What is DFINITY (IOU)?

What is Dfinity’s Internet Computer?

The Internet Computer Protocol (ICP) is a new type of blockchain network that makes the internet faster, safer, and more fair. It was created by the DFINITY project, which was founded in 2015 by Dominic Williams. The ICP aims to fix the problems of the traditional internet, like companies having too much control over our personal data and internet services being slow and unreliable.

The ICP is different from other blockchain networks in three main ways: it has a simple user interface that anyone can use to create decentralized applications; it runs on a decentralized network of machines around the world, not just on central servers; and it processes transactions really quickly.

The ICP is like a "world computer" that can run all kinds of internet services without relying on traditional IT like databases and web servers. Developers can use smart contracts called "canisters" to build services that interact with the web and other blockchains. Users of these services can log in securely using their own devices, like their phone or laptop, and can even earn tokens for helping out with tasks like content moderation.

The ICP uses its own token, called ICP, to reward users and help run the network. The ICP aims to change the way we use the internet by making it more decentralized and fair for everyone.

Quick Facts

• The Internet Computer Protocol (ICP) is a blockchain protocol developed by Dfinity Foundation.

• The goal of ICP is to create a secure, decentralized, and efficient network for building and running internet-scale applications.

How Does ICP Work?

The Internet Computer blockchain is like a big computer that runs on a network of special machines called "node machines". These machines are owned by different people all over the world, and they connect to each other using a special protocol called ICP.

The Internet Computer blockchain uses a new type of cryptography called "chain key cryptography", which allows it to create public "chain keys" and sign messages using private key material that's spread out across the network. This makes it possible for connected devices to verify the authenticity of artifacts from the Internet Computer blockchain without needing lots of data.

The Internet Computer also has something called "subnet blockchains". These are independent blockchains that can work together to increase capacity, sort of like how different parts of the internet work together. Applications can interact with subnet blockchains securely without needing a local node, and new subnets can be added to increase capacity.

The Internet Computer is controlled by a master blockchain called the Network Nervous System (NNS), which tells the node machines how to structure the network. Canister smart contracts run on the Internet Computer and can do all sorts of things, like managing accounts and signing transactions on other blockchains.

DFINITY created the ICP protocol

The Internet Computer is a new technology created by the DFINITY Foundation, a nonprofit organization that was established in 2016. The founder of the project is Dominic Williams, a talented developer who has been working on the technology for several years.

The purpose of the Internet Computer is to create a decentralized platform for hosting web applications and services. It is designed to be a new type of blockchain that is capable of running complex applications at scale, in a way that is efficient, secure, and reliable.

To achieve this goal, the DFINITY Foundation has assembled a team of researchers and developers from around the world, including some of the top minds in the fields of cryptography, computer science, and engineering. These experts have contributed their knowledge and expertise to help create the Internet Computer, which was officially launched in May 2021.

What is the ICP token used for?

ICP is a special type of digital currency that provides the fuel needed to run the Internet Computer. The Internet Computer is a decentralized network of computers that can be used to build decentralized applications, or dapps for short. ICP holders can also use their tokens to vote on proposals that will shape the future of the network.

To vote, users create "voting neurons" which allow them to either vote manually or automatically by following other neurons. The more ICP tokens a user holds, the more weight their vote carries.

How to Buy ICP token?

To buy ICP , you will need to:

1. Set up a wallet that supports the storage of ICP. Some options for ICP wallets include DFinance, Trezor, and Ledger Nano.

2. Find a cryptocurrency exchange that supports the purchase of ICP. Some popular exchanges that offer ICP include Binance, Bitfinex, and Kraken.

3. Create an account on the exchange of your choice and complete the necessary identity verification processes.

4. Deposit funds into your account using a payment method supported by the exchange.

5. Search for ICP on the exchange and place an order to buy it using the funds in your account.

6. Once the order is complete, ICP will be credited to your account on the exchange. Make sure to transfer it to your wallet for safekeeping.

It is important to note that the process for buying MATIC may vary slightly depending on the exchange you are using. Be sure to carefully read and follow the instructions provided by the exchange to ensure a smooth and secure transaction.

It is important to carefully research and compare different validators and staking pools before deciding which one to use. Be sure to consider factors such as fees, reputation, and track record when choosing a staking service.

What influences ICP’s price?

There are various factors that can influence the price of the ICP token. Some of the most important ones are:

1. Supply and demand

Like any other asset, the price of ICP is largely driven by supply and demand dynamics. If more people want to buy ICP than sell it, the price will go up, and vice versa.

2. Adoption and usage

The more people use the Internet Computer platform and its associated applications, the more valuable ICP becomes. As the platform gains more adoption, the demand for ICP is likely to increase, which can lead to a rise in its price.

3. Investor sentiment

Investor sentiment can have a significant impact on the price of ICP. Positive news and developments about the platform and its applications can boost investor confidence, leading to higher demand for ICP and a corresponding increase in its price.

4. Competition

The Internet Computer is not the only blockchain-based platform that enables decentralized applications. The level of competition and innovation from other blockchain platforms can influence the demand for ICP and its price.

5. Regulatory developments

The regulatory landscape for cryptocurrencies and blockchain-based platforms is constantly evolving. Changes in regulations and government policies can have a significant impact on the demand for ICP and its price.

It's important to note that the cryptocurrency market is highly volatile, and ICP's price can fluctuate rapidly in response to various factors. As with any investment, it's important to do your own research and consider the potential risks before investing in ICP.

Final Thoughts on ICP

The cloud computing industry is growing rapidly and is expected to reach a value of $1 trillion by 2026. To support this growth, Dfinity has received almost $101 million in funding, which can be used to help third-party teams build applications, tools, and protocols for the platform.

Dfinity has an ambitious 20-year roadmap, and to get things started, the Dfinity Foundation announced a $200 million fund in May 2020 to attract developers to build on the project. The foundation believes that this will help create a vibrant ecosystem of dapps on the platform.

Currently, there are already several dapps that are up and running on the Internet Computer.

One of the advantages of decentralized systems is that stakeholders have an incentive to ensure the system stays simple and cost-effective. As more developers believe that the Internet Computer is the place to build and more users adopt these decentralized systems, stakeholders will continue to work together to maintain and improve the platform.