The Internet Computer (ICP) is said to have the potential to revolutionize the Internet. But what is behind it and what makes the technology unique?
How does the Internet computer work?
Before going into the functionality of the Internet computer, it is first important to know the function of protocols. The Internet is currently organized by many different protocols. Protocols are standards and norms that are laid down. These belong to certain layers and have the task of ensuring a functioning connection between network participants and of transporting data packets. If an Internet application is to be built, it must be compatible with protocols. The problem, however, is that many protocols and base layers are managed by large companies. It is almost impossible for small companies or private individuals to be able to access them.
DFINITY founder Dominic Williams, who has been working on the Internet computer since 2016, wants to solve this problem. The Internet computer is supposed to be a hodgepodge of IT basics, this enables almost everyone to build their own Internet applications. Protocols are also used here, but unlike conventional protocols, they are managed in decentralized data centers. The network of the Internet computer can also provide computing power for users.
Internet computers and cryptocurrencies
The Internet computer uses blockchain technology just like Bitcoin, Ethereum and Co. The network uses its own token. The “ICP” token allows users to create smart contracts and these can be converted into “cycles”. Cycles are the currency that makes it possible to build decentralized applications on the protocol. The project was launched on May 7th, 2021 and the token was already traded on May 10th, 2021 on the Coinbase crypto exchange. Just one day later, the market capitalization was put at over 50 billion US dollars.
Conclusion on the Internet computer
The Internet computer has the potential to solve a major problem. However, the project has recently been extremely hyped and one has to wonder whether the evaluation of the ICP tokens is justified. In addition, the DIFINITY Foundation itself holds 41 percent of the tokens in circulation.
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