Aptos is a Delegated Proof of Stake (DPoS) blockchain developed by former engineers from Meta's (formerly Facebook) blockchain project, Diem. Launched in October 2022, Aptos aims to achieve over 100,000 transactions per second (TPS) with sub-second latency. It offers developers a robust, fast, and adaptable environment through the Move programming language.

Traditional blockchain technology faces several limitations, such as inefficiencies in transaction processing and consensus mechanisms, as well as vulnerabilities with smart contracts. These issues hinder blockchain's scalability and security as an enterprise solution. Aptos addresses with several technical innovations:

Aptos has attracted significant attention due to early investments and the impressive backgrounds of its team, with over one-third hailing from Meta. These team members played pivotal roles in developing Move, the core language of the Diem project. Leveraging this technical expertise and extensive industry experience, Aptos delivers high-performance, reliable blockchain solutions for diverse applications. Acknowledging the team's technical expertise, Aptos has secured over $350 million in funding from renowned institutional investors like a16z, Tiger Global Management, Paxos, Jump Crypto, Multicoin Capital, and PayPal Ventures, ensuring continuous technological advancements and ecosystem expansion.

Aptos is transforming the Web3 experience by delivering consistent sub-second end-to-end (E2E) latency for all transactions. E2E Latency is the duration for a transaction to be submitted by a user and acknowledged as irrevocably finalized on a blockchain. This includes the time it takes for the transaction to reach the validators, achieve consensus, validate and execute the transaction, and provide the transaction confirmation back to the user. This metric is crucial for user experience, as it signifies the final confirmation of transactions on the blockchain.

Aptos is the fastest blockchain to consistently achieve sub-second E2E latency for all transaction types (Source: Aptos)

Aptos prioritizes minimizing this latency, consistently demonstrating sub-second latency in benchmark tests, particularly in Asia. This low latency ensures that applications requiring rapid transaction confirmations, such as decentralized exchanges (DEXs) and RPG games, operate reliably without compromising chain performance, significantly enhancing the user experience.

Aptos' improvement on E2E latency distinguishes it technically from other blockchains. For instance, while Solana boasts high-speed transaction processing, it is susceptible to network downtimes. Aptos, in contrast, processed 115.4 million transactions in a single day through the click-to-play game "Tapos," vastly outperforming Solana's 31.7 million transactions without network downtime.

Compared to Sui, another Layer 1 blockchain using Move, Aptos also excelled in E2E latency tests. Sui recorded latencies of 1.92 seconds on the "fast path" and 4.35 seconds on the "slow path," whereas Aptos consistently maintained a sub-second latency of 0.95 seconds, showcasing its capability to handle enterprise-grade, high-volume transactions. As a latecomer chain, Aptos has had a limited range of use cases, with enterprises hesitant to adopt it due to the Move language and the new consensus algorithm in its monolithic chain architecture. To address these issues, Aptos is working to expand its ecosystem by improving chain performance and offering a variety of enterprise solutions, as detailed in the following section.

Aptos Ascend (Source: Aptos)

Aptos Ascend is a customizable blockchain solution developed by Aptos Labs, designed to provide financial institutions with a robust financial infrastructure on a public blockchain. Developed in collaboration with key technology and business partners such as Microsoft, Brevan Howard, SK Telecom, and Boston Consulting Group (BCG), Aptos Ascend is anticipated to enhance real-world adoption by ensuring reliability and regulatory compliance.

The integration of Microsoft Azure’s cloud computing capabilities and Azure OpenAI Service’s AI technology enables financial institutions to offer effective digital asset management and currency services. SK Telecom’s Web3 technology ensures secure and efficient digital asset management, while Brevan Howard’s market investment expertise aids in the proper management of financial products and strategic investment decisions. BCG contributes strategic insights and a roadmap for digital transformation, enabling financial institutions to stay ahead of market changes.

Aptos Ascend is built on the public Aptos blockchain but includes private capabilities to meet the access control requirements of financial institutions and audit institutions. Its access management capabilities allow financial institutions and companies to restrict transactions to authorized groups and individuals, ensuring the transparency and security of a public blockchain, while offering the customization and data security of a private blockchain.

Previous public monolithic chains have posed challenges for financial institutions due to their inability to provide customizable and private environments. Aptos Ascend addresses this by offering the necessary customized environment, allowing financial institutions to benefit from the public blockchain’s advantages while retaining the flexibility of a private blockchain. However, compliance remains an area to watch as regulatory compliance varies by country. Taking Korea as an example, the regulators’ main focus is on tokenized securities (STs) on private blockchains.

Key features of Aptos Ascend include built-in advanced KYC (Know Your Customer) and AML (Anti-Money Laundering) protocols to help institutions operate within a global regulatory framework. It also utilizes Zero Knowledge Proof technology to safeguard user and transaction details. This authorized network access allows financial institutions to customize the system to meet their business needs and regulatory requirements, improving their digital asset management and compliance capabilities with Aptos Ascend.

Aptos employs a smart contract language built on Move, derived from Rust but simplified to enhance usability. Designed to facilitate entry for system and network programmers, as well as game developers accustomed to Rust or C++, Move offers a more expressive and intuitive way to handle ownership and access restrictions compared to Solidity. For an in-depth exploration of Move, please refer to the Xangle reports below.

The development process with Move is streamlined by a variety of SDKs and tools. Aptos offers SDKs for TypeScript, Python, Rust, Unity, Go, and more, enabling developers to integrate their dApps using familiar languages and tools. These SDKs support crucial functions such as connecting wallets, processing transactions, and issuing tokens, providing comprehensive examples for front-end and back-end integration. The Aptos Move Compiler and VS Code Extension further simplify development with Move.

Token standards in blockchain are essential for ensuring universal applicability across ecosystems and securing asset issuance and distribution using proven code. Aptos, leveraging the innovative Move language, has developed an array of tools that enable developers to seamlessly create token standards and smart contracts. On the Aptos platform, smart contracts are crafted using Move modules and scripts. Since 3Q23, Aptos has supported a dynamic token ecosystem through its Digital Asset Standard, encompassing NFTs, Fungible Tokens (FTs) for digital assets, and business-critical tokens such as airdrops and Soulbound Tokens (SBTs).

Moreover, Aptos has proposed and implemented essential blockchain service features such as On-Chain Randomness, Multisig, Keyless Account, Sponsored Transactions, Transaction Management, and Account Key Rotation. These tools, available through CLI, SDK, and API, were developed based on community feedback via AIP. On-Chain Randomness, for instance, facilitates NFT random minting and game item selection by providing immediate pure random values through API calls. Multisig, transaction management, and account key rotation help enterprises efficiently manage administrative privileges within DApps.

In summary, Aptos provides a secure and user-friendly development environment based on the Move language, offering a comprehensive suite of tools to help developers unfamiliar with Move quickly get up to speed. Aptos’s responsive development ecosystem, supported by thorough documentation and examples, enables rapid dApp deployment, allowing enterprises to focus on core business development and achieve milestones efficiently.

Aptos is introducing several technical innovations to facilitate the seamless transition of Web2 users to Web3 environments. Keyless Account and Sponsored Transactions are pivotal features designed to simplify user experiences, eliminating the need to create wallets that require traditional secret keys and acquire native tokens to pay gas fees when interacting with dApps. These features are critical for enterprises targeting mass adoption of Web3 technologies.

Aptos Keyless allows users to gain ownership of an Aptos blockchain account from their existing social login, allowing immediate access to their accounts and dApps without the need for users to grapple with the intricacies of private key management. This solution lowers the barriers traditionally associated with non-custodial wallets, such as MetaMask. By allowing users to create and access wallets using common social sign in options such as Google and Apple, Keyless Accounts offer a simplified login user experience, secure key management, improved account recovery, and seamless cross-device experiences. Integration is straightforward, with the Aptos Keyless SDK directly incorporable into dApps or through wallets like Aptos Connect that support Keyless Account creation.

Sponsored Transactions allow users to interact with dApps without purchasing native tokens to pay the fees associated with executing a transaction. Instead, another account covers the fees required to execute the transaction, a concept also known as Meta Transactions or Gasless Transactions. This removes user onboarding friction and enhances cost efficiency by allowing applications to absorb all fees incurred during interactions between users and dApps. Aptos provides comprehensive examples and development tools, available through its TypeScript, Python, and Rust SDKs, enabling developers to easily implement Sponsored Transactions without complex programming or the need to build their own gas payment servers.

Aptos offers foundational infrastructure, including support for Move language-based smart contracts, explorers, wallets, bridges, and essential features like oracles, token holder verification, payment processing, and token distribution platforms through UI, APIs, and libraries. This ecosystem facilitates developers in creating their own products, with continuous expansion of tooling through in-house development and grants. Strategic partnerships with Microsoft, Google, and Alibaba further enhance global accessibility and expand the Web3 ecosystem by leveraging AI, cloud services, and diverse tooling to deliver more benefits to developers and users.

Aptos X Microsoft - Aptos Assistant (Source: Aptos)

The collaboration between Aptos and Microsoft focuses on merging blockchain technology with AI to broaden Web3 accessibility. Utilizing Microsoft's Azure OpenAI service, Aptos has launched Aptos Assistant, an AI chatbot which helps users navigate Web3 using natural language queries, similar to services like ChatGPT. Moreover, Aptos-based validators and DApp deployments can operate on Azure cloud infrastructure, simplifying DApp development and management by alleviating infrastructure management complexities. This collaboration extends beyond a single initiative, continuing the AI and cloud integration efforts initiated by Aptos Ascend.

Google Cloud X Aptos (Source: Aptos)

With Google Cloud, Aptos enhances the Web3 game development experience. Together, they have launched Aptos GameStack, providing game developers with streamlined tools to create and connect blockchain-based games. Key features of Aptos GameStack include the Aptos SDK on the Unity Asset Store for minting and distributing NFTs , and integrating wallets, allowing developers seamlessly incorporate necessary elements into their game builds. Other collaborative efforts include support for Aptos Validator and BigQuery on Google Cloud, accelerator programs, and joint hackathons.

In collaboration with Alibaba Cloud, Aptos is expanding its ecosystem in the APAC region through the Innovation Accelerator program and the Move developer community. Recent partnerships, such as the one with io.net, aim to bring transparency to AI-generated assets. These collaborations focus on providing practical tooling for dApp developers and a development infrastructure powered by cloud and AI technologies. The success of these partnerships signals a promising future for Aptos and its ecosystem.

Aptos collaborates with a diverse array of financial institutions to deliver Web3 solutions tailored to the traditional financial sector, fostering innovation within financial services. Co-founder Mo Shaikh, with his extensive background in traditional finance (TradFi) and regulatory environments—including roles in private equity and venture capital at BlackRock, and participation in the CFTC's Digital Assets Subcommittee—positions Aptos to provide regulatory-compliant and technically robust Web3 solutions. This expertise has attracted partnerships with industry leaders such as Mastercard, SK Telecom, and BCG.

Mastercard X Aptos (Source: Aptos)

In partnership with Mastercard, Aptos is co-developing the Mastercard Crypto Credential, an authentication standard and infrastructure to facilitate trusted interactions on blockchain networks. This collaboration aims to build on-chain identity and authentication tools atop Aptos to facilitate trusted services in payments, ticketing, and more.

SK Telecom and BCG are collaborating on the Aptos Ascend project, offering Web3 solutions tailored for global financial markets. Aptos Ascend leverages SK Telecom's Wallet-as-a-Service (T-Wallet), which includes KYC and AML features, aiding major financial institutions in providing compliant digital asset and currency management. BCG supports the project with its extensive experience in digital transformation within the financial sector, accelerating Web3 adoption in global financial markets.

Expanding its institutional DeFi solutions, Aptos has partnered with TruFin Protocol to offer institutional-grade Web3 primitives such as liquid staking, which mitigate risks, generate rewards, and securely manage digital asset strategies on-chain. TruFin has garnered over $50 billion in capital from retail and institutional investors by enabling multi-chain liquidity staking.

Through regulatory compliance and simplified technology integration, Aptos is facilitating Web3 onboarding for payments and tokenization of financial instruments (RWA, STO). Furthermore, the proposal to deploy Aptos Network in Aave V3, marking Aave's first expansion beyond the EVM ecosystem, has garnered significant interest and positive feedback from the community. This highlights the high liquidity and scalability of the Aptos ecosystem, signaling a promising future for broader adoption of Aptos' technology by financial institutions.

Aptos has made significant strides in the gaming industry, targeting applications across gaming, entertainment, and finance. Recognizing that 40% of the global population are gamers, Aptos sees Web3 as a unique opportunity to deliver digital-native experiences to a new generation. Web3 games offer immersive, transparent, and interoperable experiences within expansive game economies, addressing traditional gaming market challenges such as asset portability.

Considering the substantial on-chain activity in Web3 games, rapid transaction confirmation is crucial. Aptos has enhanced its consensus algorithm to deliver high TPS, managing the substantial transaction volumes occurring in real-time globally. With sub-second E2E transaction confirmation times, Aptos maximizes user experience. Moreover, Aptos provides game developers with comprehensive Move language tooling and SDKs, integrating blockchain with game engines like Unity and Unreal Engine, thereby significantly boosting game development productivity.

Aptos has released a development SDK for the Unity game engine, offering user-friendly examples and demo projects for gameplay features such as account creation, token transfer, and NFT minting. The ecosystem is rich with game tooling, both in-house and through third-party Move language tools, enabling game developers to leverage Aptos' technical advantages. Established infrastructure for marketplaces, oracles, and token transactions further supports the development of Web3 games. The GameStack collaboration with Google Cloud simplifies the integration of Web3 elements for game developers by providing endpoints for NFT minting, wallet connectivity, and development tools.

Supervillain Labs - IdleRPG (Source: Supervillain Labs)

Aptos' collaboration with NPIXEL, aimed at onboarding various Web3 services including Gransaga Unlimited, has brought significant attention to its capabilities in the gaming sector. Although the METAPIXEL project was discontinued toward the end of 2023, Supervillain Labs—comprising former NPIXEL team members—has continued the partnership with Aptos. This collaboration was made possible due to Aptos' superior technology and business support. Supervillain Labs is set to release mobile game Idle RPG featuring characters from Aptos’ NFT project and PC MMORPG PROJECT ARK. A recent test gained 10,000 users in six days, with nearly 100,000 users participating overall. During this period, Aptos demonstrated stable and reliable performance in real-world operations, including NFT trading and gaming transactions. Supervillain Labs secured $4.5 million in seed funding, led by Aptos Labs and IntellaX, to further its ambition of becoming a leading Web3 gaming company.

Aptos is committed to making blockchain technology accessible to a wide audience by onboarding real-world consumer products, extending beyond merely providing infrastructure. Aptos' seamless Web2 user onboarding, robust chain performance, and comprehensive development tooling and support have attracted major global enterprises.

Partnerships include global and Korean enterprises such as NBC Universal, SK Telecom, Lotte Daehong Planning, Seoul Land, and Deutsche Motors' Charancha. The partnership with NBC EUniversal is particularly significant, evolving from collaborations on two intellectual properties into a long-term agreement. The successful joint ventures on "Renfield," released in March 2023, and "The Exorcist: Believer," released in September 2023, have paved the way for further collaboration. NBCUniversal's subsidiaries, including DreamWorks and Peacock, are exploring Web3 technology applications, significantly broadening Aptos' influence.

Global enterprises are choosing to the Aptos ecosystem for its strong chain performance, the benefits offered by the Move language, and a range of features aimed at enhancing user experience. While Aptos does not boast a prominent dApp listed on DAppRadar, its longstanding partnerships with major enterprises highlight its potential to support these companies in establishing successful Web3 ventures. As Aptos continues to enhance its chain performance and development tools, adoption of its technology is expected to grow across diverse sectors.

Aptos has identified the Korean market as a strategic focal point. Announcing the opening of its third office in Seoul, following Palo Alto and New York, Aptos has expanded its support staff in Korea from one to three employees. This office will include a business development representative, a Partner Success Manager, and a Partner Software Engineer to ensure comprehensive business and technical support. The Aptos Foundation is highly optimistic about the Korean ecosystem, noting the active participation of significant Korean-based projects like Merkle Trade and Supervillain within the Aptos ecosystem.

Aptos also runs grant programs catering to a wide range of entities, from large enterprises to startups and small teams. These programs offer more than just financial support, providing technical assistance, networking opportunities, business prospects, and more to help grant recipients thrive within the Aptos ecosystem and the broader blockchain industry.

The Aptos Experience (Source: Aptos)

Aptos will host its first exclusive conference in Korea, The Aptos Experience, during Korea Blockchain Week (KBW). This event will offer Korean teams within the Aptos ecosystem a variety of promotional opportunities, including speaking engagements, panel participation, and exhibit booths, along with extensive internal networking and connections with top-tier VCs and decision-makers.

Aptos' on-chain performance in 2Q24 exhibited significant changes across several metrics, including token performance, network activity, security, and ecosystem dynamics. In terms of token performance, the price decreased by 57.23% quarter-over-quarter to $7.1, while market capitalization declined by 54.41% to $300 million, reflecting the volatility in the altcoin market.

Network activity surged, with average daily transactions increasing by 473.84% to 4.36 million, indicating a highly active network. The number of daily active addresses also rose by 15.59% to 134.66 thousand. Despite a 23.09% decrease in Total Value Locked (TVL) to $373.76 million, this decline is likely attributable to the falling token price.

On the security front, the number of validators grew by 3.70% to 140, maintaining network stability. However, the percentage of staked APTs slightly decreased by 0.22% to 874.4 million. In the ecosystem category, daily DEX trading volume saw a substantial increase of 162.40% to $27.29 million, indicating robust trading activity.

Aptos distinguishes itself from other monolithic chains with its sub-second transaction speeds and extensive enterprise adoption across diverse sectors such as finance, gaming, and retail. Aptos’ robust partnerships with industry leaders like Microsoft, the non-EVM integration with SK Telecom's T-Wallet, the migration of Lotte Daehong Planning's Bellygom project, and the long-term collaboration with NBC Universal underscore the reliability and advanced technology of the platform. Aptos Ascend offers tailored solutions for the financial sector, while an extensive array of SDKs and APIs empowers organizations to develop swiftly and achieve their milestones. In the Korean market, Aptos Ascend's dedicated local engineering support and the upcoming inaugural standalone conference, Aptos Experience, further cement Aptos as the premier partner for advancing the Web3 ecosystem. 2Q24 data reflects a vigorous network with a surge in average daily transactions and active addresses, despite notable volatility in price and market capitalization. Despite these fluctuations, the heightened network activity, coupled with long-term partnerships and technical excellence, positions Aptos for sustained growth and underscores its long-term potential.

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