What Is Internet Computer? | ICP Explained
Dec 20, 20225 min read
What Is Internet Computer?
Internet Computer (ICP) is a blockchain-based protocol designed to power the next Internet. Internet Computer (ICP) is a cryptocurrency and protocol launched by the DFINITY Foundation in 2020. It was created to address the scalability and decentralization issues of existing blockchains such as Ethereum. ICP uses a consensus protocol known as “Threshold Relay” which allows it to process more transactions per second than traditional blockchain networks.
ICP was founded by Dominic Williams, a British computer scientist who previously worked at Google and Microsoft. He envisioned a decentralized platform that would enable applications to run more efficiently than they could on existing blockchain networks. To make this dream a reality, Williams created the Internet Computer Protocol (ICP) which is based on his earlier research into “blockchain-like” technology.
The goal of ICP is to become a “Cloud 3.0” platform, allowing developers to create applications that are more reliable, secure, and low-cost than those built on traditional cloud computing platforms such as Amazon Web Services (AWS). To do this, it combines the speed and scalability of distributed ledgers with the security, trustlessness, and censorship-resistance of public networks.
Why Do We Need Internet Computer?
The Internet Computer is revolutionizing the way we use the internet. It promises to be a new form of global computing that is open, secure, and ultra-fast. The Internet Computer will be an essential part of our lives as it will provide us with access to applications, services, and resources that have never been available before.
The ICP token is used to pay for goods and services on the network as well as facilitate staking rewards. The ICP team has also developed a number of applications that are running on their platform such as a decentralized version of Google Docs, a decentralized LinkedIn-like job search application, and an AI-powered content curation system.
The goal of IC is to build an internet that is more secure, reliable, and efficient than ever before. The Internet Computer is able to host a variety of services such as web applications, streaming media, and software-as-a-service (SaaS) solutions.
One of the most exciting opportunities offered by Internet Computer is the ability to build services that are not reliant on centralized servers and resources. With a distributed architecture, developers can create services with unprecedented scalability, reliability, and security. By utilizing smart contracts and decentralized consensus mechanisms, these services can be trusted to provide accurate data and results without relying on a single entity.
Some of the services that can be built on Internet Computer include digital identity solutions, distributed storage networks, payment and remittance services, content delivery networks (CDNs), oracles and data feeds, and distributed computing and AI services. These services can enable new innovative applications in areas such as finance, healthcare, gaming, entertainment, media and more.
In addition to the ability to create new services, Internet Computer also enables developers to port existing applications from other blockchains and networks. This makes it easier for developers with existing deployments on Ethereum and other platforms to transition their services to the faster, cheaper and more secure environment offered by Internet Computer.
To encourage the development of innovative applications, Internet Computer offers developers a range of tools and support. These include a purpose-built SDK, documentation and tutorials, and access to a vibrant community of developers.
How Does Internet Computer Work?
Internet Computer cryptocurrency is based on Chain Key Technology, a revolutionary new way of making secure and efficient digital transactions. Chain Key works by creating a decentralized network of computers, called canisters, that form the backbone of the Internet Computer platform. Chain Key also uses NNS (Novel Networking System) to provide the underlying infrastructure for communication and data storage.
The Chain Key system creates a secure and efficient way of making digital transactions by using a combination of distributed ledger technology, canisters, cryptography, and consensus algorithms. This system stores data in the form of canisters, which are secure containers that contain encrypted information that can only be accessed by authorized users. These canisters are secured by Chain Key’s cryptographic algorithms, which prevent any third-party from accessing the data inside.
The Chain Key system also utilizes NNS (Novel Networking System) to provide a secure and fast network for communication and data storage. NNS is based on a peer-to-peer architecture that allows users to anonymously connect to each other in order to securely send, receive and store data. Chain Key’s NNS technology ensures that all data is securely stored and can be accessed only by authorized users.
Internet Computer also utilizes a consensus algorithm known as Threshold Relay to ensure that the distributed ledger remains secure and accurately reflects all transactions. Threshold Relay works by having multiple, anonymous nodes reach a consensus on what data should be included in the distributed ledger. This ensures that only valid and accurate transactions are recorded in the IC network.
The Internet Computer Protocol is designed to be more secure than existing blockchains because it does not rely on a single entity for consensus or validation. All transactions are publicly verifiable on Internet Computer, with validators rewarded with ICP Tokens for performing this service. This ensures that Internet Computer is secure, immutable, and resistant to censorship.
The ICP token is a digital asset based on the Threshold Relay consensus (variation of PoS). It has a total supply of 1 billion tokens, with around 10% used for initial coin offering (ICO). The remaining 90% are used to incentivize node operators who contribute computing power to the network. The total supply is also designed to be deflationary, meaning that a certain amount of tokens are burned or destroyed as rewards for miners and node operators. This helps to ensure the total value of ICP tokens remains stable and to provide long-term sustainability for the network.
The Threshold Relay consensus model was developed specifically for the ICP token, allowing it to provide secure and fast transactions with low transaction fees.
The PoS algorithm used for mining rewards requires node operators to stake their ICP tokens as collateral. The total amount of staked ICP tokens is constantly monitored and adjusted to ensure that the total supply remains stable. This prevents inflation, ensuring that the total value of ICP tokens does not decrease over time.
Internet Computer Protocol is a next-generation blockchain protocol designed to power the Internet of tomorrow. It utilizes Chain Key technology and Threshold Relay mechanism to create a secure and verifiable Internet. In the future, ICP plans to continue building out its platform and providing developers with more tools to create powerful decentralized applications. It also hopes to become one of the most popular cryptocurrencies as it continues gaining traction with developers and users alike. With its fast transaction speeds, low fees, and scalability, ICP could become the foundation of a new decentralized internet infrastructure.