What exactly is the Internet Computer (ICP) by Dfinity?

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Dfinity intends to replace the cloud computing industry with its decentralized Internet Computer, as well as to construct a new generation of mega-applications on top of it.

Today, a small number of large technology corporations increasingly control Internet content, functionality, and data. One notable example is the mandated pricing adjustments that prompted Epic Games to sue Apple.

The Internet Computer, developed by the non-profit Dfinity Foundation, would rethink the Internet as humanity’s primary computational platform.

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The Internet Computer is a blockchain network that is safe, decentralized, and cost-effective, with the goal of expanding the capability of the Internet.

It is hosted on a global network of devices and is being utilized to power the next generation of mega-apps—decentralized versions of Uber, eBay, Facebook, and others.

How does the Internet Computer compare to similar blockchain platforms?

Nowadays, Ethereum is the undisputed leader of the cryptocurrency sector. Dfinity attempts to overcome Ethereum’s scalability issues without sacrificing security or decentralization, something another contender, EOS, has been chastised for.

According to Dfinity, the Internet Computer can complete transactions in one to two seconds. In comparison, Bitcoin takes about 10 minutes while Ethereum takes about 15 seconds (depending on network congestion).

However, Dfinity’s solution goes beyond blockchain technology. It intends to compete in the $370 billion cloud computing market and wean the globe off of its reliance on centralized server farms.

“The vision we have is that people essentially abandon traditional IT and buil

d on the public Internet.”

Dominic Williams

A timeline for the Internet Computer

  • October 2016: The project is founded by serial entrepreneur Dominic Williams.
  • May 2018: 50,000 registered participants receive ICP utility tokens in an airdrop.
  • August 2018: Dfinity announces raise of $102 million from accredited investors and venture capital firms.
  • December 2020: The Internet Computer’s alpha mainnet launches.
  • May 2021: The Internet Computer is launched into the public domain. Internet Computer Protocol (ICP) tokens are available on exchanges, and working dapps include Enso, a decentralized exchange (DEX) and DSCVR, the IC’s answer to Reddit.

How does the Internet Computer work?

The transaction verification procedure in many blockchain-based initiatives is dependent on mining, which is an energy-intensive and time-consuming operation.

To establish agreement, Dfinity employs a variant of the proof of stake technique known as Threshold Relay. In Dfinity’s version, nodes generate a random number known as a “random beacon.” This is used to choose the next set of nodes and to control the platform’s protocols. This method is known as the Threshold Relay Consensus model, and it is one of Dfinity’s most important weapons.

But the Internet Computer’s secret sauce is “Chain Key Technology,” which splits smart contract function execution into two types: “update calls” and “query calls.” This is what allows for super-fast transactions.

Meanwhile, the Internet Computer’s Network Nervous System (NNS) manages everything from its economics and upgrades to onboarding independent data centers and dedicated node machines.

What is the ICP token?

The ICP coin provides network gas and allows holders to vote on proposals that will define the Internet Computer’s future. Users build “voting neurons,” which allow them to vote either manually or automatically by customizing their neuron to follow other neurons.

ICP is accessible for trading on a number of exchanges, most notably Coinbase Pro, where it was listed immediately upon its introduction. It is also available on Binance, OKEx, and Huobi Global, among other exchanges.

Advantages

  • ? Infinite scalability.
  • ? Security—Dfinity claims it has a system of checks that are superior to Ethereum’s.
  • ? Compatible with smart contracts so decentralized applications (dapps) can be built on the platform.
  • ?‍? Highly experienced team.

Disadvantages

The protocol is not battle-hardened, and critics have claimed that there is a fair amount of proprietary code; the blockchain is carefully controlled, and the value of ICP is closely held.

What are Dfinity’s aims?

Dfinity hopes to offer the first blockchain that runs at web speed and can scale to support an infinite volume of computation and data.

The non-profit’s wider focus is on building an open-access Internet; the place where developers build the next generation of mega-applications.

How is the Internet Computer cheaper and more secure than today’s cloud computing?

Dfinity’s goal is to make it feasible to start and maintain an Internet business without relying on a third party, such as eBay or Facebook.

It employs a sharding-based approach to store data on the blockchain at a low cost.

Dfinity believes that by reinventing the IT stack, the Internet Computer will simplify the process of designing and sustaining systems.

Did you know?

Dfinity’s creator, Dominic Williams, thought up “Fight My Monster,” the fastest growing online kids’ game in Europe back in 2012.

The future of the Internet Computer

The cloud computing industry is projected to reach $1 trillion by 2026. Dfinity has received almost $101 million in funding, so can support third-party teams that want to build applications, tools and protocols for the platform.

Dfinity has an ambitious 20-year roadmap; to kick things off, in May 2020, the Dfinity Foundation announced a $200 million fund to attract developers to build on the project.

Several dapps are up and running on the Internet Computer already. They include Enso, a decentralized exchange (DEX), and DSCVR, a social network that resembles a decentralized version of Reddit.

If developers feel it is the place to create and consumers like decentralized systems, they will have an incentive as stakeholders to keep the system simple and cost-effective.

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