ICP is a blockchain-based decentralized network launched by DFINITY, a Swiss-based cryptography foundation. It’s one of the most popular web 3.0 projects designed to allow users to create websites, apps, and other web-based services without having to deal with a centralized authority like Google, Amazon, Facebook, etc.
The main goal of this cryptocurrency project is to introduce a refined version of the web in a more decentralized form. Dominic Williams, the founder of Internet Computer (ICP), claims that the project has the capacity to challenge internet giants including Facebook, Google, and Amazon Web Services.
The Problem with Existing System
For most websites and applications, developers are likely to host them on servers in data centers that are owned by big tech firms. The problem with this type of system is that the developers don’t get complete control of their data.
These corporate web-services providers can censor the content of a website/application if it doesn’t comply with their terms and conditions. Furthermore, these service providers can also use the data for their personal benefits whenever they want.
How Does ICP Work?
ICP is trying to solve this problem by providing a blockchain-based alternative to cloud services allowing developers to host their websites/applications in a more decentralized way. ICP is dedicated to supporting transparent software development.
ICP will bring together different independent data centers from around the world to provide a public internet to the users. The developers can use this network to host any kind of application including social media platforms, Defi (Decentralized Finance) apps, and more.
The network charges a fee based on the amount of computing power needed to run the website/application. The fee is then distributed among independent data centers that are contributing to establishing the ICP network.
Internet Computer is incorporating a number of technologies to establish a safe and secure network.
Chain Key Technology
Chain Key Technology makes it easy for every user to verify the authenticity of different artifacts on the internet as it orchestrates the nodes of the ICP network with the help of multiple cryptographic protocols. It executes the calls in milliseconds allowing the ICP network to run at web speed.
This protocol is a bit similar to the Mac address as it establishes the identity of a user on different websites and communities.
Network Nervous System (NNS)
Network Nervous System is an open governance system that updates information about different nodes based on the subnet they belong to.
What Makes Internet Computer Different?
Unlike other cryptocurrencies, Internet Computer doesn’t only process transactions but it performs several other tasks that make it prominent among others.
It’s Introducing the Future of Intenet
Web 3.0 is the future of the Internet. We recently shared a detailed guide about how Web 3.0 is going to change the dynamics of the current internet world. So, Internet Computer has moved one step ahead to support the upcoming version of the internet. It’s giving everyone the opportunity to create software on its network without dealing with a centralized authority.
It Promotes Decentralization
Many people don’t know that most crypto networks run on the cloud while ICP’s network is designed on dedicated hardware that is managed by independent parties. Thus, it provides better decentralization than other cryptocurrencies.
Dfinity claims that its blockchain network runs at web speed. Thus, it processes transactions within seconds. On the contrary, most leading crypto networks take a few minutes for processing transactions.
Why ICP Became so Popular?
ICP was launched in October 2017 and within a short span of time, it established its position among the top 10 cryptocurrency projects in terms of market cap. There were several factors behind its immediate growth such as:
Its Outstanding Potential
ICP has planned to run its protocol on millions of computers worldwide. And it claims to outclass the cloud-based tech firms that are currently dominating the world of the internet. Moreover, it also claims to significantly reduce computing costs while providing fast speed.
Backed by Big Investors
Polychain Capital, Andreessen Capital, and Aspect Ventures are some of the big names that have invested a significant amount of money in this crypto project. Therefore, the small investors also felt safe about investing their money in this project.
What are the Use Cases of ICP Token?
ICP token performs several tasks within the network.
Facilitating Network Governance
The users can lock their ICP tokens to create “Neurons” if they want to participate in the governance of the network. They can then create proposals using these neurons. And the other participants will either accept or reject the proposal through the voting system. The participants then receive economic rewards from the network.
Production of Cycles for the Computer
The value that is stored in the ICP tokens can be converted into cycles. The network Nervous system completes this process at a variable rate. These cycles are then used to run different operations within the network.
Rewarding the Participants
The ICP token holders can play their role in establishing the decentralization of the platform. They need to create “Neurons” by locking their ICP tokens. Then they can start operating the node machines or they can participate in the voting and governance system to earn some rewards.
Are There are Any Risks Involved?
The major problem with the ICP network is that the participants need to deploy more robust hardware compared to traditional projects. It means only well-capitalized players will participate in establishing the data center. It may potentially threaten the ethos of decentralization.
Similarly, ICP isn’t the only network that is claiming to reinvent the internet but other players like MIT’s Solid and IPFS/Filecoin are also preparing for this revolution. So, they may attract more investors if their protocol is stronger than ICP.
Web 3.0 is expected to be the future of the internet and ICP is one of the most important players of this upcoming revolution. ICP has planned to establish a strong network that will run on millions of computers worldwide. ICP is dedicated to eliminating the scalability issues of other crypto networks while establishing a new version of the internet.