In blockchains, reliability and accessibility are key factors to increased web3 adoption, including overcoming certain bottlenecks that exist in the pre-existing implementations of layer-1 protocols before next. In distributed systems such as blockchain, the process of carrying out a transaction is quite different from modifying the ledger's state and recording the outcomes.
The design of Aptos is structured in a modular way, which enables quick development and facilitates faster release cycles. Unlike monolithic architectures that require extensive time for editing, auditing, and testing, this modular approach allows changes to be focused on specific modules. As a result, it offers a systematic way to expand validators beyond just one machine by granting them access to more computational power, network capabilities, and storage options.
Aptos is a Layer 1 Proof-of-Stake blockchain. It uses the Move, a programming language born out of Meta’s Diem and Novi projects. Move is designed for safety and reliability, harnessing the power of Rust, a low-level programming language.
Aptos’ technological stack features many novel models, including the AptosBFTv4 consensus mechanism, the Quorum Store mempool protocol, the Block-STM parallel execution engine, and Move on Aptos.
Beyond the programming language, transaction flow on Aptos is resolutely different than most competing networks. Every step of the transaction process, from broadcasting transactions, ordering block metadata, and consolidating storage functions concurrently in a modular fashion.
AptosBFT is originally named DiemBFT, a consensus algorithm developed by Diem’s core blockchain developers—many of whom now contribute to Aptos as developers on the Aptos Labs team. AptosBFT implements increased throughput and lower latency compared to the existing PBFT through a round-by-round consensus and linking blocks together.
AptosBFT v4 features increased transaction processing speed through linear communication and chaining, enhancing synchronization speed among validators via a 'Pacemaker' and 'Timeout' mechanism.
The Aptos Labs team also introduced Quorum store, an implementation of Narwhal. Quorum improves consensus throughput by removing the data dissemination from network consensus. Before the introduction of Quorum store, transaction processing usually includes two major phases- Mempool and Consensus Phase.
An intermediate phase was added between the mempool and consensus phase called the Quorum phase. The Mempool is responsible for holding the set of potential user transactions. Quorum Store pulls batches of these transactions from the Mempool, broadcasts them, and forms proofs of their availability. Consensus then orders these proofs from the Quorum Store. With the ordered proofs, Execution uses Quorum Store to map them back to the corresponding transaction batches and executes those transactions on batches. Thus, it efficiently solves the problem of transaction redundancy.
DPoS - Delegated staking serves as an expansion of the staking protocol. It involves a delegation pool that acts as an intermediary between the stake owner and the validator. This pool can gather stakes from delegators and include them in the native stake pool linked to the validator on their behalf. By enabling various entities to come together to meet the necessary criteria for a validator to join the validator set, this system facilitates multiple stake pools. Despite delegators having the option to contribute to an inactive pool, rewards will only be earned once it becomes active.
The protocol sets the minimum to stake as 11APT with the option to unstake at any time, but funds are not available until the next validator unlock date. Delegators are paid 8% of the service fees.
Move - Aptos blockchain seamlessly incorporates and internally utilizes the Move programming language for rapid and reliable transaction processing. The Move Prover, a formal validator for smart contracts written in the Move language, offers security against common errors with smart contracts. This focus on security gives builders and developers the necessary tools to defend projects against attack vectors like double-spending.
Parallel Execution - Aptos takes a unique approach to transaction processing in contrast to other parallel execution in blockchains like Solana and Sui. Aptos handles transaction processing in parallel without the need for an upfront declaration of user-known dependencies. In comparison with other parallel execution engines, the Aptos engine facilitates more intricate transactions, thereby reducing costs and latency for end users utilizing the network.
Transaction Flow - Aptos achieves the maximization of throughput and a reduction in complexity in transaction processing by dividing the processing into three stages. Pipelining, batching, and parallel execution. These stages are independent and can be parallelized, enabling the blockchain to introduce novel modes of validator-client interaction. In addition, this approach enhances development timelines as each phase is treated as a separate entity instead of an interconnected whole structure. When transactions are processed, each validator organizes transactions into batches. Subsequently, these batches are merged into blocks through a consensus mechanism.
Tokenomics - The native token of the Aptos ecosystem (APT token) serves multiple purposes:
As at October 2022, the total token supply of APT is 1 billion tokens. The current circulating supply is 130,000,000. Here’s how the token was distributed:
The Aptos ecosystem is growing thanks to continued efforts to improve UX through safety and performance.
Decentralized Finance (DeFi): Several DeFi projects are building DEX Aggregator, DeFi HyperApp, Liquidity engine, and perpetual DEX on Aptos.
Improved User Experience (UX): Platforms are building tools and products to simplify the process of building scalable applications on Aptos.
On-chain Gaming: Platforms are using Aptos SDK to build multi-platform applications by bringing decentralization to Unity developers.
Aptos is also facilitating interoperability by launching bridges like Wormhole on Aptos that allow native Ethereum and Solana users to move into the Aptos ecosystem.
Technical Improvements - Contributors to the Aptos protocol are committed to making the network more scalable, performant, and robust. The team at Aptos Labs developed a solution for deep testing called Previewnet that replicates what Aptos mainnet will look like in the coming months.
The team also unlocked a new record of >30k TPS (Transaction per seconds) in the Previewnet. Aptos is striving to expand scalability even more, aiming for >100k TPS as their next goal on the path to surpassing 1 million TPS. This bold target is in line with Aptos' goal of building a platform that can cater to billions of users, paving the way for widespread adoption of Web3 technologies.
Ecosystem Partnerships: Aptos boasts collaborations with industry leaders like Google Cloud, Microsoft, and MoonPay, indicating its potential for future growth and adoption.
Website: https://aptoslabs.com/
Developer Documentation: https://aptos.dev/
Twitter: https://twitter.com/Aptos
Telegram: https://github.com/aptos-labs
Github: https://github.com/aptos-labs
Discord: https://discord.gg/aptosnetwork
About Chorus One
Chorus One is one of the biggest institutional staking providers globally, operating infrastructure for 50+ Proof-of-Stake networks, including Ethereum, Cosmos, Solana, Avalanche, and Near, amongst others. Since 2018, we have been at the forefront of the PoS industry and now offer easy enterprise-grade staking solutions, industry-leading research, and also invest in some of the most cutting-edge protocols through Chorus Ventures. We are a team of over 50 passionate individuals spread throughout the globe who believe in the transformative power of blockchain technology.
Before getting started with this edition of the Restaking Synopsis, we’d like to take a moment to highlight our uniqueAVS Selection Framework, that we announced on Thursday, May 9th!
TL;DR:
Since EigenLayer launched, operators have been busy onboarding every AVS out there. But there’s only 1 problem with that - this may not be a wise long-term approach.
We've detailed why in an article (linked below), and to summarize, here's what sets our approach apart:
🛑 No "Onboard All" Promise: We prioritize AVSs with breakout potential, filtering out those with complexity and risk.
✅ Rigorous Criteria: Our selection filters are based on strict engineering, security, and economic factors.
🎖Quality Over Quantity: Only AVSs that meet our criteria will be onboarded.
This reflects our customer-first principle and long-term vision for the EigenLayer ecosystem.
Feel free to check out the full article for more details on our AVS Selection Framework, why we're taking this unique approach, and why this approach is an important consideration for EigenLayer users.
Read the entire article here: https://chorus.one/articles/the-chorus-one-approach-to-avs-selection
🌟BONUS: Here's a meme-thread explanation of our AVS Selection: https://x.com/ChorusOne/status/1788928433461903496
OPUS Pool enables you to seamlessly stake ETH, restake a variety of LST’s and delegate your restaked assets to Chorus One on a single platform.
✅ Stake, Restake, and Delegate using just a few, simple clicks
✅ Completely permissionless
✅ Easily view/download your entire historical staking rewards report
✅ View and track your restaked asssets
✅ All on a single platform
Visit OPUS Pool: https://opus.chorus.one/pool/stake/
Your guide to OPUS Pool: https://chorus.one/articles/your-guide-to-opus-pool-stake-mint-oseth-and-restake-with-eigenlayer
As of May 10, you can claim your EIGEN, restake it (if you haven’t already) and choose to delegate to an EigenLayer Operator for future rewards!
The steps?
1. Claim EIGEN here: http://claims.eigenfoundation.org
2. Restake it (if you haven’t already): http://app.eigenlayer.xyz/restake/EIGEN
3. Delegate your restaked assets to Chorus One: https://app.eigenlayer.xyz/operator/0xf80b7ba7e778abf08a63426886ca40189c7ef48a
Note: You can currently only restake and delegate your EIGEN via the EigenLayer dashboard.
If you’re interested in learning more about staking/restaking with Chorus One, simply reach out to us at staking@chorus.one and we’ll be happy to get back to you!
Additionally, if you’d like us to share further resources on any topic, please let us know!
Thanks for reading and see you next time!
About Chorus One
Chorus One is one of the biggest institutional staking providers globally, operating infrastructure for 50+ Proof-of-Stake networks, including Ethereum, Cosmos, Solana, Avalanche, and Near, amongst others. Since 2018, we have been at the forefront of the PoS industry and now offer easy enterprise-grade staking solutions, industry-leading research, and also invest in some of the most cutting-edge protocols through Chorus Ventures. We are a team of over 50 passionate individuals spread throughout the globe who believe in the transformative power of blockchain technology.
Our EigenLayer strategy is to onboard all the AVSs that have chances of being break-out winners, while filtering out the long tail of AVSs that introduce complexity and risk. With this combination, we aim to deliver the best risk-adjusted reward APY to users delegating their restaked assets to by Chorus One. The first section covers our thesis, the second our onboarding policy and the third our track record.
The EigenLayer ecosystem will have hundreds of AVSs and be the leading mechanism for Ethereum to scale and service billions of users.
We expect individual AVSs to follow a power law distribution in competency and success, similar to the patterns observed elsewhere in crypto. For Cosmos, an application-specific ecosystem similar to EigenLayer, this data-set shows 6 chains have over $1 billion circulating market cap, 16 are between $100 million and $1 billion, and 42 are under $100 million. Most Cosmos chains never achieve significant success, with market caps exceeding $100 million. The median chain barely gains traction and struggles for attention and impact. In the broader crypto market, there are ~14,000 tokens (from CoinGecko). The median token is illiquid. All the realized alpha in crypto lies in the outliers - the top 500 chains with market caps above $90 million and sufficient liquidity. AVSs will be similar - all the returns will exist in the top 20% of AVSs.
Not only are successful AVSs the exception, but there is major alpha in early participation in promising projects with no defined market value. Most AVS projects will spend significant time in a pre-launch phase where the mainnet service does not exist. Testnets are rolled out while the developers build functionality and product features. During this phase, there is no clarity on the economics of reward delivery of the AVS. There is also no market cap, token supply, or token price information to rely on. There are likely also caps on the number of operators that can be enrolled by the project developers for testing. Because of the lack of information and transparency in the market, the overall ecosystem of Node Operators (NO’s) and restakers cannot perfectly judge the project. Hence, outsized yields, can be produced. The EIGEN token delivers the best example of such an opportunity - it delivered returns to early restakers in the 30%-60% range, depending on when exactly the restakers participated and how trading markets stabilize.
It is possible (and a mistake) to onboard the entire long-tail of AVSs. Such an approach will radically boost infrastructure complexity and risk. Complexity and risk lead to the need to charge high commissions, thus reducing the risk-adjusted APY for restakers. Eventually, it accentuates slashing risk. Technical due diligence, that tests for originality and legitimacy of software work, as well as application of software development best practices has always been and continues to be the best method for filtering out the long tail, and narrowing focus on the break-out winners.
We will apply our infrastructure effort in a subset of chains that pass our strict filtering criteria. When multiple AVSs pass our filtering criteria concurrently, our internal prioritization will look at the positive signals from the projects.
Our filtering criteria focuses on evaluating the software engineering of projects. Our method for evaluation consists of 3 parts:
Our filtering criteria focuses not on the easily molded exteriors of the project - the website, the podcasts or the marketing - but rather on the hard to change signal-rich factors that usually accompany a winning project in crypto.
When multiple AVSs cross our filter and require prioritization, we will prioritize them depending on the following signals:
We’ve applied a similar framework for our onboardings across Cosmos and in our venture investments. Chorus One is the most successful validator venture investor counting early participation in Solana, Lido, Celestia, Dymension, Saga, Wormhole, GogoPool, Neutron and Osmosis. In addition, we have infrastructure certifications highlighting the care with which we operate the networks.
Cosmos is the best example of an alternative application specific eco-system similar to EigenLayer. Our selection process, applied over 6 years has consistently picked all the top 20 chains, except two. On Cosmos, we have the best track record on participating with the governance processes of application specific chains.
Our early experience in EigenLayer, which includes research on network wide risk and slashing cascades, reinforces our belief in our onboarding process. We’ve encountered AVSs with plagiarized code, closed source code, and AVSs with key management systems that would expose our entire EigenLayer setup (operator key) to attack. These experiences have made it impossible for us to follow an “onboard all AVSs” path.
As a restaker with Chorus One, you derive the following benefits with our approach:
We will never be the operator with the most number of AVSs onboarded. And that works because it is far more critical to be early supporters of the break-out successes. Here’s to finding the gems early!
Seamlessly restake with Chorus One using OPUS Pool: https://opus.chorus.one/pool/stake/
Here's a step-by-step guide to using OPUS Pool: https://chorus.one/articles/your-guide-to-opus-pool-stake-mint-oseth-and-restake-with-eigenlayer
About Chorus One
Chorus One is one of the biggest institutional staking providers globally, operating infrastructure for 50+ Proof-of-Stake networks, including Ethereum, Cosmos, Solana, Avalanche, and Near, amongst others. Since 2018, we have been at the forefront of the PoS industry and now offer easy enterprise-grade staking solutions, industry-leading research, and also invest in some of the most cutting-edge protocols through Chorus Ventures. We are a team of over 50 passionate individuals spread throughout the globe who believe in the transformative power of blockchain technology.
Bitcoin's Layer 1, revered for its unparalleled security and decentralization, has faced scrutiny over its scalability, cost, and throughput limitations. These constraints catalyzed the emergence of alternative networks like Ethereum, designed with smart contracting capabilities at their core. However, the narrative is shifting. With the introduction of Layer 2 solutions that integrate DeFi functionalities to Bitcoin, it’s poised to expand its utility far beyond a store of value.
In this article, we delve into the intricacies of Bitcoin Layers, and explore some of the projects in the space we’re most excited about.
As a team that is continually researching new technologies and exploring promising narratives, we’re thrilled to expand our expertise in the Bitcoin economy and collaborate with key players building in this ecosystem.
Before delving into the nuances of Bitcoin Layer 2 solutions, let's take a step back and understand the core concept of Layer 2s. A Layer 2 is built on top of the base chain (Layer 1) to improve scalability and transaction throughput.
Bitcoin and Ethereum are Layer 1 protocols, serving as the settlement layer for all transactions on their respective networks. Layer 2 solutions offer a way to increase transaction speeds and scale the network while benefiting from the security of the main chain.
While numerous Layer 2 solutions, such as rollups, side chains, and channels, are already building on Ethereum, and Bitcoin Layer 2s have been in development for some time, several projects are now closer to launching and expanding Bitcoin's utility. However, scaling Bitcoin presents unique intricacies that need to be addressed.
The most crucial requirement for a Bitcoin Layer 2 solution lies in deriving its security from Bitcoin's own security model, a task that proves challenging in practice. To effectively secure a Layer 2, Bitcoin must possess the computational capability to validate the behavior of the Layer 2. However, Bitcoin's current computational capacity falls short compared to Ethereum's Layer 2 solutions.
For instance, Ethereum rollups derive their security from the Layer 1 by either verifying a zero-knowledge proof (zk-rollup) or confirming a fraud proof (optimistic rollup). Nevertheless, there are ongoing proposals aimed at enhancing Bitcoin's functionality to enable the base layer to validate zk-Proofs submitted by rollups. Additionally, initiatives like BitVM strive to implement fraud proofs without necessitating alterations to the base layer.
While solutions are emerging to address this challenge, they bring their own set of architectural choices and leverage novel technologies to find viable solutions. As the development of Bitcoin Layer 2s progresses, the ecosystem will need to carefully evaluate the trade-offs and implications of each approach.
Bitcoin's Layer 2 solutions face unique challenges in trying to improve upon the base layer. These challenges revolve around three main goals: handling more transactions, maintaining robust security, and ensuring that the system remains decentralized. Here's a simpler look at each goal:
By focusing on these three areas, Bitcoin's Layer 2 aims to enhance the base layer's capabilities while adhering to the principles of scalability, security, and decentralization. This approach ensures that the network can grow and adapt to new demands without compromising on its core values.
In this section, we explore a few Bitcoin L2s that we’re excited about, and provide a quick overview of the project.
Overview: Stacks brings smart contracts and decentralized apps to Bitcoin using a unique Proof-of-Transfer (PoX) mechanism. Key Features:
Overview: Designed for fast and cost-effective micropayments on Bitcoin.
Key Features:
Overview: Introduces Ethereum-compatible smart contracts to Bitcoin.
Key Features:
Overview: Builds on BTC to EVM bridging technologies, offering a novel dual-token staking model via $HODL.
Key Features:
Overview: The first implementation using BitVM, focusing on scalable and efficient transaction processing.
Key Features:
Overview: Merges Proof-of-Stake with Bitcoin’s robustness, focusing on cross-chain functionalities to offer Bitcoin restaking.
Key Features:
Overview: Offers private and scalable off-chain Bitcoin payments.
Key Features:
Overview: Implements a zk-rollup model to improve transaction efficiency and security on Bitcoin.
Key Features:
Overview: An Ethereum-based Proof-of-Stake Layer 2 that uses Bitcoin as its core asset for staking and governance.
Key Features:
Overview: A zk-rollup solution that stores proofs and transaction data directly on Bitcoin's blockchain.
Key Features:
Overview: BOB is an Ethereum-based Layer 2 solution designed to integrate closely with Bitcoin, maintaining alignment with Bitcoin's principles.
Key Features:
Overview: Twilight offers a platform for deploying privacy-focused decentralized exchanges and other applications, using advanced cryptographic methods to ensure security and privacy.
Key Features:
…and more! Stay tuned for Part 2, where we'll delve into even more exciting projects emerging within the ecosystem.
As a forward-thinking infrastructure provider, Chorus One is thrilled about the immense potential of integrating DeFi functionalities into Bitcoin and witnessing its evolution beyond being a store of value. Engaging in in-depth research into promising new technologies and projects, we're excited to explore a new landscape beyond Proof of Stake-based networks.
We're actively collaborating with L2s to delve deeper into the ecosystem. If you're interested in learning more or getting involved with some of the projects we're working with, please reach out to us at staking@chorus.one. We'd be delighted to connect with you.
Chorus One is one of the biggest institutional staking providers globally, operating infrastructure for 50+ Proof-of-Stake networks, including Ethereum, Cosmos, Solana, Avalanche, and Near, amongst others. Since 2018, we have been at the forefront of the PoS industry and now offer easy enterprise-grade staking solutions, industry-leading research, and also invest in some of the most cutting-edge protocols through Chorus Ventures. We are a team of over 50 passionate individuals spread throughout the globe who believe in the transformative power of blockchain technology.
