Dfinity (Internet Computer)

ICP (Internet Computer) cryptocurrency

Internet Computer (ICP) is a decentralized open-source blockchain created by the Swiss company Dfinity Foundation. Its main goal is to improve the outdated IT industry and the Internet.

Internet Computer consists of several data centers scattered around the world. Each data center has several nodes that form a subnet. Each subnet is a separate blockchain, and blocks in each subnet can transparently create another block, even in other subnets. In fact, the network can't even distinguish between subnets during the block call, it's just a safe code function call. Users and developers interact with the ICP, and in the background, the ICP distributes computation and data across subnet nodes.

Merging into traditional PoW and PoS blockchains is not possible. This helps avoid having high-stake validator nodes that create the majority of blocks. Subnets can communicate with each other using chained keys, which are part of the unique cryptography developed by Dfinity.

Each subnet forms a Proof-of-Stake (PoS) blockchain, which uses a new consensus mechanism called Threshold Relay. They publish decentralized applications running on ICP. While regular dApps consist of a set of smart contracts, decentralized applications on an Internet computer consist of one or more containers. These are the basic structures for hosting code, services and applications. These are smart contracts that can automatically create new versions of themselves on other subnets to support new clients and can be used by other developers creating decentralized applications.

Because subnets are made up of multiple nodes running in powerful data centers, it allows transactions and applications to run at much higher speeds than traditional blockchains such as Ethereum. The architecture May uses to create containers is optimized for building decentralized applications and is also extremely versatile.

Any container can use the functions of another if it has shared permissions. To create an open service in a canister, the developer simply marks any of the shared functions as persistent and then transfers control of the canister to a management system that handles issues such as configuration and updating.

Another important difference between the Internet computer and other blockchains is the need for identification to interact with applications in the ICP. Internet Identity can be connected to a PC, smartphone or secure USB key. A wallet address is automatically generated for you after you create a user ID. The device that was originally used to create this internet identity becomes the one used for the transactions themselves, as well as the one required to add new devices.

ICP developers, led by the British creator of the platform, Dominic Williams, believe that the tools they have created can completely change the format of the global Internet. Technical solutions of the projects will turn the Internet into some kind of large decentralized network. This scheme, as conceived by the project representatives, will make the Internet faster and more efficient.

There are three possible options for interacting with the network:

Unlike the “regular” Internet, DWeb is better protected. For example, there is no point in a DDoS attack on a decentralized network: a simultaneous large number of requests that could bring down a regular Internet resource on the DWeb will be distributed across network devices and will not affect its operation. In addition, the problem of censorship is solved: it will be more difficult for the government to block any site - data will arrive on the user’s device from different places, and not from one server. With the help of DWeb, users will be able to exchange information with other users not through centralized services, but directly. ICP cryptocurrency is a tool for interaction on the DWeb network. A coin is a ledger entry divided into blocks and indicating a digital balance. When users purchase ICP coins, they have a tool to interact within the decentralized network. ICP coin holders can start managing the network in the NNS app. To start using it, they must go through an identification procedure.

ICP is the native token of the Internet computer. This allows investors to participate in management. The token is also required for official transactions and user rewards. Internet Computer tokens are not available for mining computer hardware, but can be obtained as a reward for supporting the network.

The ICP token performs the following functions in the NNS application:

Overview of the Dfinity project (ICP)

Since the early 2000s, Dominic Williams has worked in the field of distribution systems—databases distributed across multiple network nodes or computing devices. In 2014, he began working on algorithms for cryptocurrency platforms, and a year later he had a global idea, which became the beginning of the Dfinity project. In 2018, the Dfinity project was supported by large investors: the Andreessen Horowitz venture fund and the Polychain Capital cryptocurrency fund invested $102 million in it. Amino Capital, CoinFund, Aspect Ventures and Eterna Capital also invested in Dfinity. In total, the project raised more than $166 million. The coin managed to enter the top 10 most capitalized cryptocurrencies.

The development of the project took five years and four project phases (Copper, Bronze, Tungsten and Sodium), as well as alpha and beta versions of the main network within the Mercury phase. The Dfinity team conducted a token sale in 2017 and an ICP distribution in the summer of 2018. ICP coins were unlocked on May 7, 2021.

The project’s cryptocurrency is supported by many popular exchanges that conduct strict coin security checks. However, ICP failed to hold the attention of investors for long. This is also indicated by the continued decline in ICP after the start of trading.

There is a certain risk that the project tools will be unclaimed. Against the background of the loss of relevance of the Internet computer, the startup’s crypto rate may continue to fall. Since listing, the ICP token has lost more than 95% of its price.

Today, various IT giants rule the Internet. The ICP project takes an innovative approach and has already achieved success by releasing ICP tokens to the market. The team also demonstrated test applications running on 1,000 lines of code, as opposed to previous versions that ballooned to millions of lines. This became possible thanks to the creation of a new programming language called Motoko and the release of a terminal SDK for developers.

In the future, the development of Internet computers will need to receive support from IT companies and attract a lot of user attention. Currently, the Internet computer is more like a blockchain with a utopian concept. The idea of digital democracy attracted interest from blockchain enthusiasts and investors, but did not find mass support.

Advantages of Internet Computer (ICP)

Disadvantages of Internet Computer (ICP)