What is Aptos (APT)?

Aptos is a Layer 1 blockchain designed for the secure and scalable development of decentralized applications (dApps).

Aptos serves a range of use cases, including decentralized finance (DeFi), non-fungible tokens (NFTs), payments and gaming.

Aptos leverages smart contracts written in the Move programming language to create dApps and execute complex, autonomous agreements on its network. The Move ecosystem contains a compiler, a virtual machine, and various developer tools. 

Aptos’ native token, APT, is classified as an infrastructure token. These types of projects focus on enhancing the functionality, efficiency, and security of blockchains (in this case, Aptos) and their dApps. 

More specifically, Aptos falls under the Layer 1 token category and seeks to cover network transaction fees associated with using applications on the Aptos blockchain and for on-chain governance.

Holders can also stake their tokens with validator nodes to earn rewards, or delegate their tokens to a preferred validator. 

Kraken offers APT, as well as 250+ other types of cryptocurrencies.

Aptos is a blockchain platform built to deliver scalability, security, and reliability, addressing the common constraints of earlier blockchain technologies. The project leverages several advanced technical features to optimize performance and enhance user experience. 

Here’s an overview of its key components:

• Consensus Protocol: Aptos uses its own Byzantine Fault Tolerance consensus mechanism (AptosBFT) designed for high throughput and fast transaction validation (more below).

• Parallel Transaction Execution Engine: Unlike traditional blockchains that employ serial transaction execution (executed one after another), Aptos executes transactions concurrently to enhance processing efficiency.

• Move Programming Language: A safe and adaptable language for developing dApps on Aptos, emphasizing security and flexibility.

• Aptos Framework: Provides developers with tools and libraries to build secure and scalable applications.

Aptos is a smart contract platform that leverages its proprietary consensus protocol and a parallel execution engine to improve its scalability and reliability.

Here's a closer look at its key features:

• AptosBFT: The consensus mechanism powering the Aptos network is designed with Byzantine Fault Tolerance principles, ensuring the network remains operational and secure even if 1/3 of validators act dishonestly.

• Parallel execution: Aptos uses a parallel execution engine to enhance transaction speed by executing transactions concurrently and validating them later, eliminating the need for upfront processing. This approach, combined with the Move virtual machine and various other optimizations, significantly improves throughput.

• Quick transactions: Aptos’ transaction speeds enable it to process thousands of transactions per second, making it an ideal environment for real-time applications like gaming and high-frequency trading on decentralized exchanges (DEXs). In fact, Aptos can theoretically handle up to 100,000 TPS (transactions per second) and aims to bring the network to around 1 million TPS.

Aptos aims to solve the blockchain trilemma—the challenge of balancing security, scalability, and decentralization reliably—a problem that often plagues existing blockchains and limits their applicability for large-scale adoption.

Aptos employs a modular design for transaction processing, allowing concurrent operations for transaction dissemination, block metadata ordering, parallel execution, batch storage, and ledger certification. 

Aptos’ consensus mechanism and parallel execution engine are designed to improve transaction throughput without compromising on security or decentralization.

This focus on scalability means Aptos can support a wide range of applications, from DeFi and NFTs to gaming and social media. Moreover, Aptos aims to simplify blockchain development and the end-user experience, making it more accessible for developers and the people that interact with the protocol. 

Aptos (APT) is a cryptocurrency that can be used on the Aptos network to pay for transaction fees and earn rewards for helping to secure the blockchain network via staking.

APT holders can also participate in governance over the Aptos ecosystem.

Someone may wish to purchase APT for the following reasons:

• Participate in protocol governance: APT is used to empower the community to actively participate in the decision-making process of its protocols, ensuring a more democratic and inclusive approach to project management. 

• Stake APT: staking allows APT owners to earn potential rewards by actively participating in the validation of transactions. 

• Pay for transaction fees: These fees compensate validators for their work in processing and verifying transactions.

• APT can be sent to other users as a medium of exchange or to transfer value across the Aptos network.

Aptos was launched in October 2022 by founding members Mo Shaikh and Avery Ching.

Aptos Labs, the team behind the Aptos blockchain, is based in the United States, with a global team contributing to the project's development. Aptos is also supported by the Move Developers DAO, a community of developers building on the Aptos Network. 

Key founders

 Mo Shaikh

• Title: Co-Founder and CEO of Aptos

• Background: Mo Shaikh has a background in strategic leadership and project management within the blockchain space. Before co-founding Aptos, he was part of the team at Facebook working on the Diem blockchain project. His experience at Diem involved overseeing strategic initiatives and collaborations, which equipped him with critical insights into building scalable and secure blockchain technologies. Shaikh's expertise lies in his strategic vision and leadership, steering Aptos towards addressing the blockchain trilemma problem.

• Contributions to Aptos: Shaikh is primarily responsible for the overall strategic direction of the company, business development, and building a strong culture within the team.

Avery Ching

• Title: Co-Founder and CTO of Aptos

• Background: Avery Ching's professional journey is marked by a strong technical foundation in software engineering. He also worked on Facebook’s Diem project, focusing on the technical aspects of blockchain architecture and performance. Ching has a deep technical expertise in building scalable infrastructures, having contributed significantly to several large-scale distributed systems prior to his blockchain endeavors.

• Contributions to Aptos: Ching leads the technical development of the Aptos blockchain, focusing on innovations like the Move programming language and the parallel execution engine that form the backbone of the platform. His role involves ensuring the blockchain not only achieves high throughput and efficiency but also maintains robust security and developer friendliness. Ching’s contributions are critical in realizing the technical goals of the Aptos platform, making it capable of handling the high demands of modern applications.

To fund the launch and development of the platform, the Aptos team raised capital from external investors:

July 25, 2022

• Amount: $150M.

• Investors: Jump Crypto, Apollo Global Management, Griffin Gaming Partners, among others.

March 28, 2022

• Amount: Undisclosed.

• Investors: Binance Labs.

February 24, 2022

• Amount: $200M.

• Investors: FTX Ventures, Andreessen Horowtiz, Coinbase Ventures, Katie Haun, among others.

September 19, 2022

• Amount: Undisclosed

• Investors: Bixin Ventures

Further, the Aptos Foundation is participating in Google Cloud's Web3 startup program with the aim of supporting the development of essential infrastructure for the future of Web3.

Aptos has a maximum supply limit of 1,090,000,000 APT digital assets distributed as follows:

• Ecosystem: 556,118,000 APT for ecosystem projects, grants, and community initiatives.

• Team: 207,100,000 APT distributed to Aptos Labs.

• Aptos Foundation: 179,850,000 APT  for foundation initiatives.

• Private investors: 146,932,000 APT distributed to investors in the Aptos Labs. private financing rounds and wished to acquire tokens.

While 13% were unlocked at genesis, the remainder follows specific vesting schedules. 

For the ecosystem tokens, APT’s distribution timeline spans over 10 years, with a gradual release of tokens every month (1/120 of the remaining tokens per month). 

For core contributors (team and Foundation) and investors, there's a four-year lock-up period starting from the mainnet launch. Initially, no tokens are available for the first 12 months, followed by a faster unlocking schedule in months 13-18 (3/48ths of the tokens), and then a gradual release (1/48th of the tokens) until all tokens are fully unlocked after four years.

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