What is The Internet Computer (ICP)?

What is The Internet Computer (ICP)?

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The Internet Computer is globally known as the first blockchain in the world that has an uncapped capacity that allows it to operate at web speed.

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Along with Bitcoin and Ethereum, it is the third significant blockchain breakthrough – a blockchain processor can scale smart contract computation and data, execute them at web speed, quickly process and saves data, and gives developers sophisticated software frameworks.

With the Internet Computer, the software is completely reimagined. This allows for tokenized internet services in addition to cross-industry interfaces, decentralized banking institutions, and even typical business systems and websites.

Component The Internet Computer (ICP)
Technologies The Internet computer incorporates Chain Key Technology, novel Consensus, Non-Interactive Distributed Key Generation, and more.
Market Capitalization $4.29 Billion
Open-Source Yes
Consensus Mechanism Queries and Calls
Smart Contracts Yes
Founders/Authors Dominic Williams
Launch Date 2016
Circulating Supply of Coins 190,679,334 ICP
Maximum Coin Supply There is no max supply
Mining-based Coin? No
Is The Internet Computer a Stablecoin? No
Does The Internet Computer have a burn rate? No
Does The Internet Computer have a Whitepaper? Yes, the white paper can be viewed here

 

Evolution and Development of The Internet Computer

The evolution and development of The Internet Computer are as follows:

  • It was founded in 2016 by Dominic Williams
  • ICP was distributed to 50,000 registered participants during an airdrop in May 2018
  • DFINITY announced that it raised $102 million from investors and venture capital firms in August 2018
  • DFINITY launched its alpha mainnet in December 2020
  • In May 2022, The Internet Computer launched into the public domain, and ICP tokens are listed on major exchanges.

For the first time, the Internet Computer can function at web speed, where queries are executed in milliseconds and updates are completed in 1-2 seconds.

Additionally, the Internet Computer will be able to process 2.5 blocks per second (bps) at Genesis, swiftly rising to an industry-leading bps of 10.3 blocks per second by the end of the year, making it the fastest computer in the world at that time.

What makes The Internet Computer unique?

Systems and services are today run on private infrastructure on the internet, which links everyone and everything. The Internet Computer aims to achieve the goal associated with revamping the internet to become decentralized and an overall global computing platform.

In this system, independent data centers from around the world collaborate to create a different protocol, as opposed to cloud computing, that currently powers most of the internet. The protocol will be installed on millions of computers throughout the world, according to the ICP.

Consensus, Non-Interactive Distributed Key Generation (NI-DKG), Network Nervous System (NNS), Internet Identity, and a slew of other sophisticated technologies are all part of the Chain Key Technology that powers the Internet Computer.

In Chain Key Technology, the nodes of the Internet Computer are orchestrated by a series of cryptographic protocols. The Internet Computer's ability to use a single public key is a major advance.

As a result, the Internet Computer's artifacts may be authenticated by any device, including smartwatches and mobile phones.

What are the main uses for The Internet Computer?

The ICP digital token serves several functions: it serves as a governance token, which allows holders to “lock” some of their ICP into the network (also known as staking) in exchange for a say in the continued development of the ICP protocol.

In addition, participants and active users can be rewarded for good behavior on the network, and ICP can also be used as a utility token to pay network transaction fees.

Users can easily start and run a business on the internet with DFINITY, which means that they would not have to rely on other third-party companies such as eBay or social media platforms such as Facebook.

Sharding is how it stores data on the blockchain at a low cost. To make it easier to build and maintain systems, DFINITY says that the Internet Computer will change how we think about what is called the “IT stack.”

What is the future potential for The Internet Computer?

By 2026, it is expected that the cloud computing market will be worth $1 trillion. Third-party teams interested in developing apps, tools, or protocols for the system will be supported by DFINITY, which has garnered $101 million in investment to date.

In May 2020, the DFINITY Foundation launched a $200 million fund to recruit developers to work on DFINITY's ambitious 20-year vision.

The Internet Computer is already home to several DApps. Both Enso and DSCVR, which is a decentralized variant of Reddit, have been created by the same team.

As stakeholders, developers and users will have a motivation to keep the system simple and cost-effective if they feel it is the right location to create.

Price analysis on The Internet Computer

The Internet Computer was initially launched in 2022, and its price analysis over the past year is indicated as follows:

 

  July August September October November
ICP Price High $50.08 $75.79 $85.19 $55.66 $56.85
ICP Price Low $28.01 $38.04 $40.38 $40.78 $39.25
Market Cap $7.5B $11.4B $13.3B $9.3B $9.98B

 

Price prediction on The Internet Computer

In 2022, the Internet Computer cost $48.17. The current price of The Internet Computer is $67.27, which is a 40% rise from the start of the year.

By the end of the year, the Internet Computer price forecast 2022 indicates that the ICP price could reach $79.00 — an increase of 64% over the current year.

According to the Internet Computer projection, the highest ICP price might be $310.12 in the next three years. 

Which wallets are the best option for storing The Internet Computer?

A digital wallet for the Internet Computer can be described as a piece of software that users can utilize to save the information essential to access their ICP cash.

This information includes a private key, which functions similarly to a passcode, and a wallet address, also known as a public key, which functions similarly to an account number.

The following crypto wallets are the best for ICP.

  1. Coinbase Wallet
  2. Stoic Wallet
  3. Plug Wallet
  4. dFinance
  5. NNS DApp

1. Coinbase Wallet: Coinbase is the most secure cryptocurrency wallet on the market. It provides a user-friendly interface for storing and accessing all crypto funds in one location.

Coinbase is available on both Android and iOS smartphones. Since 11th May 2022, Coinbase has supported The Internet Computer. On Coinbase, users can now purchase, sell, transmit, receive, convert, and store ICP.

2. Stoic Wallet: Toniq Labs created Stoic Wallet, which enables users to build a crypto wallet for ICP currencies while verifying them using a variety of techniques, one of which being Internet Identity.

Users may establish accounts, maintain a contact list, and do many functions using the wallet. Additionally, it enables people to engage via hardware wallets like Ledger or Trezor.

3. Plug Wallet: A wallet and authentication provider for the Internet Computer browser extension that allows users to use the same Principal ID to retrieve ICP, Cycles, and other assets, as well as log into IC apps using the same Principal ID.

4. dFinance: It is another ICP wallet that lets users generate and exchange their coins on the platform. It aspires to provide a decentralized financial solution for the DFINITY The Internet Computer cryptographic currency.

5. NNS DApp: The NNS front-end DApp makes it simple for users to maintain their ICP tokens, lock them in neurons, engage in governance, get rewards, and create cycles using their ICP tokens.

Where can you buy The Internet Computer?

The Internet Computer can be purchased from any of the following crypto exchange trading platforms:

  1. OKEx
  2. Binance
  3. Bybit
  4. KuCoin
  5. Huobi Global

1. OKEx: OKEx is headquartered in Malta, and it is a crypto exchange that has been in operation since 2014. OKEx is a global online cryptocurrency exchange powered by blockchain technology.

They use a web platform and a new app for mobile trading to make it easier for people to trade. Coins like Bitcoin and Ethereum can be traded on the OKEx crypto platform. Other coins like Litecoin and OKB also work.

 

PROS CONS
Offers one of the most advanced trading platforms Unregulated crypto exchange
Traders are given access to 24/7 dedicated customer service support MetaTrader is not supported
Traders are given a range of advanced trading tools United States clients are not accepted
Novice traders are given access to educational material There are limited tradable instrument

 

2. Binance: Binance has been around since 2017, and it is a globally recognized cryptocurrency exchange where users may trade currencies for free. The exchange supports approximately 150 cryptocurrencies. The trading platforms are available on PC, online, and mobile apps.

 

PROS CONS
Traders have access to more than 150 crypto coins that can be traded Unregulated
There are powerful trading platforms offered Telephonic support is not provided
Traders have the option to buy crypto coins using their credit card There is no daily market analysis provided
There is a comprehensive trading academy provided The platform does not accept clients from the US
Customer support is available 24/7 Only offers crypto trading, there is no stock trading or CFD trading
Binance is a large and trusted platform used by traders of all experience levels  

 

3. Bybit: Established in 2018, Bybit is a crypto exchange that is regulated by FINTRAC. Bybit is a rapidly expanding cryptocurrency exchange with over a million registered members.

Bybit offers a professional, simple, and creative trading platform across which digital assets such as Bitcoin, Ethereum, Tether, Ripple, and EOS can be exchanged.

 

PROS CONS
Offers a choice between web and mobile trading platforms There is a limited selection of tradable products offered
There is a wide range of trading and educational resources offered There is no telephonic support given
Traders have access to 24/7 customer support  

 

4. KuCoin: KuCoin was established in 2017 and is a cryptocurrency exchange trading platform based in Hong Kong. KuCoin is primarily an online cryptocurrency exchange that allows users to trade numerous cryptocurrencies like Bitcoin, Ethereum, Litecoin, Ripple, KuCoin (KCS), and more.

 

PROS CONS
Intuitive trading platforms offered US clients are not accepted
Several crypto coins can be traded Unregulated
There is 24/7 customer service offered  

 

5. Huobi Global: Huobi Global is a Singapore-based crypto exchange that is well-known for its margin trading and high daily trading volumes. Huobi Global offers its services to clients from more than 130 countries.

 

PROS CONS
Offers a choice between intuitive platforms Unregulated
There is a low minimum deposit requirement of $50 Only offers crypto trading, no forex trading, CFD trading, or stock trading
Offers 24/7 customer support No US clients
Offers a range of coins that can be traded  
There is a decent selection of educational material offered  
Globally recognised platform with a high trust score  

You can buy ICP safely from these cryptocurrency platforms.

What is The Internet Computer’s largest Competitor?

The largest competitor of The Internet Computer is Holochain.

Holochain seeks to challenge the current model. The Holochain is a public network and blockchain project that aims to establish a distributed internet with proprietary DApps, referred to as HApps, which are developed on the Holochain network.

Holochain employs distributed hash tables, unlike most contemporary networks' consensus algorithms. So there is no consensus algorithm. Thus, validating payments on this network requires very little energy.

The end-to-end method uses extremely little computing power and electricity. Holochain nodes can reportedly run on mobile devices. As the world moves towards a low-emissions future, Holochain may gain appeal.

Holochain is known for its distributed hash table validation. So Holochain has been dubbed an “agent-centric” network. Each agent (or node) holds a private fork on a distributed hash table. Einzelne nodes can only approve/confirm transactions Consensus is not necessary Holochain can thus execute transactions faster and cheaper than most other blockchains utilizing this method.

The initiative is still in its early stages of development. Therefore, considerable hurdles remain. Investors are thereby taking a risk with HOT, the Holochain network's native cryptocurrency. The mainnet is yet to be activated. After Beta is live, anybody may download the program and be a Holochain host, earning HoloFuel.

What is the Staking Process involved with The Internet Computer?

DFINITY employs a variant of the proof of stake techniques which are referred to as Threshold Relay. This is used to establish agreement, and it involves the nodes in DFINITY's version generating a random integer known as a “random beacon.”

This is used to choose the next set of nodes as well as to drive the platform's protocols. This method is known as the Threshold Relay Consensus model, and it is one of DFINITY's most important weapons.

What can The Internet Computer smart contracts do?

These are called canisters. In WebAssembly, a canister contains logic and memory elements. Canisters are used to construct DApps on the Internet Computer.

Using Canister smart contracts, consumers may connect with blockchain applications without holding tokens.

In time, it would allow for the hosting of any number of smart canister contracts (i.e., code & state). On-chain capacity is limitless. So you can build scalable DApps.

Canister smart contracts are impenetrable. Conceive a world where you do not need to worry about databases or caches – the Internet Computer takes these demands away.

Is The Internet Computer a Good Investment?

The Internet Computer could become a good investment.

Since The Internet Computer is still new, the protocol is untested. Some say there is a lot of special code involved. Critics claim the utilized blockchain is controlled, and the protocol's actual worth is unknown. The Internet Computer is still in its infancy, but the possibilities are endless.

What is the supply and distribution of The Internet Computer?

The circulating supply of The Internet Computer is 190,679,334 ICP, and there is no max supply. The distribution of ICP is as follows:

  • Early contributors: 9.50%
  • Seed donations: 24.72%
  • Strategic: 7.00%
  • Presale: 4.96%
  • Strategic partnerships: 3.79%
  • Community airdrop: 0.80%
  • Initial community and developer grants: 0.48%
  • Node operators: 0.22%
  • The Internet Computer Association: 4.26%
  • Team members: 18.00%
  • Advisors and other third-party crypto token holders: 2.40%
  • DFINITY Foundation: 23.86%

Is The Internet Computer a viable Alternative Coin?

Yes, The Internet Computer is a good alternative coin based on:

  • Hacking – There have been no successful hacking attempts on the blockchain of The Internet Computer
  • Security – The technology and measures that The Internet Computer uses ensure robust security
  • Transaction speed – The Internet Computer runs at web speed.
  • Technology – The Internet Computer has some of the most innovative technology, including Chain Key Technology, novel Consensus, Non-Interactive Distributed Key Generation, Network Nervous System, Internet Identity, and more.
  • Potential Investment – While The Internet Computer is still a new cryptocurrency project, it has a lot of potentials to become a valuable investment
  • Future Uses – The Internet Computer has a wide range of future uses, which will place it at the front line with DeFi and related technologies.

Any cryptocurrency that isn't Bitcoin is referred to as an altcoin.

What are the differences between The Internet Computer And Bitcoin?

Others may compare The Internet Computer's stunning market launch to Bitcoin's – both were greeted with enthusiasm and acclaimed for their promise to revolutionize how we use technology.

The rapid price rise of ICP mirrors that of Bitcoin in 2013 when BTC suddenly became a wealthy maker. The Internet Computer is a subset of the public internet that can effectively disrupt several businesses. However, in terms of market value and adoption, Bitcoin still reigns supreme.

 

  Bitcoin The Internet Computer
Price change 20/21 +400% -94%
Market Cap $800 Billion+ $4.29B
Past Hacks None None
Popularity Very High Medium
Altcoin Rank #1 – Original Crypto #39

 

What are the differences between The Internet Computer and Ethereum?

Decentralized finance is a hot topic right now in Ethereum, referring to conventional financial products like home mortgages created on the blockchain. From banks to governments, blockchain eliminates intermediaries and keeps a record of everything.

The Internet Computer is new blockchain technology. Unlike other cryptocurrencies like Ethereum, ICP does not employ either Proof of Work or Proof of Stake, but instead, it makes use of queries and calls.

 

  Ethereum The Internet Computer
Price change 20/21 +880% -94%
Market Cap $460 Billion+ $4.29B
Past Hacks None None
Popularity Very High Medium
Altcoin Rank #2 #39

 

What are the differences between The Internet Computer and Dogecoin?

Dogecoin (DOGE) is a decentralized cryptocurrency that has gained a lot of traction in the cryptocurrency market in recent years. It is an altcoin and a snarky meme currency. Dogecoin was developed in 2013 to mock the Bitcoin mania. 

Dogecoin is a value transfer medium in the cryptocurrency space. The Internet Computer is the world's first blockchain that operates at web speed, serving content on the web without friction or limitations on capacity.

 

  Dogecoin The Internet Computer
Price change 20/21 +7,300% -94%
Market Cap $22 Billion+ $4.29B
Past Hacks None None
Popularity High Medium
Altcoin Rank #12 #39

 

What are the differences between The Internet Computer and Neo?

NEO distinguishes itself from other popular blockchain systems by putting a strong emphasis on regulatory compliance. When compared to other blockchain systems, which offer digitized assets and smart contracts, the unique feature of NEO is its “digital identity.”

 

  NEO The Internet Computer
Price change 20/21 +160% -94%
Market Cap $1.70 Billion+ $4.29B
Past Hacks None None
Popularity Medium Medium
Altcoin Rank #69 #39

 

What are the differences between The Internet Computer and NFTs?

A non-fungible token (NFTs) is a digital asset that each has a unique value, with no two NFTs holding the same characteristics or value as another. The Internet Computer, on the other hand, is fungible, which means that one ICP has the same value and characteristics as another ICP.

 

What are the differences between The Internet Computer and Solana?

Solana is a blockchain network that allows network participants the ability to create currency like Ethereum and other programmable blockchains. Solana and The Internet Computer are two different projects that aim to achieve different objectives.

Solana is becoming one of the fastest blockchains that can process a massive number of transactions per second, while The Internet Computer can process transactions at web speed.

An advancement of smart contracts, the Internet Computer is a blockchain that allows developers, companies, and entrepreneurs to design, construct, and deploy safe, autonomous and tamper-proof containers.

 

  Solana The Internet Computer
Price change 20/21 +9,300% -94%
Market Cap $54 Billion+ $4.29B
Past Hacks None None
Popularity Very High Medium
Altcoin Rank #5 #39

 

What are the differences between The Internet Computer and Cardano?

ICP's price is significantly higher than that of ADA, while Cardano has a larger market capitalization. In addition, the circulating supply of ADA surpasses that of ICP.

Cardano is also much more popular and has shown greater appreciation over the past year.

 

  Cardano The Internet Computer
Price change 20/21 +2,100% -94%
Market Cap $42 Billion+ $4.29B
Past Hacks None None
Popularity Very High Medium
Altcoin Rank #7 #39

 

What is the DFINITY Foundation

With over 100,000 academic citations and 200 intellectual property rights between them, the DFINITY Foundation in Zurich, Switzerland, was the driving force behind the conception and inception of the Internet Computer.

The DFINITY Foundation is home to some of the world's most respected cryptographers, distributed systems experts, and programming language experts.

 

What is the aim of the DFINITY Foundation?

DFINITY aims to be the very first blockchain that can handle endless amounts of processing and data.

Their mission is to create an open-access Internet where developers may construct the next era of mega-applications. Timo Hanke is the Engineering Head. To boost the efficiency of Bitcoin mining, Hanke designed AsicBoost.

For scalable and fault-tolerant distributed algorithms for consensus and secure multi-party computation, Mahnush Movahedi joins from Yale.

Former BLS cryptography is employed in Threshold Relay to produce randomness, security, and speed on a decentralized network. Andreas Rossberg co-designed DFINITY's WebAssembly virtual machine.

After receiving $61 million in February 2018 from Andreesen Horowitz and Polychain Capital, DFINITY established itself as one of the most significant projects being built during a cryptocurrency bad market.

DFINITY sought to construct “The Internet Computer” to compete with Amazon's Amazon Web Services. ICP went live on May 10th, 2022.

 

Can a blockchain function without smart contracts?

Yes, several blockchains do not use smart contracts. The purpose of smart contracts is to make doing business and trading between anonymous and identifiable parties easier, even eliminating the need for an intermediary.

A smart contract reduces the formality and expenses associated with traditional techniques while maintaining the integrity and legitimacy of the transaction.

 

What are the advantages of using smart contracts?

The advantages of smart contracts are:

  • They are autonomous and do not require the participation of brokers or other third parties to ratify the agreement, hence eliminating the possibility of manipulation by third parties. 
  • Because there are no intermediaries involved in smart contracts, it ensures that the overall costs involved with contracts can be reduced.
  • They provide backup – All the documents kept on the blockchain are copied many times, allowing for the restoration of originals in the case of a data loss incident.
  • Safety – All smart contracts are encrypted, and this ensures that documents cannot be infiltrated.
  • Speed – Smart contracts can automate different tasks by using complex computer protocols, saving people hours that would have been spent on carrying out tedious processes.
  • Accuracy – Smart Contracts can eliminate errors that could stem from the manual processing of documents.

 

What are the disadvantages of using smart contracts?

The disadvantages of using smart contracts are as follows:

  • Difficult to change smart contracts, and any error in their code can be time-consuming and expensive to fix.
  • There is an increased possibility that loopholes may occur when relying on the concept of good faith.
  • Smart contracts aim to eliminate the need to get third parties involved, but they cannot be effectively eliminated. Third parties take up the roles from ones that they would in conventional contracts. For instance, lawyers may not be needed to draft individual contracts, but developers will be needed to create codes for the smart contracts instead.
  • The risk is that terms may be vague because complex terms are not always understood, leading to smart contracts being unable to handle such terms and conditions, resulting in the vagueness of such.