Internet Computer (ICP): what is it and how does it work?

Internet Computer (ICP) is a type of cryptocurrency that can be used to build apps and websites (among other things). In this article, we will know more about it.

What is the concept behind ICP?

One way of networking, which is the foundation of cryptocurrency, is that it can only be used in an even more decentralized way. ICP can be thought of as a decentralized computer network capable of running a new or different version of applications on the web. For this reason, the founder of the project claims that it has the ability to challenge internet platforms such as Google, Facebook and Amazon Web Services. There are decentralized finance applications mainly called DeFi (Decentralized Finance) in the market. DeFi applications can use cryptocurrency to copy (or modify) general financial processes.

He says that given Dfinity’s highly decentralized network, Internet Computer can scale its capacity as demand increases. Therefore, it would be more useful to think of the Internet computer not as a cryptocurrency (in the typical monetary sense), but as a network that uses blockchain technology to power applications.

What is special about Internet Computer (ICP)?

Internet Computer (ICP) is known as the world’s first blockchain running at web speed with unlimited capacity. It also represents the third biggest blockchain innovation alongside Bitcoin and Ethereum, a blockchain network that scales smart computing and contract data, runs it at web speed, processes and stores data efficiently, and provides powerful software frameworks to developers. By making this possible, Internet Computer ensures that the software is completely redesigned and presented, in other words, it provides a revolutionary new way to create tokenized Internet services, pan-industry platforms, decentralized financial systems and even traditional business systems and websites for crypto. trade like bitcoin billionair.

Internet Computer’s goal is to expand the public Internet and thus become the global computing platform. Today, the Internet is a network that connects people and information, but currently systems and services are managed from private infrastructure. Scientific Breakthrough Behind Internet Computer, New Consensus, Non-Interactive Distributed Key Generation, Neural Network System, Internet Identity, etc. It is blockchain technology, which encompasses dozens of advanced technologies such as Blockchain technology consists of a set of cryptographic protocols that regulate the nodes that make up the Internet computer. It is also one of the fundamental breakthroughs behind Internet Computer, allowing it to have a unique public key. This is a huge advantage as it can enable any device including smart watches and cellphones to verify the authenticity of products from the internet computer. However, this is not possible for traditional blockchains.

Blockchain technology is the engine that powers the internet computer and enables work. It makes it possible to add new nodes to the network to evolve ad infinitum and create new sub-networks, that is to say constantly replace faulty or broken nodes with new ones; It allows the network to fix bugs and add new features by refreshing subnets and transparently updating the Internet Computer Protocol, even if too many nodes fail in it.

The DFINITY R&D team invented the new Non-Interactive Key Resharing Protocol. This means that each of the old signatories is only required to broadcast one message to the new signatories. To ensure this is done securely, many concepts are used, from continuous secrecy encryption and advanced non-interactive encryption (including zero-knowledge proofs).

The key is ideal for an asynchronous environment and its benefits include key protection. The lifetime of a subnet is known by a unique public key, and other parts of the Internet computer do not need to keep track of public keys. Since the operation of the key sharing protocol is non-interactive, it is ideal for an asynchronous environment and has advantages such as switch protection. A subnet is known by a single public key for its lifetime, so other parts of the Internet computer do not need to track variable public keys.

Who founded Internet Computer?

The Internet Computer Project (ICP) was founded by Dominic Williams in October 2016 and has received considerable attention from the crypto community. DFINITY has raised a total of $121 million from contributors including Andreessen Horowitz, Polychain Capital, SV Angel, Aspect Ventures, Electric Capital, ZeroEx, Scalar Capital, and Multicoin Capital, as well as several key Ethereum backers. In 2018, over 50,000 registered participants received the ICP service token with Airdrop. On December 18, 2020, DFINITY launched the Internet Computer alpha mainnet. On May 10, 2021, DFINITY released the internet computer to the public, a step towards decentralization.

Who manages the Internet Computer (ICP) network nodes?

On May 10, 2021, at the Genesis (Genesis) block, Internet Computer began to be supported by 48 independent data centers located in North America, Europe and Asia running 1,300 nodes. The Internet computing network will continue to grow exponentially to support the next generation of mega-centralized applications, with 123 data centers running 4,300 nodes planned by the end of the year, and thousands of data running millions of nodes to support the fabric decade. It will become an open system and, more importantly, anyone can become a node provider. Interested parties can apply for the neural network system for data center identification, purchase special machine nodes,

What is the speed of the Internet computer network?

Blockchain key technology, which is a scientific invention, allows the Internet Computer to run at web speed, query calls are executed in milliseconds, update calls take 1-2 seconds. More importantly, in the Genesis block, Internet Computer will have a block rate of 2.5 blocks per second, then quickly reach 10.3 bps (block per second) and around 1000 bps by the end of the year . In the case of an open version of Reddit running on the Internet Computer, custom views of existing content are formulated, providing user experience by executing query calls and presenting them to web browsers through the node operating within milliseconds nearby .

What does the ICP token do?

Internet computers are known as local utility program tokens which play an important role within the network. These roles are:

Facilitate network management

ICP tokens can be locked to generate neurons that participate in network management through voting, where they can earn financial rewards.

Generation of cycles for the calculation

The ICP provides a source value memory that can be converted into cycles, calculating the power of the fuel burned when used. NNS (Neural Network System) converts ICP to loops at a variable rate, so it’s best to ensure that network users can always create new loops at an approximately constant cost. Thus, the cost of acquiring fuel is also at predictable levels.

Reward participants

The network creates new KPIs to reward and incentivize those who play a key role in the operation of the network, these are known to provide vote rewards to those who participate in administration, provide vote rewards to those who operate the node machines hosting the network and various other Activities.

What do loops do?

Cycles are about calculating power in the role of fuel. They have a fixed long-term value, which contrasts with the KPI, the value of which will naturally change over time. Also, the cycles will be pegged to the SDR, a currency defined by the International Monetary Fund, and 1 SDR of ICP can be converted to exactly one trillion cycles in the power calculation.

What do neurons do?

A neuron locks the ICP service token balance, allowing the owner to participate in network management, where they can earn voting rewards.

Who are the general buyers of ICP tokens?

Buyers of ICP tokens are known as token holders who want to participate in network administration and earn voting rewards, and developers who need to convert ICP tokens into cycles to pay for computation.

How does the nervous system of the Internet computer network work to vote?

NNS (Neural Network System) works by taking proposals created by network participants and deciding whether to approve or reject them based on the voting activity of neurons. Neurons are also used by participants to present new proposals. Once submitted, proposals are accepted or rejected after a short time, depending on the vote of the sum of neurons.

What are the flagship projects of the Internet ecosystem?

Internet Computer was launched with several high profile entrepreneurs and applications built on it. These:

DeFi (decentralized finance)

Enso Finance, the decentralized exchange that raised $5 million,

Tacen, a high-performance fiat exchange raising $2.5 million,

SailFish is known as a gateway to open financial services.

Social

Distrikt defines itself as a decentralized and professional social media network. It is known as the Open LinkedIn application, presented by DFINITY at the WEF (World Economic Forum) 2020 in Davos and now published.

OpenChat, the open version of standard chat apps that isn’t owned by a big tech company,

CanCan is an open version of TikTok, demonstrating the scalability and power of Internet Computer,

Capsule claims to have raised $1.5 million as a censorship-proof decentralized social media platform.

Infrastructure

Fleek makes it easy to build open websites and apps. Currently, it operates 14,000 industry-wide websites and platforms.

Origyn refers to a pan-industry platform to track the origin of luxury goods, starting with luxury watches.

Maria D. Ervin