What Is Internet Computer (ICP) How It Works & Where To Buy It?

Internet Computer (ICP) transitions the internet from a public network to a public compute network. It aims to connect billions of people to innovative blockchain applications and tools, running at web speed.

Internet Computer (ICP) has recently gained a significant amount of attention in the crypto space and is currently the 37th largest cryptocurrency by market capitalization.

 

How Internet Computer (ICP) Works

The internet computer protocol, which can also be seen as a blockchain computer protocol, achieves functionality through its network nervous system (NNS) and specialized node machines. Internet computer protocol quickly became one of the most popular blockchain projects after the ICP token surged to more than $500 in 2021.

Data centers host the node machines, which are combined to create subnets. Subnets facilitate the hosting of canisters – complex compute units with interoperability functions that are uploaded by users.

The induction of independent data centers is handled by the network nervous system – a permissioned system that accepts or refuses requests to join the network.

Additionally, the network nervous system monitors the specialized nodes, and network, and is tasked with analyzing statistical data for deviances that could be indicative of faulty behavior. The NNS also has the integral role of creating new ICP tokens that are used for rewarding nodes.

Subnets are tasked with hosting software canisters – a subnet can only be formed by grouping node machines.

Canisters communicate with each other and can be invoked in two ways: an update call or a query call.

The intricate technology allowing ICP to achieve these momentous tasks is what has garnered the project an immense amount of attention and investment from institutions and retail investors.

The ICP whitepaper has a more detailed description of the blockchain protocol and its functionality.

What Is Internet Computer (ICP) Used For?

Essentially, the Internet Computer will serve as access to a decentralized network of blockchain-based applications, innovative tools, and more – while running at web speed.

The ICP token on the other hand serves as the protocol’s governance token. It’s utilized in rewarding nodes, computational cycles for the network, and facilitating network governance.

Users also trade internet computer (ICP) much like other cryptocurrencies. The price volatility of cryptocurrencies allows traders to make a profit by swing trading or arbitrage trading.

 

Where To Buy Internet Computer (ICP)

Internet Computer (ICP) has recently risen in popularity and it experienced its highest trading volumes in November 2021. It has quickly grown to become a well-known protocol and cryptocurrency.

You’ll be able to buy, sell, and store ICP tokens on most centralized crypto exchanges. To be able to purchase these tokens, you’ll need to deposit fiat money onto an exchange, and sequentially ICP tokens will be credited to your ICP digital wallet on the exchange.

Five of the most popular crypto exchanges used by US traders are:

1. Gate.io
2. HTX
3. KuCoin
4. BitHumb
5. Crypto.com

 

About Internet Computer (ICP)

How long has Internet Computer (ICP) existed?

Internet Computer was initially launched by DFINITY in 2019. However, its development was started already in 2016 by a developer named Dominic Williams. The Internet Computer Association is responsible for the team’s direction.

The ICP token was launched in 2021 and experienced inflated price surges to more than $400 – currently, ICP is more modestly trading at $17).

The idea was to merge the public internet, enterprise systems, and internet services with blockchain, in the most seamless and secure way. Essentially, the Internet Computer network, at its core, would be an infinite blockchain that serves the web.

The launch was highly anticipated and many people in the crypto space positioned the ICP project as one of the most revolutionary blockchain developments to date.

What’s controversial about Internet Computer (ICP)?

The crypto market is fast-growing and new crypto projects are being introduced to the market at a rapid rate. So, understandably there are often controversies involved in this market.

Let’s take a look at the top two controversies surrounding Internet Computer (ICP)

• The ICP Token Plummeted In Value – The ICP token launch was surrounded by excitement – retail investors couldn’t wait to get their hands on the ICP token.What followed next was a vicious downward spiral in the tokens price, leaving retail investors frustrated and concerned as the price quickly dropped from $440 in November 2021 to $17 by April 2022.
• Not Much Different From Existing Projects – Ever heard of the phrase “there are many ways to skin a cat” – this phrase is especially true when it comes to crypto projects. Essentially, blockchain projects predominantly aim to solve the archaic blockchain trilemma.Decentralization, security, and scalability – multiple projects on the market claim to solve the blockchain trilemma. Most of the projects making these claims have made significant adoption advancements in the crypto space. ICP will need to compete with dozens of projects aiming to solve very similar issues.

How many Internet Computer (ICP) tokens are there?

At the time of writing, ICP has a circulating supply of 224,756,444.61 ICP (39% of the total supply).

The total supply of Internet Computer (ICP) is 480,270,846 ICP.

Can Internet Computer (ICP) be mined?

Internet Computer (ICP) is not a mineable cryptocurrency and it doesn’t utilize a proof of work mechanism.

However, many individuals earn yields by staking the token – ICP rewards are given to nodes and network participants. Some centralized exchanges also offer staking rewards for ICP holders that lock up their tokens for a certain duration.

What is the market cap of Internet Computer (ICP)?

To understand the market cap of Internet Computer (ICP), it is the total amount of coins in circulation times the current market price of ICP.

Internet Computer (ICP) Market Cap = 224,756,444.61 ICP x $17,27 = $3,88 billion (37th largest market cap).

Internet Computer had a market cap of $54 billion at its peak in November 2021. Currently, it is still one of the top 50 cryptocurrencies by market capitalization and continues to grow in popularity as the project attracts more investment and users.

The market cap fluctuates according to circulating supply and market price.

 

Biggest Competitors Of Internet Computer (ICP)

The Internet Computer project is very ambitious in its goal of concealing internet identity and merging the blockchain and web world on a global scale. They claim this can be done, although only mass adoption will tell if it can be done effectively.

Many projects, like Distrikt, a community-owned professional network with more than 70,000 users, are already becoming popular DApps in the IC ecosystem.

However, complex issues the majority of retail investors don’t understand and don’t typically take the time to try and understand are the biggest hindrances to many new projects.

The truth of the matter is that retail investors want to join decentralized projects with excellent user adoption that work. Unfortunately for many new projects, this proves to be a continuous struggle.

The biggest competitors of ICP are Polkadot and Cosmos. Both of those projects have achieved scalability, security, and decentralization on a major scale.

In terms of efficiency, these projects are able to create interoperable networks, customized blockchains, and facilitate data sharing almost instantaneously.

What Are The Future Plans For Internet Computer And ICP Token

Internet Computer extends the functionality of old and new, with a seamless and secure transition – open internet services hosted by a decentralized protocol. What makes the idea of internet computer work, is that it essentially takes us off-grid in a sense.

Furthermore, the reverse gas fees are superior to current gas models by projects like Ethereum. The internet identity mechanism would mean that our data is truly decentralized and private.

The concept is incredible but the longevity and adoption of this project are going to require some innovative strategies to win over users in a market that’s oversaturated with crypto projects.

The team continues to prioritize user adoption, network security, and the expansion of its ecosystem.

 

Pros And Cons Of Internet Computer And ICP

Pros:

• 1 Second Finality – Transaction finality is typically sub 1 second and with a capacity of more than 10,000 transactions per second
• Reverse Gas – The tokenomics ensure that developers accommodate for gas fees necessary to interact with their decentralized applications – the reverse is in place with projects like Ethereum. Essentially, you’re able to mint NFTs for free using IC DApps.
• Faster and Cheaper Than ETH and BTC – Internet Computer is both faster and cheaper than traditional popular blockchains like Bitcoin and Ethereum.
• Smart Contracts – The use of smart contracts make it appealing for developers to deploy DApps in the IC ecosystem.

Cons:

• ICP Token Price Crashed Significantly – There was a huge amount of hype surrounding the ICP launch and the token price initially soared after launch. ICP reached a high of $440 but later went on to see drastic depreciation.
• Claims Can’t Be Tested Without Mass Adoption – A certain amount of risks remain in the project’s claims. Without mass adoption, the network and its capacity can’t truly be tested and this leaves retail investors at risk.