The Internet Computer blockchain represents a revolutionary reimagining of blockchain design, fueled by groundbreaking advances in cryptography. It introduces the first "World Computer" blockchain capable of supporting a wide range of online systems and services, including complex web-based social media, without relying on traditional IT infrastructure like cloud computing services. This allows for complete end-to-end decentralization.
What gives the ICP token its value?
The ICP token serves three primary purposes. First, it is converted into "cycles" that are burned to power computation, which means when ICP is transformed into cycles, it effectively disappears, exerting deflationary pressure. Second, ICP can be staked in the permissionless Network Nervous System DAO, which governs the Internet Computer blockchain, forming voting neurons that earn rewards. Lastly, ICP acts as a store of value, enabling users to invest in decentralization sales conducted by web3 services.
How does the Internet Computer operate?
The internet connects almost everyone and everything through a network of specialized devices known as routers. Some of these, like WiFi routers, are found in homes, while others that link countries are highly specialized and costly. The Internet Computer blockchain functions on a network of unique computing devices called "node machines," which adhere to various standards.
Most contemporary Proof-of-Stake blockchains are operated by "validator" nodes, which are essentially software instances often hosted on cloud services. The Internet Computer, however, operates on an autonomous network of dedicated node machines, installed in independent data centers by separate "node providers."
These node machines interconnect using the Internet Computer Protocol, or ICP, which is how the token gets its name. This blockchain network model is best described as "Proof-of-Useful-Work." The network is regulated by a governance system called the NNS, which has the capacity to remove ("eject") node machines that fail to generate enough blocks or maintain pace with the network, necessitating their construction to specific standards.
Internally, the Internet Computer network is made up of "subnet blockchains." Each new subnet increases the network's capacity, allowing it to support additional smart contracts, computation, and data. However, these subnets remain invisible to the hosted smart contracts and users because they are unified into a single logical blockchain via "chain key crypto."
Chain key crypto is exclusive to the Internet Computer. It allows subnet blockchains and the entire Internet Computer blockchain to possess public "chain keys." The blockchains cryptographically sign all their interactions, which can be verified using their chain keys. Valid signatures confirm that interactions remain untampered, and that the blockchains run correctly without needing to download and verify transaction blocks.
With chain key crypto, the Internet Computer can merge its subnet blockchains into a lone blockchain and scale infinitely. Chain key crypto also enables other functionalities! For instance, smart contracts on the Internet Computer can handle HTTP requests and deliver interactive web experiences directly to end-users. This is more secure than traditional web hosting because smart contracts can sign the content they deliver, allowing it to be validated before being displayed, ensuring user safety.
Recently, chain key crypto introduced "Chain Key TX" features for smart contract developers. This allows them to execute signed transactions on other blockchains. For example, a developer on the Internet Computer can generate bitcoin addresses and send and receive bitcoin directly on the Bitcoin ledger without risky "bridge" services. This functionality paves the way for native Bitcoin DeFi.
Additionally, the Internet Computer offers many unique blockchain features. These include HTTP outcalls, which let smart contracts securely request data from other systems over the web via its network consensus system. This enables smart contract software to securely obtain data like crypto asset price feeds without relying on a trusted oracle.
The Internet Computer network is managed by a master subnet running a sophisticated permissionless DAO known as the Network Nervous System (NNS). This system instructs node machines on how to organize the network. Nodes can verify the authenticity of instructions from the NNS by checking the chain key signature, as the chain key is unchanged.
The NNS directs nodes to join and leave subnets and form new ones. The cryptographic protocols are designed so that even as nodes join and leave subnet blockchains, their chain keys remain constant.
Developers on the Internet Computer use "canister" smart contracts. These are termed canisters since they contain WebAssembly bytecode and persistent memory pages. The bytecode executes the logic of the smart contract within its own memory, communicating with other smart contracts through message passing (using a software "actor" model). This enables parallel smart contract execution, another way the Internet Computer scales.
Canister smart contracts are highly capable and can be used for a wide range of applications, including multi-block transactions and daemon smart contracts, which are automatically triggered by the blockchain at intervals.
The primary programming languages for developing smart contracts on the Internet Computer are Rust and Motoko. Motoko is a language specifically made for the Internet Computer by DFINITY, developed under the guidance of Andreas Rossberg, one of the co-creators of the WebAssembly standard.
To gain a thorough understanding of how the Internet Computer functions and its distinctive features, visit internetcomputer.org and wiki.internetcomputer.org.
Who is responsible for creating the Internet Computer?
The Internet Computer blockchain was created by the DFINITY Foundation, which is based in Zürich, Switzerland, and operates R&D centers in Switzerland and California, along with remote teams worldwide. By mid-2022, DFINITY had nearly 300 employees, mostly focused on R&D, and included many renowned cryptographers, computer scientists, and engineers.
Founded in Switzerland in October 2016, the DFINITY Foundation was established to manage the development of the Internet Computer blockchain. The name DFINITY, short for "decentralized infinity," goes back to early 2015 and was initially used by the project's founder, Dominic Williams, when referring to his theoretical crypto work aimed at making a World Computer a reality.
In February 2017, the DFINITY Foundation held an early public ICO to secure funds for expansion, followed by private fundraising rounds in 2018. These rounds raised capital from over 100 hedge funds and VCs, including prominent names like Andreessen Horowitz, prior to the launch of a16z crypto.
Where can you purchase Internet Computer (ICP)?
Internet Computer can be acquired on several crypto exchanges, such as:
