Internet computer protocol Token (ICP): Significance of ICP and its future

Cryptocurrencies and decentralized finance (DeFi) are hailed as essential. Both, though, rely on a centralized infrastructure – the Internet itself. The Internet Computer Protocol (ICP) and its associated ICP token seek to change that.

What is Internet Computer Protocol token (ICP)?

ICP is simply the first blockchain project to scale the Internet, not just the app or data storage layer. Individuals and businesses can deploy any type of software/content over the Internet without having to rely on monopolies like Amazon, Google, Amazon, Twitter, and Facebook.

The protocol can be used as a scalable and open-source project. All applications that previously relied on a central infrastructure can now run on-chain. ICP, along with Filecoin is key to Web 3.0. One that opens up the Internet to all again, using decentralized blockchains and smart contract technology to reconstruct its full-stack.

Consider how the MetaMask wallet now functions: it connects DeFi protocols through a single interface. ICP goes much farther, allowing smart contracts to communicate directly with one another and provide web content to the end-user.

Developers of ICP

The protocol was released in 2016 under the supervision of the non-profit Dfinity Foundation, which has offices in San Francisco, Zurich, Palo Alto, and Tokyo and employs over 200 developers.

They have almost 100,000 academic citations and impressive academic work. Dfinity raised nearly $195 million in funding rounds for the project's development during 2018.

Dominic Williams created the Internet Computer. He described ICP as creating a "new open Internet" by reimagining it "as a computer that hosts secure, superpowered software."

Williams is a cryptographic researcher, best known for inventing Threshold Relay (and Probabilistic Slot). Venture capitalists are the foundation's main investors, which include Amino Capital and Eterna Capital as well as Polychain Capital and Andreessen Horowitz.

Dfinity's first decentralized application (dApp) was launched at the World Economic Forum's Davos conference in 2020. LinkedUp, the app, was a decentralized version of LinkedIn. They also published CanCan, an open version of TikTok with under 1000 lines of code that can scale up with storage requirements.

The Internet Computer Protocol launched its first mainnet on May 7, 2021. According to its roadmap, the ICP-powered open internet should overshadow the closed internet within 20 years.

How does ICP work?

Although it is largely open-source, the Internet Computer's software is licensed under Apache License 2.0. Some components are licensed under Internet Computer Shared Community Source License or Internet Computer Community Source License.

The network has been programmed by an entirely new language developed by the Dfinity Foundation, called Motoko. ICP's framework supports RUST as well as C languages.

The Internet Computer, which is similar to Cardano and soon-to-be Ethereum, is based upon the proof-of-stake consensus (PoS), but it consists of four layers, identity, random beacons, blockchain, notary, and notary.

ICP also uses canisters to execute actions instead of smart contracts. These canisters offer virtually infinite scaling potential thanks to their four layers.

The novel Chain Key Technology allows ICP to run at web speed. ICP's actions/queries can be executed in milliseconds, while its block rate speed should increase to 1,000 bps by year's end. Ethereum's June bps stands at 13.22.

The ICP token, which combines the power of all blockchain nodes, creates a unified platform that can host any type or scale of application. End-users can interact with the canisters and do not notice the differences with the currently closed internet.

What Makes the ICP Token Unique?

The Internet Computer, also known as DFN before it was renamed to ICP's Network Nervous System. (NNS) is the utility token. NNS, the governance protocol that manages the network, was first revealed in September 2020. It is made up of four parts:

• Data Centers - currently 48
• Current Nodes: 1,300
• Subnets are similar to Polkadot parachains
• Canisters - ultra-scalable smart contracts

To participate in governance, users must lock their ICP tokens as with all other blockchains. They become "Neurons" after being locked in for a period of time, allowing stakeholders to vote, with voting power proportionate to the amount of locked ICP tokens.

Moreover, each month, neurons yield voting rewards. Computer tokens can also be used to power dApps on ICP's Blockchain. Developers will need to convert Computer tokens to "cycles" to enable them to run the functions of the smart contract canisters.

The Internet Computer tokenomics, as seen in the infographic, is based on both inflationary and deflationary pressures, with an initial token supply of 469,213,710. The current circulating supply of ICP tokens is 128,985,798 ICP. Within a week of the Internet Computer token's mainnet debut, it had a huge market valuation of $71.8 billion, which was quickly reduced to $4.8 billion, with the computer token itself priced at $65.

Is Purchasing ICP Token a Good Idea?

Major crypto exchanges have listed Internet Computer (ICP tokens) so far: Coinbase and Binance, Huobi, and Gate.io.

Dfinity's stated mission was to combat Big Tech's monopolization, aggressive tyrannical behavior and monopolization. However, it is troubling that it revealed its first dApps at The World Economic Forum, the same body that pushes hypercentralization and total surveillance.

It is hard to overstate the academic backing of ICP. There is also no similar project, other than Filecoin which decentralizes data storage. Internet Computer is the name of the token. Although the branding is generic, it speaks to the Internet's highly desired, ambitious goal of making the Internet open again and making it fun.

Winding-up

I have discussed everything about Internet computer protocol token . One best thing I have noticed about Internet Computer protocol is its road map, It has a road map of 20 years . It indicates the goal of a project . Before investing in any coin, just make sure that you have done a good piece of research about the particular coin that you wish to buy.