More than a token or cryptocurrency, Internet Computer (ICP) is first a set of protocols. What do they allow? That’s the question.
All cryptocurrencies operate around a network or ecosystem. Most of the time, just blockchains. All this to offer a decentralized option to avoid the current centralized providers and how the economy works around them.
In the case of Internet Computer, the cloud is designed for Internet users before anything else, while the token is for governance in the system. It can be a bit hard to keep up with how protocols, systems, networks, and tokens work.
However, we are here to help you understand ICP a bit better (in this case), so you are able to determine why its popularity is rising in the last trimester of 2021.
What Is Internet Computer (ICP)?
Internet Computer is often used to refer to the protocols themselves and how the entire independent system works. Meanwhile, ICP is a reference to the token that can be used for governance.
The governance feature means that holders have the ability to vote on the future direction of the network. A second use or function inside the Internet Computer network is to reward the good stewards’ participants. It also helps to pay fees to make transactions.
The Internet Computer Protocol, or ICP, is more than just a digital currency. First, it can be bought and traded on exchanges such as Coinbase and Binance, but only one aspect comes with the potential of the token.
ICP’s main idea is to create a new type of decentralized internet and global computing system.
This would allow independent data centers around the globe to join forces to provide an alternative to cloud services (from companies such as Amazon Web Services or Google Cloud) that currently power the majority of the internet.
ICP plans to make the protocol available on millions of computers all over the globe.
The developers claim that the network offers some significant advantages over centralized alternatives. It operates on open standards and eliminates conflicts of interest when major cloud-computing providers host products that are not compatible with their own.
DFINITY was the original name of ICP, and you may find more information regarding its past than with the most recent name.
ICP’s distributed global network of data centers allows ICP to run all applications that can be accessed via traditional Internet standards like DNS, which is the domain system you use through web browsers on smartphones.
Overall, understanding the network can be considered basic since we can summarize it as a trading option that works with decentralized methods, just like any other network connected to cryptocurrencies.
On the other hand, the token follows the common principle as well: Work as the governance currency in the network that allows holders to vote on what to do in the blockchain.
But Where Does It Come From? – Learning About DFINITY
The formation of the blockchain and token for governance takes us back to 2014. DFINITY is the system’s creator, and many years of development were needed to get to May 7, 2021, when ICP was launched.
To understand a bit more, we need to dive into DFINITY claims and work.
The company’s main goal is to make sure that DFINITY’s Internet Computer replaces traditional IT and disintermediate large tech firms with its Internet Computer.
Thus, the goal was to set a public blockchain network hosted at a number of independent data centers all over the globe. DFINITY’s Internet Computer allows the software to run on the internet distributedly instead of using large corporations’ servers.
This allows you to create applications that no single entity controls or censors. It also gives you the chance to rebuild popular internet services such as social media apps in an open and decentralized manner.
DFINITY claims it runs at web speed and is highly scalable. Some functions take only milliseconds. The Network Nervous System (NNS) is the network’s autonomous algorithmic software system.
Its native utility token, ICP (previously called DFN), is what governs it. The DFINITY Foundation, an organization not for profit based in Zug (Switzerland), built the Internet Computer.
After extensive research on blockchain technology from 2014 to 2015, Dominic Williams, the company’s chief scientist and CEO, first proposed the Internet Computer Protocol (ICP).
Williams spent a lot of time analyzing various consensus mechanisms and Byzantine fault tolerance (BFT) during that time. Intending to improve upon BFT, he became convinced that many of the mechanisms had significant flaws.
This is how he spent several years going over the different elements of what ICP is today, but before releasing it, several components were announced in 2019 and 2020.
These include the launch of Copper, then Bronze, Tungsten, and Sodium. This is how several protocols and elements were named and introduced new systems and elements to the blockchain to improve its functionality.
How ICP Works In Specific
Although we have kind of explained how the blockchain and entire network work, we need to make sure it is clear since it continuously adapts to new protocols and codes added.
Essentially, the Internet Computer is a fundamental alternative to traditional software development, as mentioned before.
It allows developers to build, host and manage applications in a more decentralized cryptocurrency and manner, allowing websites to be directly deployed onto the internet. ICP will encourage open-source and transparent software development.
ICP can be described as a way to convert crypto into processing power. The network will charge a fee depending on how much computing power is required for a project. The website can be run on the public internet as long as this fee is paid.
The theory is that any type of application can be created on an Internet Computer. This includes software similar to the applications you already know and social networks like LinkedIn and TikTok.
ICP developers published CanCan open-source code as a demonstration to explain how the system and token work.
ICP’s Goals & Uses
As mentioned before, the token itself helps for network governance. In specific, they are locked to create what are known as neurons and allow users to participate in voting.
However, other uses focus on the production of cycles for the Computer and rewarding the participants in the blockchain.
For the first, the token acts as a source of storing value. This means it can be used to convert it into “cycles,” which are power computations and can be considered the fuel of processes.
The reward use lies in the basic concept of giving participants some sort of prize for their active transactions and voting.
With this in mind, DFINITY plans to cover more with the token in terms of goals established for future uses and purposes:
- The public network must grow.
In order for a technology platform’s utility to be exponentially growing, it must experience dramatic increases in usage.
Internet Computer facilitates such effects by allowing interoperability among diverse codebases and Blockchain systems at low costs through specialized smart contracts (canisters) similar to how traditional software systems integrate functionality from the software library.
- Privacy and security-focused systems.
Traditional IT uses proprietary and closed cloud computing services as well as databases, web servers, and middleware. These systems can be combined with software and stacks.
The Internet Computer aims to improve the security and privacy of traditional systems. It uses immutable encryption and key technology to facilitate in-network interaction.
- Reimagined smart contracts.
One of the largest expenses in the Information Technology industry is maintaining and building network systems.
DFINITY is a company that aims to make information system maintenance and development easier. For it, the business uses ICP’s smart contract (software canisters) version, which is designed to limit the complexity and scaleability of smart-contract development.
- Eliminating central intermediaries.
Many blockchain protocols rely upon intermediaries that enable users to interact with systems built using Ethereum smart contracts. These intermediaries are usually hosted on websites hosted on large cloud providers like Amazon Web Services (AWS).
This means that most web and mobile apps, including many blockchain-based ones, are hosted on traditional cloud service providers. These providers can be vulnerable to malicious code, security breaches, and poor privacy.
This could lead to similar problems for hosted applications. The Internet Computer is a platform that hosts smart contracts that direct content to end users’ web browsers.
This allows developers to create systems or services with an end-to-end security architecture, which can, in many cases, significantly reduce the chance of being censored or corrupted.
- Improved usability.
ICP is designed to improve the user interfaces of earlier crypto services by allowing users to interact directly with hosted online services. Its UIs are provided by smart contracts that interact directly with web browsers.
Users don’t need to have tokens or coins to pay transaction fees. Instead of creating accounts or completing “Know Your Customer” procedures, users can easily identify themselves using an autonomous cryptographic key via WebAuth authentication technology.
In many cases, this is as simple as scanning their fingerprints on their smartphone or laptop.
Why It Can Be Good to Invest in ICP
With so many tokens and blockchains available, it is only natural to be a bit confused about what to buy, choose, and use.
However, in the case of ICP, we would highly recommend betting for it.
Many have dedicated their lives to blockchain technology evolution, and DFINITY, along with the actual team from ICP, isn’t the exception. As a result, they are quite achieving a lot with the blockchain and the uses they want to cover together with the goals set.
If you ask us, the Internet Computer is a great example of what academia, reality, and science should be to achieve a major result.
Thanks to the effort, the creators should be able to create a sustainable blockchain capable of solving current limitations and offers more for what is used as a payment method today: Cryptos.
This is why many people who are investing in it and we consider it a good option. Although it was recently released, ICP will create a tsunami of innovation, growth, and opportunity.
It will also provide new ways to do things uniquely and interestingly in this industry.
With the Internet Computer price set at $47.30 and a circulating supply of 180 million ICP, we would suggest you take action before it skyrockets, considering the total supply is set a 469 million ICP.
The Bigger Picture: What We Think About Cryptocurrency
Too volatile to be the main option for investment.
It is a good idea to invest in cryptocurrency exchanges. However, you must consider how much prices can change and the fact that the market cap will be your best friend from now on.
It can be difficult to keep up with the cryptocurrency market cap. In addition, it is easy to lose money even if you invest in low-cost tokens (we can include ICP here).
It’s possible to start small and watch what happens. But how long can this work? It doesn’t feel right.
We have made investments in currencies, and ICP is part of our Binance currency account. However, we believe that local lead generation is more cost-effective than relying upon something you don’t know whether it will boom or sink to the bottom.
If you do decide to invest in this token or any other digital currencies, we offer friendly investment advice: Keep up to date with the market, and get instructions about when to buy or sell.
However, when it comes to actual business ideas and inversions, we would focus on actual business ventures.
For instance, you don’t have to take too much risk with lead generation, and there is no need to bet on a crypto market cap that will be more volatile than the wind.
It is possible to generate local leads much easier and more efficiently than most people think. If you put in the effort, you can easily make thousands of dollars. The investment is not minimal, but it’s also not a large one either.
What is the process? How do you get started? Is it possible to learn everything?
You can find all the answers right here!
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