• Thu. May 23rd, 2024

What is Aptos, and How Does it Work?

Louise Villalobos

ByLouise Villalobos

Apr 26, 2024
What is Aptos, and How Does it Work?

More and more Web3 developers have continued to launch blockchains in recent years, promising to address the issue of scalability and security. One of the recently rolled-out chains is Aptos. Before using Aptos, we recommend reading this guide to understand everything about the blockchain.

Exploring Aptos

Aptos is a top layer-1 blockchain built using Meta’s Move programming language, which was part of the Libra project that failed to launch due to stiff opposition from US lawmakers. Aptos hit the market in October 2022. Within a few months into its launch, the crypto project attracted several leading venture capitalists, raising over $300 million. Aptos adopts a consensus mechanism called AptosBFT to process transactions. It has three major components: Move module, Move language, and Aptos data model.


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The Team Behind Aptos

Aptos was created by tech gurus Avery Ching and Mo Shaikh, who are former Meta employees previously tasked with overseeing the Libra project. When Meta, the firm behind social media apps like WhatsApp, Facebook, and Instagram, discontinued its crypto project, Libra, Ching and Shaikh partnered to establish Aptos Labs, the company that now oversees Aptos operations.

Aptos Labs’ team is comprised of developers, engineers, and strategists located in various countries. The team announced in February 2024 that Aptos had the ability to process 30,000 transactions per second.

How Aptos Works

Since the Aptos structure is built using the Move programming language, the blockchain is able to adopt the Block-STM parallel execution engine, which boosts its transaction processing speeds.

Node operators must stake Aptos’ native token APT to validate transactions. As of April 2024, each potential validator must stake a minimum of one million APT tokens to get started.

Aptos Bridge

It is now easy for crypto users to move their tokens to Aptos, thanks to the launch of a bridging platform. The Aptos bridge allows a seamless transfer of tokens like ETH and USDT from other top blockchains, such as BNB Chain and Ethereum.

The APT Token

APT entered the market in October 2022. Three months later, the token hit its all-time high of $19.34. However, the bears seized control from the bulls in early 2023, dragging APT to $8.56 at press time.

According to data from CoinMarketCap, the Aptos native token has a market capitalization of $3.756 billion, making it the 24th largest cryptocurrency.

Stakeholding and Distribution

The total supply of APT stands at one billion tokens. Here is how the Aptos team distributed the token:

1. The community received a 51% token allocation. The funds are intended to support all initiatives to expand the Aptos ecosystem.

2. Core contributors who developed Aptos were given 19% of the total APT supply.

3. The Aptos Foundation created to support the long-term development of Aptos, was allocated 16.5%.

4. Early investors who saw Aptos’ potential before the project went live received 13.48% of the one billion APT tokens.

APT’s Use Cases

APT serves two major purposes, including:

Governance: Holders of APT have the right to vote on proposals that affect the future of the Aptos ecosystem.

Transaction fees: All transactions on Aptos attract network fees, which users pay in APT tokens. These fees are part of the validators’ revenue.

Where to Buy APT

APT is available on several reliable centralized exchanges. If you want to buy it, here are the trading platforms to consider:

OKX

This centralized exchange is known for its commitment to keeping user funds safe. It stores client deposits in cold wallets and supports multi-factor authentication. Moreover, OKX enables users to purchase USDT using various methods. The USDT token can be used to buy APT at a trading fee of 0.1%.

KuCoin

KuCoin is appreciated by many novice crypto users for its simple interface that facilitates easy buying of cryptocurrencies like APT. Like OKX, Kucoin charges a 0.1% trading fee. In addition, you can stake your APT on this centralized exchange to earn yield.

It is worth mentioning that APT is as volatile as any other digital token. Therefore, investing an amount you do not mind losing is advisable.

Louise Villalobos

Louise Villalobos

Louise Villalobos is an adept writer, renowned for her compelling articles that illuminate and engage. Her prowess in breaking down intricate subjects provides readers with clarity and nuance. With a vast and varied portfolio, Louise has solidified her standing as a distinguished voice in contemporary journalism.