What is ICP Crypto (Internet Computer Protocol)?

The Internet Computer Protocol (ICP) is a blockchain network designed to revolutionize computation and data storage by enhancing efficiency, speed, and decentralization. It seeks to tackle the limitations of the conventional Internet, including service monopolization, inadequate system security, and the misuse of personal data.

The native utility token of the Internet Computer network is $ICP, it serves multiple purposes within the ecosystem. $ICP facilitates network governance, is used for nodes for computational tasks, and rewards participants for their active engagement.

You can buy ICP on Bitrue

ICP Cryto: The World Computer

The Internet Computer (ICP) was created by the DFINITY project, founded by Dominic Williams in 2015. The DFINITY Foundation, established in Switzerland in October 2016, scaled up R&D following an initial incubation period. It first garnered funds through a public ICO in February 2017, with subsequent funding rounds in 2018 raising over $150 million from prominent investors. The foundation operates research centres in Zürich and California, alongside various remote teams.

The Internet Computer Protocol connects a network of dedicated devices to create a "world computer," enabling the decentralization of Web3 services.

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Web3 platforms use the Internet Computer blockchain to address privacy issues seen on traditional social networks, where users often face privacy concerns and excessive ads. Decentralized social networks built on this blockchain offer secure login options using biometrics and enable fast file sharing and instant cryptocurrency transfers via chat messages. Additionally, users can become part owners and contributors through governance tokens distributed by management DAOs for tasks like content moderation.

The Internet Computer blockchain enables full decentralization by allowing developers to build online services without relying on centralized IT infrastructure like cloud services and web servers. Services on this blockchain run independently, without the need for traditional IT support.

Developers create services using smart contracts called "canisters," which interact with the web and other blockchains seamlessly. These canisters are highly scalable and efficient, providing decentralized data storage and processing comparable to traditional IT systems.

Users interact with Internet Computer services through sessions created using personal device security features like Face ID and fingerprint sensors. Community DAOs control services directly from the blockchain, allowing for autonomous operation and decentralized governance.

End-users can earn governance tokens by contributing to services, such as content moderation or user referrals, making them stakeholders in the platform's success.

The Internet Computer, powered by the Internet Computer Protocol and its key token ICP, hosts modern social networks and other Web3 services independently and securely.

ICP Mechanism 

The Internet Computer Protocol (ICP) operates through a global network of standardized node machines, akin to the Internet's infrastructure, but for creating a decentralized "World Computer" on the blockchain. Utilizing chain key cryptography, ICP simplifies authentication with a single public key, enabling efficient verification of blockchain artefacts.

ICP features subnet blockchains for scalability, integrating seamlessly to form a unified blockchain without requiring inter-state copies for validation. This infrastructure is overseen by the Network Nervous System (NNS) DAO, which coordinates the network's structure and validates subnet operations with constant chain keys, ensuring secure and flexible network management.

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Canister smart contracts, running on WebAssembly, offer versatile and parallel computing capabilities on subnets. This system supports advanced features like multi-block transactions and periodic daemon contracts. Furthermore, ICP's chain key cryptography now facilitates blockchain interoperability, enabling smart contracts to manage accounts and perform transactions across various blockchains, thereby broadening the scope for decentralized finance (DeFi) and web experiences.

ICP Token Utilities

The ICP token serves three key functions: 

First, it acts as a fuel for smart contracts on the platform, providing cycles for computational tasks. These cycles, once used, are burned, effectively removing ICP from circulation and introducing a deflationary aspect to the token.

Second, ICP tokens can be staked within the Network Nervous System DAO, the governance body of the Internet Computer blockchain, to generate voting neurons. These neurons reward users for participating in the platform's governance, incentivizing active involvement.

Lastly, ICP functions as a store of value, enabling users to partake in decentralization efforts through Web3 service sales, solidifying its role within the ecosystem as a foundational asset for investment and operational activities.