Internet Computers are the latest buzz taking the cryptocurrency world by storm. When most cryptocurrencies were posting double-digit losses, the new blockchain project was exploding. Its market value skyrocketed to record highs of $90 billion.
After debuting at about $731 a coin, the coin imploded to lows of $146 within minutes. However, it did bounce back, finding some stability above the $100 mark. While still down by more than 70% from the all-time highs, it still commands a hefty valuation of more than $17 billion despite being new on the block.
The massive valuation stems from the altcoin being positioned as an alternative to Bitcoin and Ethereum. The coin appears to have taken over from Dogecoin, which was the coin sending shockwaves in the burgeoning sector which has seen an influx in institutional investments in recent months.
What you should know
Internet Computers are causing ripples in the crypto world, given that it is a blockchain project running on a proprietary protocol dubbed the Internet Computer Protocol. Its blockchain uses smart contracts, therefore, making it suitable for powering various applications and platforms.
Its primary goal is to provide a framework whereby anyone can build software or publish anything on the World Wide Web without leveraging the services or networks of the big tech companies. The idea is to open up and decentralize everything on the internet to reduce reliance on Amazon, Google, and Facebook, which enjoy a monopoly on online content.
Developed by Dfinity Foundation, a non-profit based in Switzerland, Internet Computer comes with a hack-proof platform designed to reduce costs while being interoperable. The developers aim to make the internet more fun by opening up the internet and removing all the restrictions put in place by the tech giants.
Dfinity, the company behind the innovative blockchain project for free internet, boasts 188 employees in the U.S, U.K, Japan, Germany, the U.S, and Zurich, Switzerland. The startup has set out to reinvent the internet by opening it up and letting more people build on it without any restrictions.
Additionally, Dfinity seeks to transform the World Wide Web into a giant global computer that relies on Smart Contracts. Once developed, it should take on the $370 billion cloud computing market that is the preserve of tech giants.
ICP is the native token that powers the Internet Computer blockchain. Its role on the blockchain revolves around staking and allowing people to participate in the blockchain and security deposits that enable private entities to connect to the public network.
The hype behind Internet Computer stems from the caliber of people that already back the interesting project. Backed by a big team as well as big investors, it all but underscores the project prospects and credibility in the highly competitive yet burgeoning crypto space.
The project has already raised more than $120 million over a short period from investors led by the likes of Andreessen Horowitz and Polychain Capital. In addition to high-profile investments, Internet Computer gaining a listing on big cryptocurrency exchanges just a few days after its launch was another validation.
Additionally, the team behind the project has confirmed a $200 million fund that it hopes will attract more developers. Dfinity uses the funding program to encourage more developers to build on top of the Internet Computer Protocol.
The foundation is hoping that the $200 million funding program will be the incentive to get more developers into building websites and another internet service on top of the Internet Computer blockchain.
Internet computer edge
Internet Computers and its protocol stand out for running much faster and costing much less. According to the Dfinity Foundation, it has what it takes to operate like the normal internet, given the speed and capabilities on offer.
While most blockchain projects run largely on cloud platforms offered by tech companies, Internet Computers runs entirely on dedicated hardware installed by independent parties globally. Therefore, the project cannot be interfered with or controlled by a single power.
The dedicated hardware on which its protocols run ensures Internet Computer can run at web speed and increase its capacity as demand dictates.
With the traditional internet, developers rely on already developed programs to operate. However, with Internet Computers, that is not the case as users can create their own applications and websites on the blockchain, which is not run or controlled by any party.
Dfinity has already confirmed plans to develop a blockchain infrastructure that supports a wide array of software applications. The proprietary protocol has what it takes to host online services, including social media, messaging and search, and storage.
Likewise, Dfinity intends to expand its network of data centers to add to the current seven subnets with 68 nodes. By the end of the year, it should have at least 123 data centers capable of handling 4,300 nodes.
Internet computer outlook
The future looks increasingly bright for Internet Computers. At a time of increased privacy concerns, people are likely to jump onto projects and platforms to ensure data security and privacy.
Likewise, the project’s ability to guarantee decentralization when it comes to operations carried out online should be a hit for most people and investors.
Internet Computer hit the headlines when it debuted with a market capitalization of more than $80 billion. While it has shed a significant amount over a short period, the same was highly expected given what has come to be expected in the cryptocurrency space.
The price volatility could continue for some time before it settles, and people and investors digest what is at stake and the project’s long-term prospects. In addition, Internet Computer faces stiff competition from other projects, including Ethereum, which is best known for smart contracts.