Aptos: The Scalable Layer 1 Blockchain You Need to Know

Modified on Tue, 9 Sep at 11:35 AM

What is Aptos?

Aptos is a Layer 1 blockchain project focused on delivering a more efficient platform with scalability and developer-friendliness for decentralized applications (DApps) that can be used for payments and gaming.

Aptos Background

Aptos was started by developers from Meta's (formerly Facebook) blockchain project known as Diem (originally Libra). Diem aimed to create a stablecoin and blockchain network enabling global financial access. However, due to regulatory challenges and Meta's strategic shifts, the Diem project was shut down.

Following Diem's closure, former Meta developers Mo Shaikh and Avery Ching co-founded Aptos Labs in 2021. Their goal: to provide fair and equitable access to decentralized assets for everyone.

In October 2022, Aptos launched its mainnet, called "Aptos Autumn." It utilizes a programming language called "Move," which is designed for scalability and speed within blockchain applications. Aptos boasts a flexible architecture that allows for continuous upgrades to support new and evolving use cases in the increasingly complex world of Web3.

Currently (November 2024), Aptos supports decentralized finance (DeFi), non-fungible tokens (NFTs), GameFi, social media, entertainment, and artificial intelligence (AI) applications on its blockchain. It is believed that Aptos has the potential to attract over 8 million users worldwide.

DeFi list on Aptos Ecosystem - Source: Aptos Foundation

Who’s Behind Aptos?

Aptos Labs is the development team behind the Aptos project. It currently comprises a diverse team of developers, engineers, and strategists, led by co-founders Mo Shaikh and Avery Ching.

Shaikh and Ching first met while working on the Diem blockchain project at Meta. Shaikh has expertise in scaling products and experience in private capital markets and venture investing. Meanwhile, Ching was one of the lead software engineers at Meta and has led numerous exciting and innovative development projects in the past. After Meta decided to discontinue the Diem project, Shaikh and Ching joined forces to create Aptos Labs.

What is APT used for? And how is it distributed?

APT is the native token on the Aptos network. It is used for transaction fees and for staking to participate in transaction validation by validators. This allows validators to earn rewards and participate in the network's decision-making process, while also contributing to network security.

Here's how the initial 1 billion APT tokens were distributed:

Community: 51.02% (510,217,359.767 APT)
Core Contributors: 19.00% (190,000,000.000 APT)
Foundation: 16.50% (165,000,000.000 APT)
Investors: 13.48% (134,782,640.233 APT)

Further Distribution Details

In addition to the initial distribution, there's an ongoing allocation for the community and the Aptos Foundation. This is designated for ecosystem-related items such as grants, incentive programs, and other community development initiatives. Some tokens have already been allocated to projects on the Aptos protocol, with further distributions occurring as specific milestones are achieved.

The majority of these tokens, 410,217,359.767 APT, are held by the Aptos Foundation, and another 100,000,000 APT are held by Aptos Labs. These tokens are expected to be distributed over a 10-year period, as follows:

125,000,000 APT to support ecosystem-related projects, grants, and other community development initiatives, both current and future, for the community category.
5,000,000 APT to support Aptos Foundation initiatives within the Foundation category.
The remaining tokens are expected to be unlocked at a rate of 1/120 per month for both the community and the Aptos Foundation over the next 10 years.

Interesting Use Cases of Aptos

Aptos is a blockchain platform designed to support decentralized applications (DApps), games, and social media. It aims to provide a scalable, efficient, and secure infrastructure for developers to build high-performance applications.

Here are some of its key use cases:

Decentralized Finance (DeFi): Aptos is particularly well-suited for decentralized finance (DeFi) applications, such as lending and borrowing protocols, decentralized exchanges, and stablecoins. Its focus on security and speed makes it an attractive option for DeFi projects.
Institutional Finance: Aptos aims to provide scalability for financial institutions, enabling them to process high volumes of transactions efficiently and securely. Its infrastructure can be tailored to meet the specific needs of institutions.
Beyond DeFi: While DeFi is a strong focus, Aptos also supports a wide range of other applications, including:
- Gaming: Aptos can enable new types of gaming experiences with verifiable ownership of in-game assets and fast, low-cost transactions.
- Social Media: Aptos can power decentralized social media platforms that prioritize user privacy and data ownership.
- NFTs: Aptos provides a robust platform for creating and trading non-fungible tokens (NFTs).
- Aptos's flexibility and focus on performance make it a promising platform for a variety of Web3 use cases.

Interesting information about APT

According to Coinmarketcap data on 3 December 2024, the APT token has a market capitalization of USD 7,546,901,877, equivalent to 259,117,635,087 Thai Baht.

At the time of writing, the APT token is trading at approximately USD 14.13, or 483.90 Thai Baht per APT. APT reached its all-time high of USD 19.90, or 683.47 Thai Baht, on January 2023.

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