Internet Computer

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This content was generated by Whalee (BETA), an AI crypto assitant that analyses cryptocurrencies. Informations can be incomplete and/or erroneous. Please always double check and DYOR.

What is Internet Computer?

The Internet Computer (ICP) is a blockchain-based protocol designed to create a decentralized internet by connecting independent data centers worldwide. It allows developers to build and host decentralized applications (dApps) and websites directly on the blockchain, providing an alternative to centralized cloud services. ICP uses a novel consensus algorithm, threshold cryptography, and state machine replication to ensure security and scalability. The protocol supports smart contracts, which can handle HTTP requests and serve web assets, and is powered by the ICP token, used for governance, transaction fees, and rewarding network participants.

How is Internet Computer used?

The Internet Computer (ICP) is a blockchain-based network designed to provide a decentralized, scalable, and secure platform for hosting and executing smart contracts and other applications. Here are some key aspects of how ICP is used:

  1. Utility Token (ICP): The ICP token is used for various functions on the platform, including staking, governance, and payment for computation and data storage.

  2. Smart Contracts (Canisters): ICP uses WebAssembly as its virtual machine, allowing developers to write smart contracts in multiple programming languages. These contracts can handle HTTP requests, serve web assets, and interact with other blockchains and Web2 services.

  3. Decentralized Governance: Governance is achieved through a tokenized Decentralized Autonomous Organization (DAO) called the Network Nervous System (NNS), which allows token holders to participate in decision-making processes.

  1. Scalability: ICP's multi-subnet architecture enables infinite scalability by adding more subnets, each of which is an independent blockchain. This allows for the hosting of tens of thousands of canister smart contracts on each subnet.

  2. Security: ICP employs advanced cryptographic protocols, including threshold cryptography and chain-key signatures, to ensure secure interactions between canisters and other blockchains.

  3. Data Storage: Smart contracts on ICP can store arbitrary data in their WebAssembly memory and use a larger stable memory for upgradable contracts.

  1. Interoperability: ICP supports interactions with other blockchains and Web2 services through secure HTTP requests, enabling seamless integration with existing ecosystems.

  2. Node Machines and Subnets: The network consists of node machines running in globally-distributed data centers, which form subnets that operate independently and securely.

These features and functionalities make ICP a powerful platform for decentralized applications and a potential alternative to traditional internet infrastructure.

How do I store Internet Computer?

To store Internet Computer (ICP) tokens, you have several options:

  • Ledger Devices: Ledger Nano X supports ICP tokens and offers a secure way to store them. You can set up the ICP app in Ledger Live and transfer your ICP from Coinbase or other exchanges to your Ledger wallet.
  • NNS Dapp Wallet: You can store ICP utility tokens in the wallet embedded in the NNS dapp.
  • Community Wallets: Plug and Bitfinity wallets are also available for storing ICP tokens.

These options provide a range of choices for securely storing your ICP tokens.

How to buy Internet Computer?

To buy Internet Computer (ICP) tokens, follow these steps:

  1. Create an Account:

    • Binance: Register on the Binance website or app, and verify your identification.
    • Bybit: Sign up for a Bybit account, or log in to your existing account.
    • Kraken: Create a free account on Kraken's crypto exchange.
    • KuCoin: Create your free KuCoin account and secure it with a password.
    • Coinbase: Download the Coinbase app and start the sign-up process, providing a valid ID and proof of address if required.
  2. Add a Payment Method:

    • Binance: Choose from credit/debit cards, bank deposits, or third-party payment channels.
    • Bybit: Use a credit/debit card to buy stablecoins or BTC, then trade for ICP.
    • Kraken: Connect a funding method to buy ICP.
    • KuCoin: Add a payment method such as a credit/debit card, bank transfer, or third-party channels.
    • Coinbase: Connect a payment method like a bank account, debit card, or wire transfer.
  3. Buy ICP:

  • Binance: Click on "Buy Crypto" and select ICP, then confirm your order.
  • Bybit: Trade your purchased stablecoins or BTC for ICP on Bybit Spot.
  • Kraken: Buy ICP on Kraken's crypto exchange.
  • KuCoin: Buy ICP using your added payment method.
  • Coinbase: Search for Internet Computer, enter the amount you want to buy, and finalize your purchase.
  1. Store Your ICP:
    • Binance: Store your ICP in your Binance account or transfer it to a personal crypto wallet.
    • Bybit: Use your purchased ICP on Bybit Spot/Derivatives.
    • Kraken: Store your ICP on Kraken's exchange.
    • KuCoin: Store your ICP in your KuCoin account or transfer it to a non-custodial wallet.
    • Coinbase: Store your ICP in your Coinbase account.

Remember to carefully consider your investment experience, financial situation, and risk tolerance before buying ICP.

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History of Internet Computer

The history of Internet Computer (ICP) began in 2016 when Dominic Williams founded the DFINITY Foundation, a nonprofit organization dedicated to researching and developing the Internet Computer. The foundation aimed to create a decentralized internet by extending the internet with serverless cloud functionality and enabling secure software and open internet services.

In January 2017, the ICP token ledger was created using smart contracts on the Ethereum network, which included allotments for early contributors and investors. This was achieved through a groundbreaking non-interactive DKG (distributed key generation) and key re-sharing protocol devised by Jens Groth, a renowned cryptographer working at DFINITY.

The Internet Computer Protocol (ICP) was designed to be a decentralized, blockchain-based network that could host programs and data in the form of smart contracts. It uses a novel blockchain architecture, which includes advanced cryptography and a WebAssembly-based smart contract execution environment. The network is adaptive, self-governing, and self-updating, thanks to an advanced DAO called the Network Nervous System (NNS).

Before its official launch, a community of independent node providers was established to run the network from data centers around the world. The Internet Computer network underwent its genesis event and transitioned into a decentralized production mode in May 2021. This marked a significant milestone in the history of tech and blockchain.

However, the project faced significant attacks from other projects in the blockchain industry, which feared its capabilities. The DFINITY Foundation, being primarily a research and development organization, was initially ill-equipped to deal with these attacks, leading to disruptions.

Despite these challenges, the Internet Computer continues to evolve, with ongoing support from the DFINITY Foundation. The network is now controlled by ICP token holders, who participate in governance and decision-making processes through the NNS.

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How Internet Computer works

The Internet Computer (ICP) is a decentralized network that aims to revolutionize the way we use the internet by providing a more open, secure, and censorship-resistant platform. Here's how it works:

Decentralized Network

ICP is powered by blockchain technology, which ensures security and transparency. Instead of relying on a central server, ICP uses a decentralized network of nodes, each of which stores data and relays information to other nodes. This decentralized approach makes ICP more secure and resilient than traditional internet protocols.

Chain Key Cryptography

The core technology behind ICP is Chain Key cryptography, a breakthrough in computer science that enables a new level of security and functionality. Chain Key allows every computer on the network to independently verify the authenticity of each piece of data, ensuring that no malicious data can be injected into the system. This makes the ICP protocol incredibly secure, highly scalable, and efficient.

Consensus Protocol

ICP uses a novel consensus protocol that requires several machines to agree on which inputs to process and in what order. This ensures that the network maintains a coherent state even if some nodes have connectivity problems or are malicious. The consensus protocol is designed to be highly scalable and efficient, allowing ICP to support a large number of applications and users.

Subnets and Canisters

The Internet Computer is composed of multiple subnets, each of which is an independent blockchain running on node machines deployed in globally distributed data centers. Each subnet can securely host tens of thousands of canister smart contracts, which are bundles of WebAssembly bytecode and smart contract data storage. Canisters communicate with each other via asynchronous messages, allowing them to process requests and responses independently without blocking.

Governance

ICP governance is accomplished through a tokenized Decentralized Autonomous Organization (DAO) called the Network Nervous System (NNS). This decentralized approach to governance ensures that the network is controlled by ICP token holders, rather than a single entity.

Token and Staking

ICP tokens are the native cryptocurrency of the Internet Computer ecosystem. They are used to reward network participants and pay transaction fees. Users can stake ICP tokens to participate in the network and earn rewards. The staking process involves installing the NNS software on a computer and contributing to the network's operation.

Applications and Integration

ICP is designed to be highly scalable and can support a wide range of applications, including DeFi and Web3.0 applications. It can also integrate with other blockchains, such as Bitcoin and Ethereum, and interact with Web2 servers through secure HTTP requests. This allows ICP to seamlessly integrate with existing ecosystems and provide a more comprehensive platform for developers and users.

Overall, the Internet Computer is a decentralized network that leverages blockchain technology, Chain Key cryptography, and a novel consensus protocol to provide a more secure, scalable, and efficient platform for hosting applications and data.

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Internet Computer's strengths

Internet Computer (ICP) has several strengths that set it apart from other blockchain-based projects:

  1. Decentralized Governance: ICP employs a tokenized Decentralized Autonomous Organization (DAO) called the Network Nervous System (NNS), which allows for fully decentralized governance. This ensures that decision-making is distributed and not controlled by a single entity.

  2. Scalability: ICP's multi-subnet architecture enables it to scale practically without limits. Each subnet is an independent blockchain that can host tens of thousands of canister smart contracts, and the network can grow to thousands of subnets in the future.

  3. Chain-Key Cryptography: ICP uses advanced cryptographic protocols, including threshold cryptography, to ensure robust and secure operations. This includes chain-key signatures that enable interactions with other blockchains.

  1. Fast Transaction Processing: ICP's blockchain network is designed to run at web speed, processing transactions within seconds, which is significantly faster than many other leading cryptocurrencies.

  2. Decentralized Computing: ICP aims to create a decentralized internet by running its protocol on millions of computers worldwide, reducing reliance on centralized cloud services and providing better decentralization.

  3. Support for Web 3.0: ICP is designed to support the development of Web 3.0 applications, providing a decentralized alternative to traditional cloud services and enabling the creation of decentralized applications without the need for centralized authorities.

  1. Token Utility: The ICP token has multiple uses, including facilitating network governance, powering cycles to run decentralized applications, and rewarding network participants for good behavior.

These strengths position ICP as a powerful and innovative project in the blockchain and Web 3.0 spaces.

Internet Computer's risks

Internet Computer (ICP) faces several risks that could impact its performance and adoption. Here are some of the key risks:

  1. Market Manipulation: ICP's price was heavily inflated at launch due to FTX listing IP Futures before its official listing on Coinbase and Binance, which led to a significant price pump. This market manipulation has left a negative mark on the project's history and could deter potential users and investors.

  2. Regulatory Risks: The SEC has labeled ICP as a crypto asset security, which could lead to potential lawsuits and regulatory issues. This uncertainty could negatively impact the project's long-term prospects, even if it manages to win against the SEC.

  3. Centralization: While ICP is considered decentralized, the DFINITY Foundation and the Internet Computer Association hold significant voting power. This centralization could be a risk, although the voting power is decreasing over time.

  1. Protocol Weaknesses: ICP has several protocol weaknesses that need to be addressed to achieve its vision of infinite scalability. These weaknesses include limitations on instruction, memory, and storage, which could hinder its growth and success.

  2. Negative Perception: ICP has faced negative propaganda and misconceptions, which could impact investor confidence and adoption. Addressing these misconceptions and providing accurate information is crucial to counteracting this risk.

These risks highlight the challenges ICP faces in terms of market perception, regulatory compliance, and technical development.

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Did Internet Computer raise funds?

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Internet Computer’s team

  • Dominic Williams: Chief scientist and founder of Dfinity Foundation, the builder and main contributor to the Internet Computer Protocol. He is a prominent figure in the development of the Internet Computer and has been vocal about the limitations of traditional blockchains and the potential of the Internet Computer to revolutionize the web.

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