What is Internet Computer (ICP)?
The Internet Computer is a general-purpose decentralized blockchain network developed by the DFINITY Foundation. The foundation's ultimate aim is to create an open, decentralized public network that can be used to host smart contracts and dApps at web speed and capacity. In contrast to conventional blockchains, the Internet Computer will not only offer unlimited storage capacity but will also be designed to support efficient software hosting and data processing at a speed no other cloud center can reach.
What Problem Does Internet Computer (ICP) Solve?
Problems Solved by Internet Computer:
Internet Computer addresses several fundamental issues in the current blockchain and internet infrastructure:
- Scalability: Traditional blockchains suffer from scalability. These have typically resulted in high transaction costs and slow processing speeds. Internet Computer introduces a scalable solution that does transactions with low latency in large volumes.
- Decentralization: At the same time, it allows smart contracts and dApps to run on a decentralized network, reducing the reliance on centralized cloud services, making something even more secure and resistant to censorship.
- Interoperability: Internet Computer advances more accessible interactions among various other blockchain networks and old IT systems, making it a breeze for developers to integrate the effective use of blockchain technology with existing infrastructures.
Why Does the Crypto Market Need Internet Computer (ICP)?
Benefits to the Crypto Market:
The crypto market derives the following values in terms of benefits from the uniqueness of the following features of Internet Computer:
- Enhanced dApp Development: Internet Computer provides a powerful platform for the development of decentralized applications, pulling developers with increased performance and scalability.
- Reduced Costs: By offering a decentralized alternative to traditional cloud services, Internet Computer can reduce operational costs for businesses and developers.
- Innovation Catalyst: The platform enables innovation—new kinds of applications and services that were previously impractical or too costly to implement on conventional means.
History of Internet Computer (ICP)
Internet Computer has been founded by Dominic Williams and developed by the DFINITY Foundation, a non-profit based in Zurich, Switzerland. The project was announced back in 2016, and after all these years of development, together with several funding rounds, it was finally launched in May 2021. The DFINITY Foundation raised quite some capital from some big-name investors, including Andreessen Horowitz and Polychain Capital.
Who Created Internet Computer (ICP)?
Internet Computer was created by Dominic Williams, a computer scientist and entrepreneur. With a background in distributed systems and cryptocurrencies, Williams started the DFINITY Foundation to develop and promote the Internet Computer network. The foundation consists of experienced developers and researchers in several domains.
What Technology Does Internet Computer (ICP) Use and How Does it Work?
The Internet Computer is based on several advanced technologies, which include the following:
- Chain Key Technology: This is the cryptographic protocol that makes the network infinitely scalable. These make it possible to add nodes to the network with no downtime in progress.
- Canisters: Smart contracts on the Internet Computer, running at web speed and able to scale computational capacity with internet size.
- Network Nervous System (NNS): A decentralized system that controls the network and, in doing so, allows token holders to vote on proposals as well as manage the operation of the network.
What Affects Internet Computer (ICP) Price?
The price of ICP is influenced by:
- Market Sentiment: News, developments, and the overall trend in crypto markets significantly impact the cost of ICP.
- Technological Advancements: Upgrades, partnerships, and growing adoption of the Internet Computer network can serve to boost token demand.
- Regulatory Environment: Alteration in regulatory policies and consideration of legal factors will tamper with investor confidence and market dynamics.
- Network Utility: The Internet Computer becomes more valuable as it hosts more applications and services.
How Many Tokens of Internet Computer (ICP) Are in Circulation?
464.5M ICP tokens tokens are currently in circulation.
What is the Maximum Supply of Internet Computer (ICP)?
Internet Computer maximum supply is 519.2M ICP tokens.
What is Internet Computer (ICP) Utility?
The functions of ICP within the ecosystem of the Internet Computer are:
- Transaction Fees: ICP is used to pay transaction fees on the network.
- Staking: ICP holders can participate in network governance and earn rewards using their tokens.
- Governance: With ICP, users are given the power to vote for governance decisions on how they decide actually to shape and influence the future of the network.
Tokenomics of Internet Computer (ICP)
The most essential elements of ICP are:
- Inflationary Model: New ICP tokens enter into existence through an inflationary model as rewards to participants for security.
- Staking Rewards: DFINITY allows its holders to stake ICP and be rewarded for participating in the network's consensus mechanism.
- Token Distribution: ICP was first distributed on private funding rounds and public sales to allocations to the DFINITY Foundation, the dev team itself, and early investors.
What is the All-Time High and All-Time Low for Internet Computer (ICP)?
ICP had an all-time high price, reaching around $750 in May 2021. The asset peaked well over $700 in May 2023 before tumbling to its all-time low of around $5 in June 2023.
Where to Buy Internet Computer (ICP)?
ICP is listed for trading on many of the largest cryptocurrency exchanges such as:
- Binance
- Coinbase
- Kraken
- Huobi
- Bitfinex
All of these provide different possibilities of exchange with ICP in terms of fiat (USD, EUR) or other cryptocurrencies (BTC, ETH).
Who Invested in Internet Computer (ICP) at an Early Stage?
Some of the most respected venture capital firms and institutional investors who made early investments in Internet Computer were Andreessen Horowitz, Polychain Capital, and SV Angel. These investors supported the project in several funding rounds, offering resources to develop and launch.
What Are the Revenue Streams of Internet Computer (ICP)?
How Internet Computer Makes Money:
- Transaction Fees: Collected from executing transactions on the Internet Computer network.
- Staking Rewards: ICP holders are rewarded for staking their tokens upon participation in overall security.
- Commercial Partnerships: These are partnerships with other blockchain projects and enterprises that use the Internet Computer network.
By addressing issues of scalability and usability, Internet Computer aims to provide a robust and secure platform for decentralized applications, thus encouraging innovation in the ecosystem.
