Introduction to Internet Computer
A world where software will be replaced by smart contracts, the “intelligent contracts” we are all familiar with: the entire Internet Computer project is based on this very vision.
We’ll take a look at one of the most well-known and ambitious networks around, trying to understand everything that could be useful to potential investors, but not only. ICP is in fact a very interesting idea that goes beyond the simple reasoning of investing or not investing. Let’s find out why.
As we do with every article of this type, we’ll start from the basics, and then move on to the more technical aspects. We’ll then shift the focus to the project’s coin and where it can be purchased.
So let’s start with the most obvious question: what is Internet Computer?
Index
What is Internet Computer?
Internet Computer is a project that focuses on smart contracts, far more than other projects such as Ethereum, which has flourished thanks to these special contracts. Let’s find out why.
Internet Computer is a blockchain that hosts smart contract containers, designed and developed to create a World Computer capable of replacing the traditional IT sector. More specifically, ICP would like to be the home of the Web 3, from various services to decentralized applications, including hosting.
The project has its roots back in 2015. However, it took many years to materialize the vision because a lot of work was needed from numerous experts in various computer and cryptographic fields. The blockchain Internet Computer was launched in May 2021 and today it is one of the most well-known players around.
The structure of Internet Computer
The consensus algorithm of this network is called Proof of Useful Work, a variation of Proof of Work specifically developed by the Internet Computer team to significantly improve performance.
At the center of this reality is a set of cryptographic protocols known as Chain Key Cryptography. These allow multiple blockchain subnets to be combined into a single network. The great advantage that follows from this feature is the possibility of horizontally scaling the volumes, data and computations of the Canister Smart Contracts.
Canister Smart Contracts are SC containers that host code and data. They are specific to ICP and are in fact an evolution of classic smart contracts. They can perform various functions and therefore support numerous applications, whether they are a DEX, a messaging platform or a simple website.
What changes for users and developers? More potential and scalability; all with the highest possible security. In addition, there is no need for any intermediary, which is not guaranteed in other blockchains, where the main structure is often centralized or supported by servers/clouds.
Governance, managed through the Network Nervous System designed by the team, therefore becomes fundamental. This allows the community to maintain control over decision-making processes according to the mechanics of a DAO, but not only that. In fact, it is possible to update and improve the protocol itself without the need for a fork, one of the most delicate operations (and sometimes a reason for friction and infighting) in some networks.
So many innovations with a single objective: to grow the Web3 world and, above all, to make it completely on-chain, disconnected from traditional IT. There are many reasons for pursuing this goal, including:
- Reducing costs
- Significantly lowering risks
- Promoting transparent management
- Improve the end user’s experience as much as possible
For now, Internet Computer is doing well, but we are still a long way from the final objective of the mission, also due to the high level of competition in the sector.
ICP internet computer: tokenomics
Let’s discover the cryptocurrency Internet Computer, or ICP. Let’s start with tokenomics.
ICP does not have a maximum supply and has two opposing mechanisms: one inflationary, the other deflationary.
Coin inflation occurs in two specific events:
- Governance participants receive new ICP tokens
- The nodes obtain a share of newly minted coins as a reward for the computational and memory power they offer.
Deflation, on the other hand, occurs through a burn mechanism that is triggered to pay for computational power and space. We must remember that the Internet Computer is a sort of global mega computer; the coin therefore plays an essential role in feeding the dynamics of the network.
The inflation of the coin started from 10% per year, but over time it will stabilize around 5. As for the deflationary mechanism, the greater the user base and the use of the network, the more coins will be burned and eliminated from circulation.
At the time of writing, the ICP supply amounts to approximately 530 million coins, of which 481 million are in circulation.
According to data provided by CoinMarketCap, the allocation of Internet Computer crypto is divided into the following percentages:
- 52.61%: seed/private sale
- 20.06%: early backers
- 14.56%: strategic round
- 10.11%: pre-sale
- 2.66%: community airdrop
The price trend was not particularly exciting. At launch, ICP was worth over $428 per unit. In about a month, the figure plummeted below $40, then recovered and started heading downwards again.
Below is the real-time chart on the trend of Internet Computer ICP, offered as always by TradingView:
There are three main cases of use:
- “gasoline” for the cycles, burned at computational power;
- assets to be staked in the DAO;
- store of value that allows people to invest in the project.
Where to buy ICP
Being an established cryptocurrency, part of a well-followed project, ICP is available on most centralized crypto exchanges. Among the various names, we mention Binance, Coinbase, Bitget and Bybit. There is also no shortage of companies such as OKX, Kraken and Crypto.com.
Each exchange has pros and cons, with an offer suitable for certain categories of investors. Consult the tutorials linked above to learn more about each one and choose which one is right for you.
"ICP è disponibile sulla maggior parte degli exchange crypto centralizzati"
Final considerations
The concept that Internet Computer is promoting is innovative and aims to really take us into Web3, moving away from the established schemes and players of Web2. However, there is still a long way to go and it will take time to realize this image (at least in part).
Since its launch, the project has worked very well and continues to do so. However, the coin’s performance has not been exciting and the common investor may have problems positioning himself on an asset of this kind. As often happens, the price of a crypto does not reflect the intrinsic value of the related project, at least in the first years of its life. So we will have to wait and see if all the pieces actually fall into place. In the meantime, there are many risks.
We must also consider the competitors. The Internet Computer idea is excellent, but it is not being pursued by this company alone. In fact, there are many networks that are developing to fulfill at least part of the tasks targeted by ICP. For example, with many differences, Polkadot also focuses on the idea of a global Super Computer (where decentralization reaches higher levels).
In short, attention is needed in this sense too, because Internet Computer is not alone out there.
