What is Internet Computer (ICP)

The Internet Computer (ICP) is a blockchain-based worldwide computer designed to transform the Internet. The project brings blockchain technology to the everyday functions for which we use the Internet, and is described in the white paper as:

“A radical new design of blockchain that unleashes the full potential of smart contracts, overcoming the limitations of smart contracts on traditional blockchains with respect to speed, storage costs, and computational capacity.”

More about Internet Computer

The Internet Computer decentralized public network with smart contract support is designed to deploy decentralized applications (DApps) with fast transactions and high security.

It was founded and launched by DFINITY, a non-profit research organization based in Switzerland, and is the world’s first blockchain with unlimited data transfer rates. Note that the project’s Whitepaper is scheduled 20 years in advance. That does not happen very often.

The network provides a revolutionary new way to create tokenized Internet services, decentralized financial systems (DeFi), and traditional corporate systems, websites, and social networks in Web 3.0 format.

The native token of the project is ICP. The total volume is fixed, but the number of coins in circulation gradually increases as they are unlocked and distributed. This aspect may have an impact on the price of cryptocurrency in the near future.

The Internet Computer-based DApps offer a more secure and reliable alternative to traditional IT infrastructure. The platform has its own programming language for creating DApps, Motoko.

As the crypto market evolves, the Internet Computer is emerging as a promising alternative to the Bitcoin network due to its high transaction speeds and ability to host dApps. However, caution and thorough research should be exercised before making investment decisions, as cryptocurrency prices are volatile and unpredictable.

Internet Computer’s History

The project was founded in October 2016 by Dominic Williams, a crypto theorist, entrepreneur, prominent member of the early Bitcoin and Ethereum tech communities, and founder and CEO of the MMO game Fight My Monster. Williamson also founded several startups before taking on DFINITY.

Within two years, he raised $121 million from prominent cryptocurrency investment firms including Polychain Capital, Andreessen Horowitz (a16z), Aspect Ventures, Electric Capital, Scalar Capital, and Multicoin Capital. With his name and capital backing DFINITY, Williams and his team had enough resources to launch the project.

On May 10, 2021, the developers of DFINITY launched the alpha mainnet of Internet Computer, and early participants, venture capitalists, and participating users of the ICP token airdrop were able to freely trade coins on the open market.

At the same time, the Internet Computer source code was made publicly available, allowing thousands of developers to build new networks based on it.

What makes the Internet Computer unique

The Internet Computer is positioned as the third iteration of the blockchain. For example, the first is bitcoin, which has been called digital gold, and the second is Ethereum, which gave rise to DeFi and smart contract technology.

The scientific breakthrough that underpins the Internet Computer network and allows it to operate at web speed is the technology of Chain Key Cryptography. It enables update calls when interacting with DApps to take 1-2 seconds and queries to take milliseconds.

It is one of the fundamental components of the Internet Computer, allowing the blockchain to have a single public key. This is a huge advantage over traditional blockchains, as only on the Internet Computer is a single identity for the entire Internet possible.

Due to its unique technical characteristics, the Internet Computer can host and serve web applications on the blockchain, eliminating the need for a centralized web infrastructure.

Another distinguishing feature is the unlimited scalability.

Interesting fact! According to the project itself, the cost of data storage in Internet Computer smart contracts is $5 per GB per year, while in Solana this figure is equal to $110 000, and on Ethereum exceeds $70 million.

Internet Computer’s core components and innovations

The project’s architecture includes a fault-tolerant cryptographic Internet Computer Protocol (ICP) hosted on a geographically distributed network of nodes that ensures that smart contracts running on the blockchain are not halted or tampered with.

The blockchain uses a four-layer Proof of Stake (PoS) consensus mechanism that provides full decentralization, scalability, and protection against Sybil or hijacking attacks (“51% attack”).

The Network Nervous System (NNS)

NNS is a decentralized autonomous organization (DAO) that manages the Internet Computer. It is responsible for upgrading the network, managing ICP supply, and rewarding participants. The NNS also allows users to make and vote on proposals, shaping the future of the network.

Motoko programming language

Motoko is a new programming language designed specifically for the Internet Computer. It allows developers to create and deploy applications on the network. It is a statically typed language with a strong emphasis on security and developer productivity.

Canisters: Scalable smart contract architecture

Canisters are the building blocks of the Internet Computer. They are self-contained, scalable units of computation that can contain data, code, and state. Canisters are designed to run in parallel, allowing the Internet Computer to achieve unprecedented levels of scalability and performance.

Because of the unique architecture of subnets interconnected using Chain Key Cryptography, canisters (i.e., smart contracts) running on one subnet can invoke canisters hosted on other Internet Computer subnets.

Internet Computer’s Ecosystem

After the alpha mainnet launch, the Internet Computer ecosystem is already comparable to many leading Layer 1 (L1) blockchains in terms of the number of ecosystem projects. There are many projects in all categories, let’s take a look at the most popular ones.

Plug Wallet is a browser extension designed specifically for the Internet Computer ecosystem, providing convenient access and management of ICP tokens.

Distrikt is a fully decentralized community-owned professional network, similar to LinkedIn, with over 75 000 users. Unlike professional Web 2.0 networks, user data is not shared with third parties, and platform users can vote on upgrades and proposals.

DSCVR is a fully decentralized Web 3.0 version of Reddit where the users are owners. It has over 50 000 users.

OpenChat enables decentralized real-time messaging. 50 000 users use their single internet key to communicate freely on the blockchain.

ICPSwap is a decentralized exchange (DEX) that enables token exchange using a high-speed, scalable, and low-cost blockchain infrastructure. The project positions itself as a pioneer in the Internet Computer’s DeFi ecosystem.

Funded is a Web 3.0 crowdfunding platform that allows users to participate in fundraising for various causes using ICP, BTC, and ETH coins.

Dmail is a Web 3.0 formatted alternative to traditional email that provides web hosting and encrypted messaging. Users own their Dmail addresses as non-fungible tokens (NFTs). The platform includes a built-in trading platform.

InfinitySwap is a platform backed by Polychain Capital and 9YardsCapital funds to create, host, and exchange tokens.

Entrepot is the leading marketplace for NFTs in the Internet Computer ecosystem. Charges a 1% fee, collection creators can set royalties of up to 10%. It is a non-custodial platform, users retain full control over their assets.

Internet Computer’s developer community

Internet Computer aims to bridge the gap between decentralized and traditional web technologies by integrating with Web 2.0 services, fostering the growth of the developer community. Integration makes it easier for developers to transition from existing centralized systems to decentralized systems, creating a more secure and efficient digital landscape.

The developer community plays an important role in the success of the Internet Computer. With the release of the Motoko source code and programming language, developers began building a variety of applications on the platform. Enthusiasm and community support are key enablers of the Internet Computer’s adoption and innovation.

It is important to remember that investment decisions should not be based solely on the current or potential performance of a project. Factors such as market sentiment, competition, and regulatory changes should be considered when evaluating the prospects for the Internet Computer’s investments.

ICP tokenomics

The ICP token fulfills three key roles in the network:

• Production of Cycles: Cycles provide computation in the role of fuel that is burned in use. Cycles are pegged to SDRs (Special Drawing Rights), a currency unit defined by the International Monetary Fund. 1 SDR denominated in ICP tokens can be converted into one trillion cycles to power computation.

• Facilitating network governance: Users can earn rewards by locking their ICP tokens to create so-called “neurons” and participating in network governance by voting on proposals. The period of locking coins in “neurons” can be up to 8 years.

• Rewarding participants: The network encourages users who play key roles (node operators, staking validators) in making the network function by issuing new ICP.

At the launch of the blockchain, the initial circulating supply amounted to 469 213 709 ICP, which were distributed as follows:

• Early investors: 9,5%
• Seed round investors: 24,72%
• Strategic partnerships: 10,79%
• Pre-sale: 4,96%
• Airdrop: 0,8%
• Initial community and developer grants: 0,48%
• Node operators: 0,22%
• Internet Computer Association: 4,26%
• Team members: 18%
• Advisors and other third-party token holders: 2,4%
• DFINITY Foundation: 23,86%.

At the time of writing, ICP ranks 20th in the overall cryptocurrency rankings with a capitalization of over $6,9 billion and is trading at $14,93, having added 25,2% over the week. Since the beginning of the year, it has gained 12,5%.

Where to buy and how to store ICP

The token is available on major exchanges such as Binance, Bybit, OKX, and Kraken. If you want to make a large investment in ICP or plan to hold the asset, a hardware crypto wallet is the best option.

If you plan to trade the token, hot wallets available as web extensions or apps will be the best option. You can choose a third-party wallet such as Bitget Wallet, or you can choose a Plug Wallet designed specifically for the Internet Computer ecosystem.

ICP investment risks

The average trading price of an asset can provide insight into the market sentiment and overall performance of the token. In addition, technical indicators such as the Relative Strength Index (RSI) and trading volume can help assess the dynamics of the ICP market.

Keep in mind that analysts’ predictions are not guarantees and should be used as a reference rather than a definitive guide.

Factors such as network proliferation and growth, technological advancements, and general trends in the crypto space can affect the ICP price prediction. For example, platform features such as Chain Key Cryptography and the ability to reward network members may drive growth and demand for ICP.

That said, investing in ICP also comes with risks. The crypto market is known for its volatility. Market fluctuations can lead to significant volatility in the average price level, making it difficult to accurately predict the future performance of the token.

As the Internet Computer project evolves and matures, it has the potential to revolutionize the way people create and interact with software. With its unique capabilities, scalability, and increased attention to security and privacy, the Internet Computer has the potential to become a critical part of the Internet infrastructure, empowering developers and users.

The future of the Internet Computer depends on its ability to gain popularity and establish itself as a reliable platform for creating and deploying DApps and smart contracts. As the platform attracts users, demand for ICP may increase, which will have a positive impact on its value. Meanwhile, competition from other platforms may affect the Internet Computer’s market share and ICP’s value.