Aptos, being the most hyped blockchain of Q4 2022, launched its mainnet on 17 October 2022. Major cryptocurrency investors like a16z, Jump Capital, FTX Ventures, and Binance are among those who support Aptos. Since its beginnings, Aptos has been held in extremely high regard and has been dubbed the "Solana Killer."
The team behind the project is made up of former Meta workers who worked on Libra in 2019 before it changed its name to Diem. Political pressure forced Mark Zuckerberg's business to abandon the initiative. However, other programmers established Aptos after realizing the enormous potential of the technical foundations.
However, the launch was more than disappointing as numerous issues started to surface. In particular, the transaction per second and the transparency of Aptos's tokenomic. Let's talk about the controversies surrounding Aptos before making a decision on whether Aptos is a good investment.
What is Aptos
Aptos is a Layer 1 blockchain that uses the Move programming language. Users can expect increased scalability, reliability, security, and usability from the cryptocurrency. The Aptos team is led by the original group of engineers, researchers, and designers from the Diem project, which includes former Meta developers Mo Shaikh (CEO) and Avery Ching (CTO). Read more about Aptos here.
Controversies
1. Transaction Per Seconds
The new blockchain supports parallel execution. This was intended to enable the scalability of up to 160,000 transactions per second (tps). However, this was not the case pointed out by a pseudonymous analyst going by the name of Paradigm Engineer #420.
At the debut, the tps was only a little over four transactions per second. Furthermore, the majority of activity on the network consisted of validators chatting, setting block checkpoints, and adding information to the blockchain rather than actual transactions. Another complaint was that developers were unable to use the blockchain properly due to the lack of rpcs and the difficulty in connecting to validators.
The Aptos team addressed the transaction per second (TPS) issues by providing an explanation about the network's current state on Discord. The developers claimed that the four transactions per second do not reflect Aptos's maximum tps, as the mainnet will have minimal network load until user activity on the network grows.
2. Tokenomic Transparency
The world's two most prominent cryptocurrency exchanges, FTX and Binance, and other Aptos backers launched the APT token on 19 October 2022. Tokenomics, which was not made public until nearing the listing period, drew harsh criticism in the lead-up. The listing of APT on well-known cryptocurrency exchanges like FTX and Binance without any tokenomics transparency has drawn criticism.
A blog article addressed this concern, but there are still unanswered questions regarding how APT will be distributed and released in the future. Here's another tweet from another Twitter user that claimed that he worked on Aptos staking.
All of these problems were made worse by rumors that the system's Discord had been muted, which Shaikh claimed was a precaution against scams.
Is Aptos a Good Investment? (Conclusion)
It's uncertain whether the market requires yet another quicker blockchain. For starters, systems like Kadena can process more than 450k transactions per second (tps), but it has had a hard time taking off. A business like Visa, in comparison, can function well with less than 5,000 tps. It is, therefore, uncertain whether and why developers will switch to this new chain.
We advise you to conduct your own research if you are thinking about investing in Aptos. Before making any investment decisions, always consider the most recent market trends, news, technical and fundamental analysis, and professional opinion.
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Reposted from our blog here.
