• Transaction speed on blockchain is lagging behind
• Blockchain Aptos wants to address challenges – parallel processing of transactions
• Will Aptos become the “Solana Killer”?
Blockchain scalability remains a problem
Currently, the transaction speed of cryptocurrencies is far from what other payment methods can achieve. While the credit card giant Visa can process 24,000 transactions per second (TPS), Bitcoin only handles seven and Ethereum 20, crypto.com reports. Only Ripple can overtake the payment service provider PayPal (193) with 1,500 transactions per second, but is still far behind Visa.
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And so the market is looking for the necessary infrastructure that can withstand the requirements of financial applications. Venture capital firms have enthusiastically taken a look, according to CoinDesk, and hundreds of millions of dollars have been pledged to build faster blockchains. For example, Jump Capital has doubled its commitment to Solana, which was temporarily traded as an “Ethereum killer”. In addition, Jump Capital, FTX and a16z have also invested in a new blockchain project that could now potentially become the “Solana killer”: Aptos.
billion valuation
Aptos Labs was founded by two former Meta employees, Mo Shaikh and Avery Ching, and, as CryptoTicker reports, first caused a stir in March this year when the company received $200 million in a first round of funding from venture capital firm Andreessen Horowitz . In July, Aptos raised an additional $150 million in another round of funding that also included previously mentioned Jump Capital, FTX and a16z. The company was valued at $1.9 billion at the time, according to CryptoTicker, up from $4 billion in a funding round led by Binance Labs in September.
Aptos was criticized at the start
Mainnet then went online on October 17th. However, the crypto community did not react as positively as hoped to the release of the blockchain and the APT token. According to BTC-ECHO, both the team’s Facebook past and a lack of transparency and access for retail investors brought Aptos criticism. As CryptoTicker reports, Aptos had not previously published its offer, the distribution of the tokens or the issue price. However, after the company apologized and released the data, some investors were upset that almost the entire offering was given to early investors and the company itself. In response, Aptos distributed APT tokens as a reward to early testers of the network – there was an initial airdrop of 150 APT tokens, reports BTC-ECHO.
In addition, the company had to deal with accusations from critics about the speed of transactions. However, the team explained in a post on the Aptos Discord, as reported by CoinDesk, that the transactions displayed per second are a “function of network activity” and that there are no user transactions yet after mainnet activation was announced just hours before – these should start the following day.
Aptos wants to tackle challenges
But even if Aptos’ start was not optimal, the blockchain company Aptos Labs has recognized the problems of the blockchain, such as frequent failures, high costs, low throughput limits and numerous security concerns and wants to offer solutions for them. “To enable mass adoption in the Web3 era, blockchain infrastructure must follow the path of cloud infrastructure as a trusted, scalable, cost-effective, and continuously improving platform for building widespread applications,” the company writes in its new layer white paper -1 blockchain, Aptos, “designed with scalability, security, reliability, and upgradability as key principles to address these challenges.”
Apto’s Layer 1 blockchain is based on the Proof-of-Stake mechanism. According to Aptos Labs, the blockchain has been developed by more than 350 programmers around the world over the past three years and features new innovations in consensus, smart contract design, system security, performance and decentralization. According to the company, the combination of these technologies will provide a fundamental building block to make Web3 suitable for the masses.
Aptos uses a novel smart contract programming language called Move, which CryptoTicker says offers parallel processing of transactions. “We have designed and implemented a highly efficient, multi-threaded, in-memory parallel execution engine capable of executing over 160,000 non-trivial Move transactions per second by leveraging transaction default ordering and software transactional memory techniques with a novel cooperative schedule,” the company said in April of this year. According to the company, the Aptos data model also offers flexible key management and hybrid storage options. The Aptos blockchain also uses “a pipelined and modular approach to the key stages of transaction processing to achieve high throughput and low latency.” The company explains in the Aptos blockchain white paper: “In particular, transaction propagation, block metadata ordering, parallel transaction execution, stack storage, and ledger certification all happen simultaneously. This approach fully utilizes all available physical resources, improves hardware efficiency, and… enables highly parallel execution.”
Is Aptos becoming the “Solana Killer”?
Aptos probably owes the name “Solana Killer” to its efforts to increase transaction speed and thus scalability on the blockchain. With its proof-of-history algorithm, Solana also follows the concept of parallel processing of transactions in order to enable faster processing times and lower transaction costs. In view of the fact that Aptos was only recently launched and Solana is thus far ahead of the new competitor in terms of adaptation and distribution of the tokens, it is perhaps a little early to speak of the “Solana killer” Aptos. However, if the blockchain develops further in the coming months and the value of the ATP token increases, Aptos could actually become a serious competitor for Solana.
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