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What is Internet Computer (ICP)?
Internet Computer basic info
About Internet Computer
The Internet Computer (ICP) is the first world computer blockchain that represents a new paradigm in computing by introducing a decentralized network that runs at web speed with unlimited capacity. It's designed to host everything from smart contracts to data and content directly on the internet, eliminating the need for traditional servers and cloud services.
Created by the DFINITY Foundation in 2021, the Internet Computer aims to democratize the internet, allowing developers to create websites, enterprise IT systems, DeFi applications, and more, all in a decentralized environment.
In 2021, the DFINITY Foundation announced a fund of CHF 200 million, or around US$223 million, to support development on the Internet Computer. By providing financial backing, they aim to enable developers and entrepreneurs to create new technologies and applications that can leverage the decentralized infrastructure.
Resources
Whitepaper: https://internetcomputer.org/whitepaper.pdf
Official website: https://internetcomputer.org/
How does Internet Computer work?
The key technology that will enable the network to run millions of nodes and thousands of subnets at once, and thereby creating a powerful decentralized web is Chain Key Cryptography. The Internet Computer, unlike most other blockchains, has only one public key. The single public key enables any device, no matter how powerful, to verify the authenticity of transactions and assets in the network without requiring a lot of data and computing power.
Furthermore, canisters (codes and states deployed to the Internet Computer) can be run across a number of nodes at the same time, eliminating the single point of failure while allowing the process to be faster and the result more correct. All nodes that process a canister are required to sign one shared secret key to mark the result, and their signatures can only be verified using the public key.
The unique infrastructure of Internet Computer enables the network to operate and upgrade seamlessly and easily. Replacing faulty nodes without halting the whole network or part of the network, and reviving a subnet when too many nodes within it crash are also possible for Internet Computer.
What is the ICP Token?
ICP, the native and utility token of the Internet Computer, plays an important role in network governance and is used to facilitate various activities within the ecosystem:
- Participating in Governance: Token holders can lock their ICP to create neurons, allowing them to participate in the network's decentralized governance through voting, thereby influencing the network's direction.
- Facilitating Operations: The ICP token is also used to pay for computation cycles on the network, facilitating smart contracts and other decentralized applications.
- Economic Incentives: Nodes in the network are rewarded with ICP tokens for providing computing capacity, creating an incentivized system that encourages participation and ensures network integrity.
DFINITY, the team behind Internet Computer, holds a large percentage of ICP tokens, which is 22.2%. This leaves only 77.8% to the community. Though the goal of Internet Computer is to decentralize the world at large, their token distribution shows a disproportionate amount of control that the team has over the network.
Conclusion
The Internet Computer presents a revolutionary approach to decentralized computing, offering an open and public computing resource. Its architecture ensures scalability and efficiency, and the ICP token is integral to its operation and governance. Together, these elements form a powerful platform with the potential to reshape the internet landscape, fostering innovation and inclusivity.
It's important to note that like any other cryptocurrencies, the Internet Computer carries its own risks and it's always wise to do your own research and exercise caution while investing.
ICP supply and tokenomics
Uniqueness
The Internet Computer blockchain incorporates a radical rethink of blockchain design, powered by innovations in cryptography. It provides the first “World Computer” blockchain that can be used to build almost any online system or service, including demanding web social media, without need for traditional IT such as cloud computing services. As such it can enable full end-to-end decentralization.
Token utility
The IC makes use of a utility token called ICP. This token is used for the following functions:
- Staking in the NNS: ICP tokens may be staked in the NNS to acquire voting rights so as to participate in the DAO that controls the IC network. Users that have ICP tokens staked in the NNS and who participate in the NNS governance also receive newly minted ICP tokens as a voting reward. The amount of the award is determined by policies established and enforced by the NNS.
- Conversion to Cycles: ICP is used to pay for the usage of the IC. More specifically, ICP tokens can be converted to cycles (i.e., burned), and these cycles are used to pay for creating canisters and for the resources that canisters use (storage, CPU, and bandwidth). The rate at which ICP is converted to cycles is determined by the NNS.
- Payment to Node Providers: ICP tokens are used to pay the node providers—these are the entities that own and operate the computing nodes that host the replicas that make up the IC. At regular intervals (currently monthly), the NNS decides on the number of newly minted tokens that each node provider should receive, and sends the tokens to the node provider’s account. Payment of tokens is conditioned on providing reliable service to the IC, according to specific policies established and enforced by the NNS.
Links
What is the development prospect and future value of ICP?
The market value of ICP currently stands at --, and its market ranking is #999999. The value of ICP is not widely recognized by the market. When the bull market comes, the market value of ICP may have great growth potential.
As a new type of currency with innovative technology and unique use cases, ICP has broad market potential and significant room for development. The distinctiveness and appeal of ICP may attract the interest of specific groups, thereby driving up its market value.