What Is Internet Computer Protocol (ICP) – Its Price, Investment Benefits And Uses
The ICP crypto is the native token of the ICP Blockchain network, which is used to reward the users on the platform. The Internet computer crypto might sound like just another cryptocurrency, but it has differentiated itself by its idea of decentralising the World Wide Web.
Some tech giants such as Meta, Amazon, Google, and Microsoft control the web now in the sense that they have control over a huge database of information of billions of individuals.
The ICP cryptocurrency aims to challenge this system and build a safer web space for everyone. What intrigued Dfinity to take such measures is the substandard security system, abuse of user data, and domination over the prevailing internet system.
How Does ICP Work?
Internet Computer has the objective to decentralise the existing internet system. As we know and utilise the web today, some tech giants have complete control over a huge database of information that private data centres monitor under their control.
If any of these data centres are hacked or face any irreparable damage, the entire chain will shut down, which also leaves the data at risk.
The ICP crypto network offers a more secure alternative to this system by incorporating open source software or code into the web. It will function fully based on the users’ feedback. An internet network with open source code allows its users to scrutinise, enhance, modify and share the code with anyone for the required purpose.
The network will run on the fees collected from the users based on the computing power required by the developer.
Also Read: DeFi (Decentralised Finance) in Crypto: Meaning, Types of DeFi Tokens and How to Buy Them
What are ICP Tokens?
ICP crypto token is the native utility token of the Internet Computer Protocol network. These tokens are used to vote on proposals that shape the future of the network. The ICP token holders have the power to govern the network.
Participating data centres can earn ICP tokens for showcasing good behaviour on the network, which they can use to pay for transaction fees. One can also trade these coins on various crypto exchanges.
What are the Pros and Cons of ICP?
The idea of changing the way the internet works without any cooperation from the tech-giants has fascinated many people. But let’s understand the positive and negative effects it could bring along.
First, let’s look at the advantages of the Internet Computer Protocol:
- Enhanced security: Dfinity claims its cryptographic checksum is even more advanced than that of Ethereum.
- Endless potential: This is a fairly new project which is still under development, so the potential it holds is unlimited.
- Compatibility: The Internet Computer Protocol is compatible with smart contracts, which makes it available for decentralised app development.
- Speed: It is probably one of the prominent advantages of ICP. Dfinity claims it can process a transaction within two seconds.
Now, looking at the disadvantages, ICP is fairly new to the system, and it has faced quite a lot of struggle in the primary years. The kind of change it aims to bring has stirred doubts among the people about its intentions.
What is the Future of ICP?
The idea of ICP is fascinating if you think about it. If it successfully does what it has set out to accomplish, it will change the way the internet functions and how it is now, forever. The internet is controlled and modified by a larger group of people who have direct access to a global data system.
Changing the status quo is quite challenging; however, creating a cloud-based internet that is powered by a decentralised system is not impossible.
The world of cryptocurrency has been evolving continuously, and the future of ICP looks positive.
What Makes ICP Unique?
ICP is unique considering the very idea that it wants to revolutionise the web system. To illustrate its exclusiveness, you can refer to these factors:
- The end users do not have to pay transactional fees for smart contracts or canisters that run on the “reverse-gas” model.
- Users don’t need to own any crypto asset to start with ICP.
- ICP is built with a four-layer consensus mechanism consisting of a random beacon layer, an identity layer, a blockchain layer, and a notary layer- which makes it secure and also resistant to vector attacks.
How Does the ICP Compare With Ethereum?
Ethereum is considered the most sought-after crypto coin, whereas ICP is still emerging but has caught the public’s attention with its objective. They differ fundamentally from each other in their objectives.
Ethereum works towards offering technology stacks to dApps for moving and allocating digital assets. ICP, on the other hand, tends to modify the whole internet system by decentralising it.
Also, Ethereum uses smart contracts for automation of transactions; ICP uses canisters that run on a “reverse-gas” model, making it ultra-scalable.
Both of them also differ from each other significantly in terms of speed. Ethereum struggles with transaction confirmation time even if it charges higher fees, whereas ICP finalises its transactions within 5 to 10 seconds.
Is ICP a Good Investment?
When ICP was first launched in 2021, it set a record by ranking fourth on the crypto chart based on crypto market capitalisation. It still holds a mentionable position in leading crypto exchanges. Considering its current position, growth potential and controversies around it, ICP can be a good investment for investors who are passionate about changing the status quo.
Also Read: What is Staking Crypto and How does It Work?
Final Word
Internet Computer Crypto has the potential to bring revolutionary changes to the current internet system. If implemented successfully, it will provide an opportunity for innovation and growth along with a more accessible & secure networking structure.
Currently, Dfinity has the largest Research and Development team in the crypto world, and they are working towards transforming the World Wide Web.
FAQs
Ans. CanCan is what Dfinity describes as “decentralised TikTok.” It is a social media and video sharing platform and a sample DApp launched by Dfinity to exhibit ICP’s ability.
Ans. Dominick Williams primarily started developing the Internet Computer Protocol in 2016. He later launched the Dfinity foundation in May 2021, which is a non-profit organisation based in Switzerland.
Ans. One can buy, sell and trade ICP on popular crypto exchanges such as Binance, Kraken, Coinbase Pro, and Huobi Global. Users of the ICP network can also get the tokens as rewards.
Ans. Dfinity has managed to gather a significant amount of funds from notable investors such as Polychain Capital, Multicoin Capital, SV Angel, Aspect Ventures, and ZeroEX. It aims to change the power hold that tech-giant companies currently have on the World Wide Web.
Ans. There are currently 240 million ICP crypto tokens in circulation. However, the total supply of the ICP cryptocurrency is capped at approximately 484 million.
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Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions.
Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.
This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
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