Internet Computer (ICP)
Internet Computer (ICP) is a blockchain network designed to facilitate the creation of web-based services on a secure and decentralized protocol. It operates using the Internet Computer Protocol (ICP) token, formerly known as DFN. This utility token is crucial for various functions within the network, including powering applications, paying transaction fees, rewarding participants, and making governance decisions.
History
The idea for the Internet Computer was conceived in early 2016 by Dominic Williams, the chief scientist and founder of the DFINITY Foundation. DFINITY, a not-for-profit digital foundation, developed and maintained the project for five years before its official launch. By 2018, DFINITY had raised approximately $121 million through funding rounds, with significant contributions from Andreessen Horowitz, Polychain Capital, and others. Tokens worth about $35 million were released via an airdrop in 2018.
| Ticker | ICP |
| Category | Artificial Intelligence (AI) |
| Website | https://internetcomputer.org/ |
| @dfinity | |
| Telegram | +m8tiEFaaNR8xNjNl |
| https://www.reddit.com/r/dfinity/ | |
| Contract Addresses | |
|---|---|
| internet-computer | ry...ai Copied! |
The full development of the token began in 2019 with the release of Copper, and the ICP network went live in May 2021. This marked the beginning of a decentralized web platform capable of running web-based applications without third-party interference. The ICP network uses upgraded smart contracts known as Canisters. According to Dominic Williams, the ICP token represents a significant advancement in blockchain technology.
Overview
Launched in 2021 by the DFINITY Foundation, the Internet Computer aims to allow developers, enterprises, and businesses to build and deploy software on the "open internet." The network seeks to enhance and replace existing internet infrastructures with a decentralized global network powered by blockchain technology. This network is designed to support Web 3 and DeFi applications efficiently.
The Internet Computer operates using Chain Key Technology, which includes systems like the Network Nervous System (NNS), Internet Identity, and Threshold Relay Consensus. Thousands of nodes secure the network by forming subnets, which operate on a Proof-of-Stake (PoS) mechanism.
Network Nervous System (NNS)
The NNS governs the Internet Computer and is one of the largest DAOs globally. It operates as an on-chain, permissionless system, allowing ICP token holders to vote on network upgrades.
Tokenomics
The Internet Computer network utilizes two native tokens: ICP and Cycles. ICP is a control token used for network management, while Cycles function as a stablecoin for computation fees, similar to Ethereum's gas fees. Users can convert ICP tokens into Cycles by burning them, a process that is deflationary.
ICP functionality
The ICP token is integral to the operation of the Internet Computer blockchain. It serves several purposes, including:
- Node Provider Rewards: Node providers receive ICP rewards for offering infrastructure, with rewards varying slightly by geographical location.
- Governance: ICP token holders can stake their tokens to create Neurons, securing voting rights and participating in governance.
- Fuel for Computation/Storage: Canister smart contracts use Cycles, obtained by burning ICP tokens, to power computations.
- Transaction/Proposal Fees: ICP holders pay small transaction fees in ICP, contributing to deflation.
BTC and ICP mainnet integration
The integration of Bitcoin with the Internet Computer combines Bitcoin's liquidity with IC's smart contract capabilities. This allows the Internet Computer to function as a Layer 2 platform for Bitcoin, enabling smart contracts to manage Bitcoin transactions directly without intermediaries.
Internet Computer footprint
The Internet Computer ecosystem recently adopted NNS Proposal #55487 to establish a sustainability policy and carbon footprint for the blockchain. Carbon Crowd is developing the Internet Computer Footprint project to reduce the network's carbon footprint.
Funding
The project received financial backing from several contributors, including Andreessen Horowitz and Polychain Capital, raising a total of $121 million. In 2018, the DFINITY Foundation conducted an airdrop of ICP tokens to over 50,000 registered participants. The alpha mainnet of the Internet Computer launched on December 18, 2020, and was made public on May 10, 2021, with the release of its source code and the introduction of ICP's transaction and governance functionalities.