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About Internet Computer
Key Points
- The Internet Computer blockchain enables full decentralization of online systems and services.
- ICP token has three main utilities: providing cycles for computation, staking for voting rewards, and store of value.
- The Internet Computer network runs on a sovereign network of dedicated node machines.
- Chain key crypto enables subnet blockchains to combine into a single logical blockchain.
- Smart contracts can process HTTP requests and serve interactive web experiences directly to end-users.
Case Studies and Examples
- Web3 enabler: building decentralized online systems and services entirely on the blockchain.
Unlocking the Power of the Internet: The Internet Computer Revolution
Unveiling the Internet Computer and ICP: A Revolutionary Convergence
The Internet Computer blockchain embodies a groundbreaking reimagining of blockchain architecture, fueled by pioneering advancements in cryptography. This visionary “World Computer” blockchain empowers the creation of virtually any online system or service, including complex web-based social media platforms, without reliance on traditional IT infrastructure, such as cloud computing services. Consequently, it can facilitate seamless, end-to-end decentralization.
What Confers Value to the ICP Token?
The ICP token boasts three primary utilities. Firstly, it serves as a source of “cycles” that are consumed to fuel computation, thereby creating deflationary pressure as ICP is converted into cycles and subsequently disappears. Secondly, ICP can be staked in the permissionless Network Nervous System DAO, which governs the Internet Computer blockchain, thereby generating voting neurons that yield voting rewards. Lastly, ICP assumes the role of a store of value, enabling users to invest in decentralization sales facilitated by web3 services, among other applications.
Unveiling the Inner Mechanics of the Internet Computer
The internet, which now interconnects nearly every individual and entity, relies on a vast network of specialized devices known as routers. While some, such as WiFi routers, are installed in homes, others, which facilitate international connections, are highly specialized and expensive. Similarly, the Internet Computer blockchain operates on a network of custom-built computing devices, referred to as “node machines,” which are constructed to meet diverse standards.
Presently, the majority of Proof-of-Stake blockchains rely on “validator” nodes, which are essentially software instances typically deployed on cloud computing services. In stark contrast, the Internet Computer operates on a self-governing network of dedicated node machines, strategically installed in independent data centers by autonomous “node providers.”
These node machines interconnect via Internet Computer Protocol, or ICP, which lends its name to the token. The Internet Computer’s blockchain network model is aptly described as “Proof-of-Useful-Work”. The network features a governance system, known as the NNS, which can penalize (or “eject”) node machines that fail to generate a sufficient number of blocks and maintain pace with the network, thereby necessitating adherence to a standardized specification.
Internally, the Internet Computer network is comprised of “subnet blockchains,” which collectively form a robust infrastructure. Each new subnet incrementally enhances the network’s capacity, thereby facilitating the hosting of additional smart contracts, computations, and data storage. Notably, these subnets remain imperceptible to the hosted smart contracts and users, as they are seamlessly integrated into a single, unified logical blockchain via the innovative “chain key crypto” technology.
The Internet Computer’s distinctive Chain Key Crypto innovation enables subnet blockchains, as well as the overarching Internet Computer blockchain, to possess public “chain keys.” These blockchains cryptographically sign all their interactions, which can be authenticated using their respective chain keys. The presence of valid signatures serves as unequivocal proof that interactions remain untampered with, and that the blockchains are functioning correctly, thereby eliminating the need to download and verify their transaction blocks.
Thanks to the innovative chain key crypto, the Internet Computer is empowered to consolidate its subnet blockchains into a single, unified blockchain, thereby eliminating scalability constraints. Moreover, this cutting-edge technology also unlocks a plethora of possibilities. For instance, smart contracts on the Internet Computer can seamlessly process HTTP requests and deliver immersive, interactive web experiences directly to end-users. Notably, this approach is more secure than traditional web serving, as the smart contracts can digitally sign the content they serve, enabling validation before it is presented to users, thereby ensuring their safety.
Notably, the innovative chain key crypto has been leveraged to introduce the “Chain Key TX” functionality, thereby empowering smart contract developers to craft signed transactions that seamlessly interact with other blockchain ecosystems. For instance, developers on the Internet Computer can now generate bitcoin addresses and facilitate the sending and receiving of bitcoin directly on the Bitcoin ledger, all while bypassing the need for insecure “bridge” services. This breakthrough functionality paves the way for the creation of native Bitcoin DeFi applications.
The Internet Computer also boasts a plethora of distinctive features within the blockchain realm. Notably, it offers HTTP outcalls, which empower smart contracts to securely interact with external systems over the web, leveraging its network consensus system. This facilitates the secure retrieval of data, such as crypto asset price feeds, without relying on a trusted oracle service, thereby ensuring the integrity of smart contract software.
The Internet Computer network is orchestrated and governed by a master subnet,
which operates an advanced, permissionless decentralized autonomous organization (DAO)
known as the Network Nervous System (NNS). This entity issues directives to node machines,
dictating the network’s structural organization. Notably, nodes can authenticate the
instructions received from the NNS by verifying the chain key signature, which remains
immutable.
The NNS orchestrates the dynamic formation and dissolution of subnets, directing nodes to join, leave, and even create new subnets as needed. Notably, the cryptographic protocols and clever design ensure that, despite the fluidity of nodes entering and exiting subnet blockchains, their chain keys remain consistently unchanged.
On the Internet Computer, developers craft innovative applications using “canister” smart contracts, which are essentially bundles of WebAssembly bytecode and persistent memory pages. The bytecode executes the logic of the smart contract, operating exclusively within its own memory domain, and interacts with other smart contracts via message passing, leveraging a software “actor” model. This paradigm enables the parallel execution of smart contracts, thereby facilitating the scalability of the Internet Computer.
Canister smart contracts possess unparalleled versatility, empowering developers to craft a vast array of innovative applications. Notably, they enable the creation of multi-block transactions (computations) and daemon smart contracts, which are automatically triggered at predetermined intervals by the blockchain.
The primary programming languages employed for crafting Internet Computer smart contracts are Rust and Motoko. Notably, Motoko is a bespoke language, specifically designed by DFINITY for the Internet Computer, and was developed by a team led by Andreas Rossberg, the esteemed co-inventor of the WebAssembly standard.
To gain a comprehensive understanding of the Internet Computer’s inner workings and its distinctive features, we recommend exploring internetcomputer.org and wiki.internetcomputer.org.
The Visionary Minds Behind the Internet Computer
The Internet Computer blockchain was conceived and developed by the DFINITY Foundation, a pioneering organization headquartered in Zürich, Switzerland, with research and development centers in Switzerland and California, as well as a global network of remote teams. As of mid-2022, DFINITY boasted a workforce of nearly 300 individuals, predominantly comprising R&D specialists. The team’s esteemed roster features numerous renowned cryptographers, computer science researchers, and engineers.
The DFINITY Foundation was established in Switzerland in October 2016, with the primary objective of overseeing the development of the Internet Computer blockchain. The moniker “DFINITY” is an abbreviation of “decentralized infinity,” a term coined as early as 2015. Initially, it was employed by the project’s founder, Dominic Williams, to describe his theoretical cryptographic endeavors, which he envisioned would pave the way for a World Computer.
In February 2017, the DFINITY Foundation embarked on an early public initial coin offering (ICO) to secure funding for scaling purposes. This was subsequently augmented by private fundraising rounds in 2018, which garnered support from over 100 esteemed hedge funds and venture capital firms, including prominent names such as Andreessen Horowitz, prior to the emergence of a16z crypto.
Acquiring Internet Computer (ICP): A Comprehensive Guide
The Internet Computer is accessible through a diverse range of prominent cryptocurrency exchanges, including:
- Prominent exchanges, including Binance, Coinbase, Huobi Global, and OKX,
Prominent Projects Thriving in the Internet Computer Ecosystem
A Pioneering Web3 Enabler
Envision a world where social networks seamlessly facilitate group chats to plan your next getaway with friends, enable engaging social gaming experiences, and allow you to interact with captivating photos and videos shared by your crush. However, these platforms also raise significant concerns about user privacy, as they often share sensitive information with corporations and inundate users with advertisements. Upon signing up, you are presented with lengthy terms and conditions, but you have little control over how your data is utilized or the features that these services provide.
Web3 has the potential to revolutionize the traditional paradigm. A genuine World Computer can be leveraged to create anything in a completely decentralized manner, including demanding services like social networks. Unlike before, when blockchains were limited to building web3 services in conjunction with traditional IT infrastructure, such as cloud computing services, a World Computer blockchain enables the creation of services that operate entirely on blockchain. This, in turn, facilitates the transfer of control over these services to community DAOs (decentralized autonomous organizations), which function as digital democracies in cyberspace, mediating the economic interests and preferences of their online communities regarding updates and configurations.
In this novel paradigm, users are dual-hatted as both proprietors of web3 services and integral members of the operational team – exemplified by referring fellow users to catalyze viral growth or contributing to pivotal tasks such as content moderation. Since web3 services, powered by blockchain technology and governed by a decentralized autonomous organization (DAO), are inherently decentralized, they can also leverage tokenization, akin to a blockchain. For instance, a web3 service might airdrop the DAO’s governance tokens to users who lend a hand or enable users to transmit satoshis via a chat message.
Today, innovative services are being developed on the Internet Computer blockchain, which has enabled the World Computer’s capabilities and functionalities. The ultimate goal is to revolutionize the entire internet ecosystem.
The Omnipotent World Computer: Unlocking Boundless Functionality
The Internet Computer blockchain is designed to imbue the public internet with the functionality of a World Computer. By leveraging this innovative platform, developers can create decentralized online systems and services that exist entirely on the blockchain, thereby eliminating the need for traditional, centralized IT infrastructure.
Because the Internet Computer is a blockchain, developers can create online systems and services leveraging “smart contract” software. By harnessing smart contracts in this application, game-changing benefits can be achieved. For instance, since smart contracts are tamper-evident, much like the Bitcoin ledger, systems and services no longer require protection by firewalls to ward off hackers – thereby addressing the growing menace of cyber attacks plaguing businesses and society. Another significant advantage is that web3 services built on the Internet Computer can seamlessly process tokens and establish novel economic frameworks. For example, web3 can converge social media and decentralized finance (DeFi) to spawn SocialFi, such as a fully tokenized social network.
The Internet Computer offers “canister” smart contract functionality, empowering a new era of innovation. These canisters can accomplish a multitude of novel tasks, including serving interactive web experiences directly to users by processing HTTP requests, creating transactions that seamlessly interact with other blockchains via “Chain Key TX”, scaling without limitations, and operating with an efficiency comparable to traditional IT, thereby significantly reducing the detrimental CO2 emissions generated by blockchain technology, and ultimately, the tech ecosystem as a whole.
Web3 developers can craft innovative DeFi, SocialFi, GameFi, and metaverse applications. By leveraging Chain Key TX, they can seamlessly process tokens across disparate blockchains, eliminating the need for bridges. Furthermore, they can create fully decentralized systems, such as DeFi on Ethereum, by harnessing the Internet Computer to deliver immersive, interactive web experiences, thereby supplanting traditional, centralized IT infrastructure, including cloud computing services.
On the Internet Computer, canister smart contracts boast a distinctive feature: they can autonomously cover their own computational costs through a novel “reverse gas” paradigm. This innovation empowers web3 users to establish seamless sessions with services, which can then process a multitude of blockchain transactions, such as exchanging chat messages in a conversation, all without necessitating further user intervention.
The Internet Computer pioneers a novel blockchain authentication system, dubbed Internet Identity, which empowers users to harness their devices as cryptographic keys. By leveraging the fingerprint sensor on their laptop or Face ID on their phone, as well as traditional devices like a Ledger wallet, users can seamlessly sign in to online services.
By virtue of being built entirely on the blockchain, web3 services can be placed under the autonomous governance of community-driven DAOs (decentralized autonomous organizations), which oversee all configurations and updates. This paradigm shift enables users to assume ownership of online services and become integral members of the teams that operate them.
The Internet Computer network is governed by a sophisticated decentralized autonomous organization (DAO) seamlessly integrated into its protocols, known as the Network Nervous System (NNS). This innovative framework perpetually updates the replica (or “client”) software that operates on dedicated node machines, which host the blockchain, at an astonishing rate of nearly weekly intervals, thereby fueling the rapid metamorphosis of the network.
Decentralized Finance (DeFi): The Future of Financial Freedom
- In a groundbreaking paradigm shift, next-generation decentralized exchanges, such as Sonic, InfinitySwap, and ICPSwap, are harnessing the Internet Computer’s innovative reverse-gas model and 1-second transaction finality to provide users with a seamless experience, characterized by zero gas fees and lightning-fast speeds for swaps, transactions, and more.
Non-Fungible Tokens (NFTs): A New Era of Digital Ownership
- The visionary artist behind the esteemed Bored Ape Yacht Club collection has unveiled a novel series of NFTs on the Internet Computer, premiering at Art Basel. “This new series, hosted on the Internet Computer, enables larger file sizes, exemplifying how artists are increasingly exploring NFT platforms beyond Ethereum.”
- ORIGYN, a pioneering NFT marketplace built upon the Internet Computer, has witnessed its valuation skyrocket to a staggering $300 million, following a significant investment round led by none other than Paris Hilton and Wall Street luminary Bill Ackman.
Immersive Gaming Experiences
- In Cubetopia, the creative freedom of Minecraft converges with the vast, immersive realms of World of Warcraft. Design and share your own bespoke island with the global community via a unique, easily shareable URL.
- MetaSports Basketball is an immersive, open metaverse where users can leverage their prized Ethereum and Internet Computer-based NFTs to compete in high-stakes basketball tournaments, building and managing their own teams to achieve superstardom.
Social Dynamics
- OpenChat, a decentralized messaging service, has garnered a significant following, with a user base of 100,000 and nearly 1 million messages exchanged.
- Distrikt, a decentralized alternative to Facebook, has achieved a notable milestone, boasting over 70,000 user accounts and 100,000 posts, all while keeping gas costs remarkably low at under $100.
- Dmail revolutionizes traditional email by providing a Web3-based solution, enabling users to send and receive encrypted messages backed by blockchain technology.
- DSocial, a decentralized iteration of YouTube, empowers content creators to receive fair token-based rewards for their work, fostering a more equitable engagement model.
- DSCVR, a Web3-inspired platform akin to Reddit, secured a substantial $9 million in seed funding in July 2022, led by Polychain Capital. This investment has propelled the platform to impressive heights, with over 100,000 users and a staggering 1 million posts and comments.
The Metaverse: A Boundless Realm of Endless Possibilities
- PokedStudios pioneered the metaverse landscape with the launch of the Bots NFT collection on the Internet Computer, with the rarest Bot fetching a staggering sale of 3,000 ICP (~$172,140).
- IC Gallery is a revolutionary, interoperable 3D metaverse that seamlessly converges GameFi and DeFi, empowering users to engage in immersive 3D experiences, mint, and trade their existing NFTs.
- Slated for a 2023 launch, the Shiku Metaverse will comprise 100 distinct planets, boasting full integration with the Yumi NFT Marketplace.