The internet Computer, also known as the first world computer (although this is up for debate), is a blockchain, like bitcoin or Ethereum. After receiving much hype during launch, many developers got ready to build dApps on top of this blockchain because of its robust features. Moreover, when the Internet Computer was launched there was a lot of buzz and the term ‘Ethereum Killer” was thrown around a lot. Did it kill Ethereum?
In this article we will take a deeper look at what Internet Computer is, and whether it has lived up to its name.
What is the Internet Computer?
The Internet Computer is a blockchain on which you can build web apps and decentralized applications. This is the short of it. While this project might want to market itself as some sort of ground breaking blockchain, the truth is, everything you can do on the Internet Computer, you can also do on Ethereum.
This blockchain is a product of Dfinity Foundation and received funding from quite reputable names in the industry. Some of them include A16Z, Ava Labs, Celo, Maker, Uniswap and many other traditional Venture Capitals. The fact that there were famous blockchain companies investing into this new blockchain (at that time) further cemented the idea that they were building something unique – and perhaps it was. We shall find out.
About Dfinity Foundation
Dfinity Foundation (2016) and is one of the main contributors of the Internet Computer blockchain. From their website, they aim to create a ‘blockchain singularity” – a hypothetical future point in time at which the growth of blockchain technology becomes uncontrollable and irreversible, resulting in unforeseeable changes to human civilization.
Dfinity Foundation comprises a huge team of over 270 members, all working towards the success of the ICP blockchain led by Dominic Williams, the Founder and Chief Scientist of the group.
How does the ICP Blockchain Work?
The ICP blockchain is more of the next Ethereum savior rather than the next Ethereum killer. Here is why:
ICP was built to become a great tool that takes up from where Ethereum ends, furthering the cause of a Decentralized Internet started by Ethereum. Due to this, ICP becomes a great potential investment for anyone who joins in early.
As a public blockchain network, IC blockchain’s work is to host fast and efficient smart contracts. Moreover, the blockchain will be able scale with unlimited capacity. Therefore, it doesn’t matter whether all of the 8 billion people in the world start using ICP, it will still run smoothly.
Since ICP has come to continue the work of previous blockchains, it only seems right there should be synergy between it and these blockchains – and there is.
ICP x Bitcoin x Ethereum
Bitcoin is a titan in the cryptoverse – it is the king of crypto. Bitcoin represents true decentralization and no other blockchain will ever become as decentralized as Bitcoin. On the other hand, Ethereum is a giant in space.
By sheer volume, Ethereum has managed to outdo Bitcoin several times in the past. Ethereum blockchain is famous for bringing Smart Contracts into existence – these programmable contracts gave birth to decentralized finance, NFTs, Metaverse, and a host of other products in the blockchain space.
It is for this fact that other blockchains should endeavor to work with and enhance Bitcoin and Ethereum blockchains, as ICP is doing.
Software Canisters
In short, these are smart contracts – software applications that exist the IC blockchain instead on Traditional Big Tech Clouds such as AWS, Google, and Azure. Such technology allows the creation of web3 apps that run seamlessly on the IC blockchain. Examples include DSCVR, a decentralized version of Reddit.
“They have all the qualities of a traditional smart contract plus added functionalities and memory to store software & user data, so they are a further evolution of smart contracts.”
Sunny, Dfinity Community
ICP, the native token of the IC blockchain is converted into cycles and these cycles (gas) are loaded into the Canisters and burnt during smart contract computation.
Bitcoin and Ethereum will continue existing, but the IC blockchain will pick up the slack that they left behind, providing users with an excellent Web3 experience.
ICP Tokenomics
The IC blockchain runs using the ICP token. There are a total of 493,136,578 ICP tokens and 279,544,287 of them are in circulation. ICP is deflationary since it is converted to cycles (gas) which are then burnt to facilitate the computation of Canisters in the IC blockchain. Here are some other utilities of the ICP token:
- ICP holders can participate in the governance of the IC by staking ICP in order to vote and earn voting rewards.
- ICP tokens are useful for to paying the entities who provide compute capacity by operating node machines.
- You can convert ICP into cycles, which are burnt as fuel for smart contract computation.
- ICP is also useful for investing in token sales of DAOs on the IC blockchain.
- ICP can also be used to pay for goods and services like NFTs, and subscriptions on IC and other supported blockchains.
ICP: A Technical Analysis
ICP has been in a falling wedge for the past 4.5 months now. This is a good thing since falling wedges are definite patterns and their breakout is usually strong.
The chart above shows possible resistance points in the event of a breakout. For traders these are good take profit (tp) zones. Additionally, since we are expecting a further crash from Bitcoin, it is given that the entire market will be affected. The red mark-down arrow shows this scenario.ICP could fall below $1 when Bitcoin crashes next. However, long term holders who continue to buy the dips will be rewarded handsomely.
The current price of ICP is $3.64.
Conclusion
This article is short with regard to the tons of developments going on in the IC blockchain. The purpose of the article was to give you a glimpse into what Dfinity Foundation was building and how it is going. Should IC blockchain developers achieve their vision, IC could become the world computer they envisioned. Please do your own research before investing in any project.
FAQ
What is ICP token?
ICP token is the main utility and governance token of the Internet Computer blockchain. It has a host of usecases within the IC blockchain.
Does ICP token have a future?
ICP token has a massive future because of what the IC blockchain can do. Additionally, because it is the ‘gas’ of the IC blockchain, ICP is sure to be around as long as its blockchain is alive.
Is ICP better than ethereum?
ICP is better than Ethereum in terms of scalability and transaction costs. It was also better in terms of energy consumption – that is up until Ethereum became a PoS blockchain and now that is no longer the case.
Is ICP a good investment 2023?
ICP is a great investment for 2023 and beyond. There are already great working Canisters on the blockchain, such as DSCVR and Distrikt. These are just a tip of the iceberg of what IC blockchain is capable of.
Vincent Munene is a freelance writer and a great blockchain enthusiast. Blockchain has changed his life in terms of financial freedom and in return, he likes to educate people and keep them up to date on everything blockchain. He is a Biochemist by profession and also loves to play the piano.
