Internet Computer (ICP) is the native token of Internet Computer, a blockchain-based platform aiming to build a decentralized version of the internet. Developed by the Zug-based DFINITY Foundation, Internet Computer is conceived as a distributed alternative to centralized cloud servers (such as Amazon Web Services). It lets individuals and organizations deploy websites, applications, social networks and other web-based services, with the network capable of processing transactions at speeds previously associated with more centralized technology and infrastructure.
As a platform, Internet Computer consists in a protocol run by independent nodes based throughout the world, with the protocol describing how these nodes can allocate computing bandwidth to applications. It’s in this context that the ICP token has its utility, being used to provide computing power, in a similar way to how ethereum (ETH) powers the Ethereum blockchain via gas fees. The token also has a governance function, letting holders and stakers vote on development proposals.
As a token, ICP has both inflationary and deflationary elements. Holders are rewarded with new ICP for participating in votes, yet ICP is also burned after being used to power transactions and computing processes. As such, ICP may become deflationary overall if the Internet Computer platform becomes widely adopted.
ICP Pros DFINITY Foundation has attracted backing from big venture capital funds, including Andreessen Horowitz and Polychain Capital.
ICP has a clear use case within the Internet Computer platform.
ICP token may be deflationary in the long-term, particularly if the Internet Computer platform gains significant adoption.
Growing public backlash against Big Tech corporations such as Amazon and Google, possibly increasing demand for something like Internet Computer.
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Advantages of ICP The core of the Internet Computer platform is its use of chain key technology. In contrast to proof-of-work and proof-of-stake consensus mechanisms, its use means that the entire Internet Computer platform needs only one public key to verify transactions, as opposed to thousands or millions. This allows it to operate at scale and speed, outstripping the likes of Ethereum and Bitcoin.
More generally, Internet Computer is an extremely ambitious platform, aiming to offer a decentralized version of the Web. If it can come anywhere close to realizing its ambitions, this would likely make ICP an exceedingly valuable cryptocurrency. At the same time, as a smart contract platform, it can also be used to run applications in decentralized finance (DeFi), giving it a solid base within the existing crypto ecosystem to branch further out.
The information contained herein is for informational purposes only. Nothing here shall be construed to be financial legal or tax advice. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Trading cryptocurrencies poses considerable risk of loss. The speaker does not guarantee any particular outcome.
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