What is ICP? [For beginners] Explaining the next generation Internet

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What is the Internet Computer (ICP)? A complete guide for beginners! Experience the future of the web

Hello! I'm John, a veteran blog writer. Today, I would like to explain in detail about the cryptocurrency "Internet Computer (ICP)," which has become more common recently, in an easy-to-understand way even for beginners. If you think it sounds difficult, don't worry! After reading this article, you should be able to clearly understand what ICP is and what kind of future it is aiming for.

The modern Internet is heavily dependent on servers (computers that store and process information) provided by major IT companies. When we visit a website or use an app, we are almost always passing through a company's data center, even if we are not aware of it. But is this really ideal? Data is concentrated in certain companies, there is a risk of censorship, services are suddenly stopped...The Internet Computer (ICP), which we will introduce today, was created to solve such problems.

Basic Information: A simple overview of ICP

In a nutshell, the Internet Computer (ICP) is"Let's turn the whole Internet into one giant computer!"It is an ambitious project. It is being developed by a Swiss non-profit organization called the DFINITY Foundation, and was officially launched in May 2021.

The main problem that ICP is trying to solve is the centralization of the current Internet (a state in which power and data are concentrated in certain organizations or companies). For example, giant companies such as Google, Amazon, and Facebook provide services that are essential to our lives, but on the other hand, there are also risks that their services will become unavailable if their servers go down, and that too much personal information will be collected in one place.

ICP does not rely on such traditional IT infrastructure (the foundation of information technology),Websites, applications, enterprise systems, and even Web3 services such as DeFi (decentralized finance, financial services without the involvement of central authorities such as banks) and NFTs (non-fungible tokens, digital data that cannot be forged) will run directly on the blockchain (a technology that links and manages transaction records like a chain).The aim is to decentralize the Internet itself (a state in which authority and functions are not concentrated in a specific place, but are distributed to many places).

Unique Features of ICP

ICP has several distinguishing features not found in many other cryptocurrency projects:

On-Chain Web Hosting: The biggest feature is that everything from the front end (the screen that users see) to the back end (the processing behind the scenes) of a website or application can be run directly on the blockchain, which could potentially eliminate the need for traditional cloud services (such as Amazon Web Services or Google Cloud).
The evolution of smart contracts: "Canister" ICP uses an advanced smart contract called "Canister" that handles program code and data together, operates at web speeds, and delivers web content directly to users.
Chain Key Technology: This is the core technology that enables ICP's high-speed processing and scalability. Transactions are finalized in seconds, and other cryptocurrencies can be directly handled without a bridge from another blockchain.
Network Nervous System (NNS): It is a governance system (governance mechanism) based on a decentralized and autonomous algorithm (calculation procedure) that operates and manages the ICP network. ICP token holders can vote on proposals such as network upgrades and changes to the economic model through NNS.
Inverse gas model: In a normal blockchain, users pay gas fees (fees) for each transaction, but in ICP, developers pre-charge resources in the form of "cycles" into the canister. This allows users to use the service without worrying about gas fees, enabling a seamless experience like Web2 (the current Internet).

Due to these characteristics, ICP has been dubbed the "world computer" and is said to have the potential to fundamentally change the nature of the Internet.

ICP Token Supply: How Does It Affect the Price?

When talking about crypto assets, the supply of their tokens (proprietary coins used within a project) is a very important point, and ICPs are no exception.

ICP TokenThere is no set total issuance limit.This is different from cryptocurrencies like Bitcoin, which have a set limit, but the issuance and burning mechanism can be adjusted by votes of ICP token holders through the Network Nervous System (NNS).

As of September 2024Distribution supply volumeThe total amount of ICP is approximately 4 million (as can be confirmed on information sites such as CoinMarketCap). The amount of tokens in circulation is the circulating supply.

Why is supply important to price?

Rarity: If demand is constant and supply is low, prices will generally tend to rise, but conversely, if there is too much supply, value may be diluted.
Inflation/Deflation: A large amount of new issuance can create inflationary (value-decreasing) pressure, while a large amount of burning can create deflationary (value-increasing) pressure. In the case of ICP, it is expected that this balance will be adjusted through governance by NNS.

ICP tokens are used to operate the network (participate in the NNS), for computing resources (purchase "cycles" necessary to operate canisters), and for trading on exchanges. As the project grows and more applications run on the ICP network, the demand for ICP tokens is likely to increase.

Technical details: how does the ICP work?

Many people may have heard of the term "blockchain," but don't really understand it. Simply put, blockchain is"A digital ledger that cannot be tampered with and that everyone monitors"It's like this. Transaction records (blocks) are linked in chronological order like a chain, and that data is distributed and stored on computers around the world. So even if one person tries to tamper with the data, many other computers will tell them, "That's not right!", so a very high level of security and transparency (information is public and anyone can check it) is maintained.

ICP is also based on blockchain technology, but also incorporates its own innovative technologies.

Subnet Blockchain: ICP consists of many independent "subnet blockchains", each acting as an independent blockchain and hosting a specific canister (application), making the whole network scalable and flexible in increasing processing power.
Node machine: These subnets run on dedicated hardware called "node machines" in independent data centers distributed around the world, enabling a truly decentralized infrastructure that is not tied to any particular company.
Chain Key Technology: Again, this is truly groundbreaking technology: transaction confirmations are extremely fast (on the order of 1-2 seconds), smart contract invocations complete at web speeds, and a single public key (one of the key pair used for encryption and signing) can be used to verify the validity of the entire ICP, making it extremely efficient and secure.
Canisters: ICP's smart contracts are called "canisters," which are bundles of program code and memory pages (where data is stored) that the code uses. They are much more powerful than traditional smart contracts, and can perform any function, from delivering website content to complex back-end processing. What's more, users can interact with canisters directly, making them feel just like a traditional website.
Internet Identity: It is a more secure authentication system that does not require passwords. By using biometric authentication devices such as fingerprint or face recognition (security keys for smartphones or PCs), you can log in safely while maintaining your anonymity.

Combined, these technologies enable ICP to overcome many of the challenges of the traditional Internet, providing a platform on which developers can build truly decentralized applications and on which users can enjoy a safer and more free web experience.

Team and community: trustworthy and vibrant?

The power of the team and community that supports any project is very important. The ICP project is led byDFINITY FoundationIt is a Swiss non-profit organization founded by Dominique Williams in 2016, and has many world-class researchers and engineers in the fields of cryptography, distributed systems, programming languages, etc. It launched ICP after many years of research and development, and is well-known for its technical capabilities and vision.

The community is also very active. There is a wealth of documentation and tools for developers (including tutorials such as the "ICP Developer Liftoff"), and many developers around the world are working on developing applications on ICP. Technical discussions and the sharing of new ideas are actively taking place on the official forums and social media. The user community is also growing, and more people are enjoying new services and games created on ICP.

There have also been some unique initiatives, such as the emergence of Erica Nister, the first AI influencer in the ICP ecosystem, which is helping to increase community engagement.

Use cases and future prospects: What can ICP do? What's next?

ICP technology is highly versatile, so there are a wide variety of possible use cases.

Decentralized websites and apps (dApps): Build censorship-resistant websites, social media and blogging platforms that don't rely on traditional servers.
DeFi (Decentralized Finance): Because it enables high-speed, low-cost transactions, it is suitable for new forms of financial services (lending, DEX (decentralized exchange), etc.).
GameFi: By managing game logic and assets (items, etc.) completely on-chain (on the blockchain), we can create highly transparent games where players have true ownership.
SocialFi: We hope to see the creation of new social media platforms that allow creators to own their content and monetize it directly.
Enterprise Systems: By building corporate business systems and databases on ICP, security and efficiency can be improved.
Metaverse and NFTs: It is also promising as infrastructure for the expanding metaverse (virtual space) and as a platform for issuing and managing NFTs (non-fungible tokens).
AI (Artificial Intelligence): Efforts are also underway to run AI models on-chain to increase transparency and verifiability, which is expected to prevent the AI decision-making process from becoming a black box and build more reliable AI systems.

Looking to the future, ICP has the ambitious goal of "reinventing the Internet." If ICP's vision comes to fruition, our online experiences will be more open, secure, and user sovereign. While other smart contract platforms such as Ethereum are sometimes referred to as "world computers," ICP takes that concept a step further by being able to host entire web services.

Comparison with competitors: What are ICP's strengths?

There are other projects like ICP that aim to be the "next generation internet" and "decentralized application platform." Representative examples include Ethereum (ETH), Solana (SOL), Polkadot (DOT), and Cardano (ADA).

The main advantages of the ICP compared to these projects are:

End-to-end decentralization: The ability to run entire applications on-chain, from the front-end to the back-end to data storage, is currently the most advanced in ICPs, whereas in many projects the front-end may still rely on traditional cloud servers.
Processing at web speed: ChainKey technology enables extremely fast transaction finality, allowing users to use the service without being aware of the blockchain.
Scalability: The subnet architecture allows you to flexibly expand your network capacity based on demand.
Inverse gas model: Since users do not need to pay gas fees, the barrier to mass adoption is low.
Direct integration with other blockchains: A major advantage of ChainKey technology is the ability to directly connect with other blockchains, such as Bitcoin and Ethereum, without going through a centralized bridge (currently under development, partially realized).

Of course, Ethereum has the largest developer community and ecosystem, and Solana boasts extremely high transaction processing power, so each project has its own strengths. ICP is trying to build its own position, especially in terms of "a truly decentralized web experience" and "an enterprise-level application execution environment."

Risks and Cautions: What you need to know

With any innovative technology, there are risks and considerations to be aware of, and ICP is no exception.

Price fluctuation (volatility): This is a risk common to all cryptocurrencies, but the price of ICP tokens may also fluctuate significantly depending on market conditions, news, etc. As it is a particularly new technology, expectations and concerns tend to be mixed.
Project complexity and adoption hurdles: ICP's technology is highly advanced and ambitious, requiring developers to learn new concepts and tools, and it may take time for widespread adoption to occur.
Increasing competition: As mentioned above, many projects are competing for dominance in the next generation of the Internet, and it remains to be seen whether ICP will be able to establish a strong position among them.
Sustainability of the Token Economy: Whether the ICP token issuance model and incentive design can maintain the long-term health of the network and continue to provide appropriate rewards to participants will depend on future operations.
Regulatory uncertainty: Legal regulations regarding crypto assets as a whole are still in the process of being established in each country. It is necessary to consider the possibility that the development of projects may be affected by what regulations are introduced in the future.
Beware of scams: Unfortunately, there are fraudulent projects and phishing scams in the world of cryptocurrencies. It is important to always act with caution and not blindly trust any information other than that from official websites.

It is important to understand these risks, gather information calmly, and make decisions.

Expert opinion and analysis: What does the market think?

Looking at Apify's search results and various market analyses, experts have mixed opinions on ICP.
99Bitcoins.com (Position 1) describes ICP as an “internet-scale blockchain” and highlights its speed and ChainKey technology. CCN.com (Position 8) also describes ICP as an alternative to centralized cloud infrastructure.

Opinions are divided when it comes to price predictions.
For example, Godex.io (Position 7) suggests that conservative estimates for ICP price in 2025 suggest it will trade between $19.56 and $35.64, with an average of around $27.80.
On the other hand, Blockdag.network (Position 9) predicts that the price range for ICP coin in 2025 will be between $3 and $21, and it is unlikely to exceed this range.
Coinpedia.org (Position 13) predicts that it could reach up to $2025 in 18.43. Binance's price prediction page (Position 16) also predicts a price of $2025 in 5.62 based on user input.

More pessimistic opinions have been found in places like the ICPTrader Reddit community (Position 3), with some saying they would be happy if it hits $10, but are not expecting much.
These price predictions are just one perspective and will fluctuate depending on many factors, so it is wise to use them as a guide only.

What is important is that many analyses have praised ICP for its technological innovation and ambitious vision to solve the problems of the existing Internet, but there is also a common view that, because of its grandiose nature, it will take time and effort to be put into practical use and widespread use.

Latest News and Roadmap Highlights

The ICP project is under continuous development with various updates and announcements being made.

AI Integration: Movements such as "Erica Nister - The First AI Influencer on ICP" (Position 6) and "Adam Computer Protocol - AI Memecoin" (Position 10) show that ICP is trying to incorporate AI technology into the ecosystem. The realization of decentralized AI is likely to be one of the major themes of ICP.
Developer Support: With a "Welcome to the ICP Developer Liftoff" (Position 2), "Quick start" guides (Position 5), and "Hello, world!" tutorials (Position 4), we are making a concerted effort to make it easier for developers to learn and get started with the ICP, which is essential for the ecosystem to grow.
Increased data transparency: Initiatives like "Internet Computer Dashboard: Making ICP Data More Accessible" (Position 11) are important in making the state of the ICP network more transparent and increasing community trust.
Growing the Ecosystem: New dApps and services continue to be launched on ICP, and use cases are increasing in various fields such as DeFi, GameFi, and SocialFi.
Roadmap: The DFINITY Foundation regularly updates its roadmap and publishes future development plans (e.g., further scalability improvements, enhanced direct integration with other blockchains, improved privacy features, etc.) By checking these, you can get a sense of the direction of the project.

Recently, there has been progress in the development of direct integration with Bitcoin (ckBTC) and Ethereum (ckETH), which will hopefully allow the ICP to act as a hub between different blockchains.

Summary: Will ICP Change the Future of the Internet?

So far, we have looked in detail at the Internet Computer (ICP), but what do you think?

ICP isA highly ambitious project that aims to solve the current Internet's problems of centralization and create a more open, secure, and user-sovereign web.The approach of running websites and applications entirely on the blockchain is revolutionary, and the concept of a "world computer" has the potential to fundamentally change the very nature of the Internet.

Our unique "Chain Key Technology," "Canister," "NNS," and other innovative technologies, as well as an active development community, are helping us realize our vision. Of course, there are many challenges to overcome, including the risk of price fluctuations, technical hurdles, and intensifying competition.

Whether ICP will truly become the standard for the "next generation Internet" will depend on future development and adoption. However, the future it aims for is very attractive, and it is certainly a project worth keeping an eye on.

Investing in crypto assets always involves risk. This article is written to help you understand the technology and project called ICP, and does not recommend any specific investment. Please gather information yourself (DYOR – Do Your Own Research) and make your own decisions at your own risk.

FAQ: Frequently Asked Questions

Q1: What is ICP in one word?: A1: ICP (Internet Computer) is a new type of Internet infrastructure that allows websites and apps to run directly on the blockchain. It aims to create a more open and secure web without relying on centralized servers.
Q2: What are ICP tokens used for?: A2: ICP tokens have three main roles: (3) Governance: Used to participate in the NNS (Network Management System) and vote on proposals regarding the future of the network. (2) Compute charges: Used to purchase fuel called "cycles" to run canisters (apps on ICP). (3) Remuneration: It is paid as a reward to node machine operators and NNS participants who contribute to the network. Of course, it can also be exchanged for other cryptocurrencies at the exchange.
Q3: Is ICP safe?: A3: ICP aims for high security by making full use of blockchain technology and unique encryption technology (such as chain key technology). Because it is distributed, it has few single points of failure (a single point that causes the entire system to stop working) and is designed to be resistant to tampering. However, no system can be said to be 100% secure, and the security of each application created on the platform depends in part on the developer.
Q4: How do I get started with ICP?: A4: If you are interested in ICP tokens, you can first open an account at a compatible cryptocurrency exchange and purchase them (e.g. 99bitcoins.com purchase guide – Position 14). If you want to use dApps that run on ICP, you should create an “Internet Identity” and prepare a compatible wallet. If you are interested in development, there is a wealth of documentation and tutorials available on the official website (internetcomputer.org).

A complete guide to the Internet Computer (ICP): A thorough explanation of the potential of the next generation Web3