Aptos Vs. Ethereum: Which is Superior?
Published May 11th, 2023
Ethereum is hailed as the second most popular cryptocurrency. Aptos, on the other hand, is a new competitor. Some call it the Solana Killer, while others say it’s an Ethereum Killer. As notorious as Aptos is, does it have the potential to overtake Ethereum?
There are vast differences between Aptos and Ethereum, and each of these differences gives them advantages and disadvantages over one another.
When it comes to technology Aptos is better than Ethereum. Aptos has cheaper transaction fees of $0.006 than Ethereum which costs $0.60. Ethereum is slow compared to Aptos, handling 50 TPS when Aptos can handle about 160k TPS. Aptos uses Move as its primary smart contract language, while Ethereum uses Solidity. Ethereum is more secure and decentralized than Aptos due to its longer online presence, demonstrated reliability since 2015, and having significantly more validators, with 500k+ compared to Aptos' 107. Ethereum has better tokenomics than Aptos. While Ethereum has a deflationary inflation rate of -2.26%, Aptos' circulating supply inflation is 41.53% (year 2023) , resulting from investor unlocking, Aptos Lab foundation unlocks, minting Aptos coins etc.
We will go into the differences between Aptos and Ethereum in this article from various perspectives.
Let's get right into it!
Ethereum is a decentralized blockchain platform that allows developers to build decentralized applications and execute smart contracts. Unlike traditional applications that run on centralized servers, Ethereum apps run on a global network of nodes that work together to maintain the system's integrity.
Since its launch in 2015, Ethereum has become a significant player in the cryptocurrency space. Its technology has enabled the creation of new use cases, such as decentralized finance (DeFi) applications and non-fungible tokens (NFTs). In 2021, Ethereum launched a significant upgrade, transitioning from a proof-of-work consensus mechanism to a proof-of-stake mechanism. This upgrade, known as Ethereum 2.0, improves the network's security and scalability while reducing energy consumption.
Aptos is a new blockchain platform that was launched in October 2022. It aims to address some of the scalability and energy consumption issues associated with other blockchain platforms.
One of the unique features of Aptos is its use of the Move programming language, which was developed by Facebook's Diem blockchain team. Move is designed to be a safe and secure language for writing smart contracts, with features such as automated resource management and a linear type of system. Additionally, Aptos has its own block-STM data structure, which is optimized for faster block propagation and storage efficiency.
Block-STM is a transaction execution engine for the Aptos blockchain platform that is optimized for faster block propagation and storage efficiency. It is designed to improve the overall performance and scalability of the blockchain, making it a more efficient and practical solution for a wide range of use cases.
Overall, Aptos aims to provide a more efficient and sustainable alternative to other blockchain platforms, making it well-suited for use cases such as decentralized finance (DeFi) and non-fungible tokens (NFTs).
While it is still relatively new and has yet to gain widespread adoption, its unique features and innovative approach make it an interesting platform to watch in the evolving landscape of blockchain technology.
Aptos and Ethereum are similar technologically since they are cryptocurrencies and have distributed decentralized ledgers, though they have vast differences. Aptos is a newer network, where Ethereum is older, which has better technology? We will see this in the table below.
|Aptos Vs. Ethereum, Technologically|
|Max TPS Throughput||160,000||40|
|Virtual Machine||Move Virtual Machine (MVM)||Ethereum Virtual Machine (EVM)|
|Main Smart Contract Language||Move||Solidity|
|Avg. basic Transaction Fee||0.000585 APT
|$0.6 to $5.00|
|Consensus Algorithm||Proof of Stake + BFTv4 + Bullshark||Proof of Stake|
|Features of its Main Smart Contract Language||
|Total Validators Online||107||561,655|
|Minimum Required to Run a Validator||1,000,000||32|
|Block Production Time||0.33 Seconds||12 Seconds|
|Transaction Confirmation Time||4 seconds||1 to 5 minutes|
|On-Chain Governance?||Yes||Yes, though not fully autonomous|
|Modular Blockchain Architecture?||Yes||Yes|
Let’s analyze the table above to see the differences between Aptos and Ethereum.
From the table above, we can see that Aptos has cheaper transaction fees than Ethereum at $0.006 vs $0.60. Ethereum is slow compared to Aptos, handling 50 TPS when Aptos can handle about 160k TPS.
Ethereum uses Solidity as the primary smart contract language compared to Aptos which uses Move, a new smart-contract programming language developed by the Diem developers at Facebook.
Ethereum is more secure and more decentralized than Aptos. This is because it has been flawlessly online since 2015. Aptos, on the other hand, hasn’t had much time to prove itself. Ethereum is many orders more decentralized than Aptos, having 500k Validators, while Aptos has about 107 validators (As of this article).
The confirmation times for transactions on Aptos are also many times faster than on Ethereum. It only takes 4 seconds on Aptos, versus 1 minute minimum on Ethereum.
Let’s Compare the Smart Contract Languages. Aptos’s MOVE Smart Contract Language features a Move Verifier, which makes sure that the Smart Contracts are written in a proof way. This ensures that they become more secure and more resilient to exploits.
Aptos and Ethereum have different main Smart contract Languages. Though they do support different languages, Solidity and Move are the primary ones. But how do they differ?
Ethereum’s’ Solidity language allows developers to separate their code into modules, though we can assume that Aptos has this feature similarly. On the other hand, Move requires that accounts have privileges when accessing modules.
It also integrates resources and events into accounts. One main difference is that Move allows for parallel execution while in Ethereum’s Solidity, each transaction is sequential, using nonces.
Ethereum and Aptos are also somewhat similar.
Ethereum and Aptos are both modular blockchains, meaning that different parts of the network are performed by different modules such as the execution module and consensus module.
Aptos and Ethereum are similar in that they are both Proof of Stake blockchains. Though Aptos’s consensus is somewhat different in that it utilizes the AptosBFTv4 algorithm too.
Decentralization is an important factor in cryptocurrency. If a government institution prevents people from using a blockchain, it’s pointless to use that cryptocurrency. The very purpose of cryptocurrencies is decentralization.
This begs the question, which is more decentralized, Aptos or Ethereum. Let’s take a look at this in this passage.
|Decentralization in Aptos Vs in Ethereum|
|Coins Required to Run a Validator||1,000,000||32|
|USD Worth Required to Run a Validator (As of May 2023)||$9,200,000||$60,800|
|Consensus Algorithm||Proof of Stake + AptosBFTv4||Proof of Stake|
Let’s analyze which chain is more decentralized, Aptos or Ethereum.
As we can see from the table above, Ethereum is substantially more decentralized than Aptos. There are orders of magnitude more validators on Ethereum than on Aptos.
Aptos is also more centralized than Ethereum since it is virtually impossible for the average person to run a validator on Aptos. Nearly 10 Million dollars of wealth is required to run a validator on Aptos.
In contrast to Aptos, the average person can run a validator on Ethereum.
In our article about Aptos, we review how most Aptos validators are controlled by Aptos Labs and by Aptos venture capitalists. Some of the Aptos validators are managed by 3rd party companies, but ultimately the assets are owned by venture investors or by the Aptos Foundation.
While 50% of coins are supposed to be for the community (according to the token distribution chart) , these are mostly in custody by the Aptos Foundation.
In the image below we can see this.
There is no point in having a sophisticated protocol such as Aptos if nobody is using it. Blockchain networks such Ethereum are like cities, the more people use it, the more infrastructure they have, the more valuable they become.
In this section we compare how much adoption each blockchain ecosystem is receiving. We compare metrics such as TVL and DApps deployed. This can give us a great idea of the amount of value that each has.
This can be especially useful because it allows us to see if Aptos or Ethereum are overvalued or undervalued relative to each other.
|Adoption in Aptos Vs in Ethereum|
|Total Value Locked (TVL)(As of May 2023)||53 Million USD||39 Billion USD|
|Total Accounts Created (As of May 2023)||3,694,080 Accounts||230.917 Million|
|Total DEXs Deployed(As of May 2023)||10+||100+|
|Total Wallets (As of May 2023)||About 6||More than 50|
|Total DApps(As of May 2023)||23||690+|
|Total Cross-Chain Bridges Integrated (As of May 2023)||About 4||30+|
|Total Current Active Developers||61||194|
|Current Marketcap(As of May 2023)||1.768 Billion USD||229.9 Billion USD|
|TVL to MC ratio (Higher is better)||0.0299||0.169|
Aptos has a decent number of developers for the current chain that it is. Compared to Ethereum, Aptos has a long way to go when it comes to adoption. It has started gaining traction on developers deploying Decentralized applications, though it still needs much more to be able to compete with Ethereum.
Most of the TVL is still in Ethereum. As we can see from the table above, Aptos does have cross-chain bridges so that people can bridge assets from other chains which is pretty good.
Ethereum has much more wallets than Aptos. While Ethereum has more robust and sophisticated wallets, Aptos has some medium to good wallets too.
All in all, We can see that Aptos has a long way to go when it comes to adoption. Aptos is also very overvalued when comparing the TVL to the current Marketcap ratio.
Tokenomics is important when it comes to cryptocurrencies such as Aptos and Ethereum. It is the economics of coins which influence scarcity, demand, supply influx and much more. In this passage we compare the tokenomics of Aptos vs the Tokenomics in Ethereum.
|Tokenomics in Aptos Vs. In Ethereum|
|New Minted coins Yearly||70,000,000 APT / year||687,000 Ethereum / year|
|Burning Mechanism?||All TX fees are Burnt||All TX fees are Burnt|
|Total Coins Burnt Yearly||Between 50 and 100||3,408,000|
|Circulating Supply Inflation( Year 2023-2024)||41.53%||-2.26%|
|Max Supply||1,033,051,043||120.3 Million ETH|
|Marketcap (As of May 2023)||1.768 Billion USD||229.9 Billion USD|
|% Circulating Supply of Total Supply||18.39%||100%|
|Token Use Cases||
|% Locked in Staking||83.3%||15%|
Aptos and Ethereum have similar tokenomic factors. Though there are some differences that benefit both of them. This gives them advantages and disadvantages. Let’s see what those advantages are.
Firstly, Aptos issues many more coins than Ethereum. As a matter of fact, assuming that Ethereum didn’t burn any it would mint 0.57% compared to Aptos’s 7%. Aptos has a high inflation rate. Ethereum is better than Aptos in this regard. Aptos hurts investors more since it has a larger inflation rate.
Aptos small transaction fees are both a good thing and a bad thing. It is good because the fees are insanely low. It is a bad thing because TX fees are burnt, and since they’re small, it doesn’t equate to any large number of Aptos burnt.
Compared to Aptos, Ethereum burns a lot more value. Ethereum burns so many tokens that the total supply is actually being reduced! This brings the inflation rate of Ethereum to -2.26%.
Aptos tokenomics are worse than Ethereum’s when we find out that the circulating supply inflation for Aptos is 41.53%. This means that the circulating supply increases by 41.53% from 2023 to 2024. This is a result of investor unlocking and Aptos Lab foundation unlocks and much more, as well as a result of minting Aptos coins.
This is a disadvantage that Aptos has compared to Ethereum because the influx of Aptos into the market suppresses the price. It may even cause the price to perform badly in the short term.
We can also see this in the % Circulating supply from total supply metric. Aptos supply is only at 18%, this will eventually get to 100% which is when all Aptos tokens are unlocked.
Both Aptos and Ethereum Coins are used for the same purposes. Similarly like in Ethereum, network users can Stake Aptos coins to earn a Monthly or yearly yield.
Both coins are also used to pay for transactions, or to run validators.
Ethereum and Aptos have very large differences and some general similarities.
For starters, Ethereum is very well trusted in the world. Aptos has yet to earn the trust of people simply because it hasn’t made a name for itself and because it hasn’t been around a whole long.
The real only advantage that Aptos has is its technology. However, for it to get traction as a network, it really needs to onboard people and promote more user growth. There are many networks which have better technologies than Ethereum but never get off the ground since they don’t have any user growth.
The only real two negative advantages that Ethereum has that Aptos doesn’t, are slow transaction speed and costly transaction Fees. Ethereum seems to shine in everything else, from decentralization, to total value locked, to applications deployed.
It is going to be difficult for Aptos to reach similar valuations as Ethereum, for two main reasons. These two reasons are that Aptos is not as decentralized as Ethereum. And secondly, Aptos needs to build immense amounts of trust, and support, while competing for these elements with Ethereum and many other networks.
Why is decentralization so critical? It is the main reason why cryptocurrencies such as BTC or Ethereum exist. When a cryptocurrency is decentralized to a certain far out point. Large players will start to trust it more. Institutions will use it more and more.
Such is the case with Bitcoin and Ethereum. They are slow, they are costly to use. But they have one thing in common. They dominate all other cryptocurrencies in the decentralization metric.
For Aptos to reach similar valuations as Ethereum, it truly needs to become decentralized.
To our second point, it will be difficult for Aptos to reach Ethereum levels because Ethereum has tons of human, technological, and monetary capital. One does not simply buy out developers. While Aptos does have about 62 core developers, it needs to attract more developers to create DApps and other innovative products on Aptos.
It will be difficult for Aptos to attract human capital in the quantities that Ethereum has. Ethereum has many developers, artists, many theorists and institution-based investors.
Monetary capital is also difficult to come by, and all networks are competing for it.
It is difficult to attract billions of dollars’ worth of value over. As we saw previously Ethereum has more than 30 Billion dollars’ worth of value locked.
Aptos simply doesn’t have the trust of large players for them to risk their capital into the network.
Like many other networks, the one advantage that Aptos has over Ethereum is the technological one. Aptos surely has supremely better technological advances.