Internet Computer (ICP)

Internet Computer Token (ICP) Review

Internet Computer (ICP) serves as the proprietary digital currency of Internet Computer, which is a revolutionary decentralized blockchain-based platform. The platform aims to create a decentralized version of the internet that is independent of centralized cloud servers such as Amazon Web Services, enabling users to deploy websites, applications, and social networks in a decentralized environment. The DFINITY Foundation, based in Zug, Switzerland, is the mastermind behind the development of Internet Computer, which is a distributed alternative to traditional cloud servers.

Internet Computer, as a platform, operates on a protocol run by autonomous nodes located globally. The protocol determines how the nodes can allocate computing resources to various applications. The ICP token plays a crucial role in providing computing power, much like Ethereum's gas fees power the Ethereum blockchain. Additionally, the ICP token offers governance functionality to holders and stakers, allowing them to vote on development proposals.

ICP token operates on a dual mechanism that comprises inflationary and deflationary elements. The token incentivizes holders with new ICP tokens by participating in votes. However, the ICP tokens are burnt after being used to power transactions and computing processes. Therefore, ICP may become deflationary over time, particularly if the Internet Computer platform experiences widespread adoption.

How liquid is ICP?

ICP, the native token of the Internet Computer platform, has some interesting ratings and metrics that can help investors determine its potential for growth. The current ICP token supply is 126,502,138, with a maximum supply of 469,213,710, leaving plenty of room for the token to increase in value as the platform grows. In terms of network speed, the Internet Computer is blazingly fast, processing around 10,000+ transactions per second, which is equivalent to centralized computing providers, according to DFINITY developers.

ICP has a low disbursement rating due to the distribution of tokens being concentrated among developers and early investors in the Internet Computer platform. However, this may change as ICP becomes more widely traded and newly minted tokens are distributed to smaller network participants. The developer engagement rating is medium, with the Internet Computer team led by Dominic Williams, the CEO of DFINITY, and a former video game developer turned blockchain expert. The team recently launched a $220 million fund for developers, which is expected to attract more developers to the platform.

In terms of liquidity, ICP has a medium rating, having penetrated the top ten cryptocurrencies by market cap and quickly gaining listings on major exchanges. Although its liquidity is not on par with well-established cryptocurrencies like Bitcoin or Ethereum, it is improving rapidly and is better than that of newer coins. Overall, ICP has great potential to grow as the Internet Computer platform gains more widespread adoption and the token's utility expands.

ICP, Internet Computer Origins

The history of the Internet Computer platform and its native token, ICP, is an interesting one that has captured the attention of investors and blockchain enthusiasts alike. The genesis of the project can be traced back to 2016 when the DFINITY Foundation was established in Zug, Switzerland, with the goal of creating a decentralized blockchain that could host websites, internet services, and financial systems without the need for centralized servers or infrastructure.

The potential of this idea attracted major investments in 2018 from the likes of Andreessen Horowitz and Polychain Capital, totaling $173 million. This infusion of capital allowed DFINITY to make significant progress with the platform, which launched its mainnet in December 2020. After some testing and fine-tuning, the platform went fully live on May 7, 2021, and the ICP token hit an all-time high of $700 just a few days later.

While there haven't been any major developments or updates since the May launch, the DFINITY Foundation announced the creation of a $220 million developer fund in late May, with the aim of accelerating the platform's development. This move is expected to attract more developers to the platform and help it grow over the coming months and years. As the platform gains more widespread adoption and the ICP token's utility expands, it is likely that the history of ICP and the Internet Computer will continue to be written with many exciting developments to come.

Where is Internet Computer (ICP) good?

ICP, the native token of the Internet Computer platform, has a number of advantages that set it apart from other cryptocurrencies. One of the most significant is its use of chain key technology. Unlike proof-of-work and proof-of-stake mechanisms, which rely on complex calculations and a large number of public keys, chain key technology enables the platform to verify transactions using just one public key. This allows it to process transactions at a much faster rate than other cryptocurrencies, such as Ethereum and Bitcoin.

In addition to its technological advantages, the Internet Computer platform has ambitious goals. It aims to create a decentralized version of the Web, offering users a range of benefits, including greater privacy, security, and transparency. If it can achieve these goals, ICP could become an extremely valuable cryptocurrency, potentially rivaling the likes of Bitcoin and Ethereum.

Beyond its potential as a decentralized Web platform, ICP can also be used in decentralized finance (DeFi) applications. This provides a solid base within the existing crypto ecosystem and opens up a range of possibilities for future development. With the launch of the $220 million developer fund, the Internet Computer team is actively seeking to accelerate the platform's development and bring its ambitious goals closer to reality.

What are Internet Computer platform drawbacks?

The Internet Computer platform is not without its drawbacks, and one of the main issues is that it is still relatively untested. This means that its protocol could potentially contain significant bugs or vulnerabilities, which could take some time to iron out. As such, it may be a while before the platform reaches full maturity, and there could be a certain amount of risk involved in using it in its current state.

Another potential disadvantage of the Internet Computer platform is the fact that it is a relatively new and untested technology. While the idea of a decentralized internet is an attractive one, it remains to be seen whether there will be a critical mass of organizations and individuals who are willing to move away from the likes of Amazon Web Services and Google Cloud. While some people have expressed a desire to delete Facebook and switch to alternative search engines like DuckDuckGo, Facebook and Google still remain dominant in their respective areas. In a similar vein, there may be too few people who care enough to migrate away from established, centralized servers, even if there is an alternative that is relatively untested.

Furthermore, ICP tokens have a relatively low disbursement rating, with most of the initial supply going to developers and early investors in the Internet Computer platform. While this may improve over time as ICP becomes more widely traded, it may be a concern for those who are looking for more equitable distribution. Finally, while ICP has a medium liquidity rating and has penetrated the top ten of cryptocurrencies by market cap, its liquidity is not yet on par with long-established cryptocurrencies like Bitcoin and Ethereum. This could make it a less attractive investment option for those who value liquidity over other factors.

What are Internet Computer ICP Pros and Cons?

Pros:

• DFINITY Foundation has secured backing from prominent venture capital firms such as Andreessen Horowitz and Polychain Capital, indicating a strong level of confidence in the project.


• ICP has a clear use case within the Internet Computer platform, potentially making it a valuable asset in the future if the platform achieves significant adoption.


• The deflationary nature of the ICP token may increase its value over time as the Internet Computer platform grows in popularity.


• The growing public backlash against large tech corporations such as Amazon and Google may increase demand for decentralized alternatives like the Internet Computer platform.


• The platform offers instant and collateral-free flash loans, which could be a significant advantage for users.

Cons:

• The Internet Computer platform has yet to achieve significant adoption, meaning that its future success is still uncertain.


• The platform is relatively untested and may require several years of development work before it can be deployed at scale with confidence.


• The ICP token is still not widely available on some cryptocurrency exchanges, limiting its liquidity and potential market reach.