A newly launched crypto asset is turning heads after torching its way into the top 10 with a multi-billion dollar surge in its market capitalization.
Internet Computer (ICP) is a crypto project developed by Swiss-based nonprofit Dfinity. The project is touted as a blockchain that aims to replicate the speed, power, and scale of the internet without relying on centralized systems such as firewalls, cloud computing infrastructure, and databases.
Crypto analyst and Coin Bureau host Guy explains how the Internet Computer is revolutionizing the internet and smart contracts as we know them.
“From a bird’s eye view, the Internet Computer consists of data centers spread around the world. Each data center contains multiple nodes and nodes from data centers are grouped together to form something called a subnet. Each subnet forms a proof-of-stake blockchain which uses a novel consensus mechanism called relay invented by founder Dominic Williams… Subnets host decentralized applications running on the internet computer.
Now, whereas regular crypto DApps (decentralized applications) consist of a collection of smart contracts, each DApp on the Internet Computer is made up of one or more canisters. Canisters are like smart contracts on steroids. They can automatically create new versions of themselves on other subnets to support additional users and can be leveraged by other developers building DApps. Because subnets only consist of a handful of nodes running in powerful data centers, this makes both transactions and applications run at speeds that are comparable to the regular internet. Not only that, but users do not need to pay any fees when interacting with canister applications unless it’s something that requires transactions like a decentralized exchange or lending protocol.”
Guy adds that ICP, the native token of the protocol, has three use cases: governance of the project, payment for canister fees, and rewards for data centers and voters participating in governance.
On May 10th, the ICP token was listed on major crypto exchanges including Coinbase Pro, Binance, and Huobi Global and hit an all-time high of $700.65. The token has retraced since, and it is now trading at $150.26. With a market capitalization of $18.63 billion, ICP is currently the 10th largest crypto asset, according to CoinGecko.