The ICP token launched on 10 May this year has rapidly entered the top 10 of the global cryptocurrency rankings. In the midst of useless “crypto-methods” such as Dogecoin (DOGE) and Shiba Inu (SHIB), ICP stands out by offering a seemingly innovative project. With the concept of the “Internet computer”, the Dfinity foundation is aiming for nothing less than the creation of a Web 3.0 free of GAFAM and security flaws.
Who created the concept of the “Internet computer” and launched the cryptocurrency associated with the project?
ICP (for “Internet Computer Protocol”) is a cryptocurrency launched on 10 May 2021 on the most influential exchange platforms in the cryptosphere, such as OKEx, Huobi, Binance, Gate.io and Coinbase.
This new token is one of the key stages in the roll-out of a wider project: the creation of an “Internet computer”. This concept was invented by Dominic Williams, a well-known entrepreneur and cryptocurrency theorist. He set up the non-profit foundation Dfinity in 2016 in Zurich, with the aim of bringing the project to fruition.
As of 2018, the foundation has attracted highly influential investors, most notably Andreesen Horowitz, whose venture capital firm is known for launching Twitter. In all, Dfinity has received $195 million in funding.
What is the “Internet computer”?
In a nutshell
The “Internet computer” is not just a cryptocurrency. The concept primarily refers to a protocol based on blockchain technology. It was designed with the aim of creating a fully decentralised Web 3.0.
How does the Internet work today?
To understand the “Internet computer” project, we need to look at how the Internet works today. Today’s Web 2.0 is already based on a decentralised organisation. It is made up of millions of networks (public and private) that communicate with each other using data transfer protocols. In short, the Internet has always been “the network of networks”: it has no single nerve centre, and so cannot be described as a “centralised” network in the strict sense of the word.
However, many web functionalities and services are based on a real infrastructure and on certain essential software. For example, the Internet is linked to a large number of web servers. These computing devices (software and hardware) host a large number of resources.
They are essential for data storage and processing, especially since the proliferation of cloud computing services. These allow access to a wide range of functions without having to download or install a programme directly onto a computer.
What’s more, companies and individuals now depend on anti-virus software and firewalls to protect their data.
Although the Internet operates in a decentralised way, some of its functions require the use of services that depend on a centralised infrastructure. Today, these services (web hosting, cloud computing, firewalls, etc.) are dominated by web giants such as Amazon Web Services, Google and Microsoft. With the “Internet computer” project, Dominic Williams wants to challenge their hegemony by proposing a network that does without the services offered by the GAFAMs. For example, businesses would no longer have to pay for website hosting or cloud storage services.
[bctt tweet=”Project #crypto ICP, the challenge of the #InternetComputer that wants to go beyond the limits of the Web” username=”coinaute”]
Innovations proposed by the Internet computer
The Dfinity Foundation’s project aims to move all the Internet’s services and functions directly into the blockchain. The Internet would therefore become a kind of giant computer, operating on the same principle as the Ethereum blockchain.
Dominic Williams talks outright of “Blockchain singularity”, an expression that describes a future in which all digital activities would be carried out solely on the blockchain.
On the “Internet computer”, hosting a site or creating an application would be done directly using “smart contracts”, which can already be used to code on the blockchain. So there would be no need to use third-party, pay-as-you-go services.
Overcoming the technical limitations of blockchain to make it as fast as the web
However, the “Internet computer” project comes up against a major technical limitation: the slowness of transactions on blockchains. Transactions are completed in 30 to 60 minutes on a blockchain like Bitcoin, which is nowhere near the speed of the web. To remedy this problem, Dfinity has announced the launch of a technology called “Key chain”, which will enable “smart contracts” to be updated and modified in a matter of seconds.
To improve its performance, the Internet computer also relies on the computing power of “independent data centres”, not just miners. In order to participate in the project, these centres must obtain authorisation from the Nervous Network System.
This is the algorithmic governance system of the “Internet computer”, on which every user can vote for proposals as long as they have ICP tokens. The project is already supported by 48 data centres on several continents.
To demonstrate the speed and potential of this new blockchain, Dfinity has already presented a number of applications based on its environment. These include a TikTok clone called CanCan and a professional social network similar to LinkedIn (Distrikt).
ICP courses since its launch and reception of the project
ICP prices
As soon as it was launched, the ICP token reached 4ᵉ place in the global cryptocurrency rankings. Today it is in 8ᵉ place, with a price of €271.13 at the time of writing. As we can see, ICP is therefore attracting many investors.
Hardly surprising, when you consider that it is positioned as a competitor to the GAFAMs, and in particular to the cloud computing industry, which is worth more than $300 billion.
However, the project is far from unanimous. Several analysts question its relevance and innovative nature. This is the case of David Nage, the director of a company specialising in digital assets. Writing in the Financial Times, he said: “It doesn’t look like they’re doing anything new. The market has already matured and produced real applications that are useful today”.
Conclusion
Propelled to the top of the global cryptocurrency rankings as soon as it was launched, the ICP token is now referenced by the most recognised exchange platforms. Its price is now one of the highest in the cryptosphere. If the “Internet computer” project comes to fruition, it could revolutionise blockchain technology and make some of today’s computing obsolete. The ICP token is therefore worth keeping a close eye on.
