: Aptos offers high-performance services for DEXs, hosts stablecoins like USDT, and supports financial tools like Mastercard’s Crypto Credential.
Results or Benefits: Users experience seamless transactions and innovative financial services, enhancing both traditional and decentralized finance sectors. 🚀

Scenario 2: NFT Ecosystem

Scenario Description: Aptos enables efficient NFT minting, trading, and marketplace development.
Challenges: Ensuring smooth integration of NFTs with traditional industries can be challenging.
Solutions: The platform supports NFT-specific utilities like smart ticketing and the creation of NFT marketplaces.
Results or Benefits: Users enjoy efficient minting and trading, bridging NFTs with mainstream industries. 🎨

Scenario 3: Gaming

Scenario Description: Aptos provides a fast, cost-effective platform for gaming applications.
Challenges: Gaming applications require high speed and responsiveness.
Solutions: Aptos supports instant finality and high responsiveness, along with secure in-game asset management.
Results or Benefits: Gamers benefit from a responsive experience and secure asset management. 🎮

Scenario 4: Web3 Infrastructure

Scenario Description: Aptos facilitates the integration of Web3 with traditional finance and industries.
Challenges: Large-scale integration with existing systems is complex.
Solutions: Aptos aims for decentralized cloud infrastructure, promoting Web3 adoption.
Results or Benefits: Enterprises and governments benefit from seamless Web3 integration. 🌐

Scenario 5: General Use Cases

Scenario Description: Aptos enhances transaction execution, upgradeability, and smart contract security.
Challenges: Maintaining performance without sacrificing security and atomicity is crucial.
Solutions: Using parallel execution and the Move language, Aptos ensures efficient and secure operations.
Results or Benefits: Users experience high throughput, secure transactions, and seamless upgrades. 🔒

Why Choose Aptos for These Use Cases

Aptos offers robust scalability and security, essential for diverse applications.
Its modular architecture supports seamless upgrades and high-performance operations.
The platform bridges traditional finance with blockchain innovations, enhancing usability and adoption. 🌟

Pros of Aptos

Scalability

Aptos is designed to handle transactions in parallel, significantly increasing efficiency and lowering latency. This makes it highly scalable and capable of supporting a high volume of transactions without compromising performance.

Innovative Technology

Utilizing the Move programming language, Aptos enhances efficiency and flexibility, offering a robust platform for various applications. This innovative technology is key to its adaptability and performance.

Strategic Partnerships

Aptos has established partnerships with top-tier companies, ensuring its technology has real-world applications and the potential for widespread adoption. These collaborations strengthen its market presence and technological integration.

High Liquidity

The platform has experienced substantial growth in total value locked (TVL), reaching $1.31 billion, and has bridged a total of $6.69 billion in value. This indicates strong liquidity and a healthy financial ecosystem.

User Adoption

Aptos boasts a high number of daily active users (1.2 million) and monthly active users (9 million), with a baseline rate of around 700,000 daily active wallets. Such user engagement demonstrates its popularity and usability.

DeFi and TradFi Integration

The platform supports various DeFi protocols and has been adopted by traditional finance (TradFi) clients like Franklin Templeton and BlackRock for tokenization tests, highlighting its versatility and integration capabilities.

Advanced Cryptographic Capabilities

Aptos offers robust cryptographic functionalities through Move, including economic gas usage, type-safe APIs, and the ability for developers to build custom cryptographic primitives, enhancing security and innovation.

Cons of Aptos

High Expense-to-Revenue Ratio

Aptos operates at a loss due to its high expense-to-revenue ratio, which is higher than other Layer 1 chains. This financial challenge could impact its long-term sustainability.

Dependence on App Success

The chain's growth is heavily dependent on the success of its applications to draw in liquidity. This reliance on external factors may hinder consistent growth.

Limited Ecosystem

Being a non-EVM compatible chain, Aptos faces challenges in raising liquidity compared to EVM-based chains. This limitation could restrict its ecosystem's growth and integration capabilities.

Token Release

Only 42.86% of the APT token supply has been released for circulation, potentially impacting token value and stability. The limited token circulation may affect investor confidence and market dynamics.

Early Stage Development

Despite its growth, Aptos is still in the early stages of development, with ongoing token releases and high operational costs. As a developing project, it faces inherent risks and uncertainties.

Is Aptos Right for You?

Deciding whether Aptos is suitable for you involves considering its scalability and innovative technology against its financial challenges and developmental stage. Ideal for developers and companies seeking cutting-edge blockchain solutions with strategic partnerships, Aptos might not be the best choice for those concerned with early-stage risks or looking for an extensive ecosystem immediately.

Summary Table: Pros and Cons of Aptos

Pros	Cons
Scalability	High Expense-to-Revenue Ratio
Innovative Technology	Dependence on App Success
Strategic Partnerships	Limited Ecosystem
High Liquidity	Token Release Issues
User Adoption	Early Stage Development

Where to Buy and Sell Aptos (APT)?

At the moment, Aptos (APT) is not available for purchase or trading on Coins.ph. However, you can still explore a wide range of other cryptocurrencies that we offer, with the same trusted service, high security, and fast transactions you’ve come to rely onWe are always working to expand our offerings, so stay tuned for updates on when APT will be available.

Get Started

How to Buy Crypto on Coins.ph?

Via Coins Pro, BSP Licensed Spot Exchange:

Step 1: Log into your Coins Pro account and click [Balance].
Step 2: Select the currency you want to deposit, click on [Deposit] and enter your desired cash-in amount.
Step 3: Select trading pair and enter the [Order Quantity] you would like to trade.
Step 4: Click Buy or Sell to place your Limit and Stop Orders.
Step 5: Wait for your order to be filled.

Buy Crypto on Coins Pro!

Disclaimer: The information and publications in this article are not intended to be and do not constitute financial advice, investment advice, trading advice, or any other advice or recommendation offered or endorsed by Coins.

Join the Coinmunity

Connect with like-minded crypto enthusiasts! Be the first to learn about our news and campaigns.

Join us on:

Twitter: https://twitter.com/coinsph
Discord: https://discord.com/invite/coinsph
Telegram (Announcements): https://t.me/coinsph_announcements
Telegram (Community): https://t.me/coinsphfilipino
Instagram: https://www.instagram.com/coinsph/
Facebook: https://www.facebook.com/coinsph/
TikTok: https://www.tiktok.com/@coinsph_official
YouTube: https://www.youtube.com/coinsph