Internet Computer/ICP#38 86

What is Internet Computer Protocol(ICP)?

ICP is a decentralized layer 1 canister smart contract execution platform, that allows the creation of web-based services on a secure and decentralized, protocol, to run at web speed. ICP(originally known as DFN) token powers the network. The network is based on threshold cryptography, state machine replication, and a novel consensus algorithm.

The ICP token is a vital part of the Internet Computer, utilized for governance and utility. ICP is a governance token and can be staked to create "neurons". This will give holders the ability to vote on proposals and be rewarded through the Network Nervous System (NNS), which is a decentralized autonomous organization (DAO).

 It can also be converted into "cycles," which developers use for computation and storage on the network, through a novel "Reverse Gas Model" that makes gas fees obsolete for end users.

ICP also incentivizes node providers by providing them with ICP for the infrastructure they provide and it can be used in decentralized exchanges to become a co-owner of a Service Nervous System (SNS) DAO. The ICP token follows the ICRC-1 standard, ensuring compatibility across the ecosystem, and supports fast, low-cost transactions,

The Internet Computer’s architecture is built on subnets, which are independent node machines deployed across data centers worldwide. Each subnet plays a critical role by hosting canisters, which are the Internet Computer’s version of smart contracts, and executing messages. Canisters not only store code and state but also process logic, making them highly efficient for hosting decentralized applications (dApps). 

Internet Computer Protocol is Operated and maintained by Dfinity Foundation Led by its current CEO  Dominic Williams(As of Oct 2024). The Network is governed by the Network Nervous System (NNS), a decentralized mechanism that allows the members of the blockchain to control the evolution of the ecosystem. 

This is done by allowing members to create neurons by locking up their ICP tokens. Members may engage in governance processes through staking and voting on ICP network proposals regarding the functioning and structure of the network. To encourage engagement in this governance system, voting rewards are given concerning the amount of ICP

History of the ICP Blockchain

The Internet Computer (ICP) blockchain was developed by DFINITY, initially founded in 2015 by Dominic Williams and formally incorporated as the DFINITY Foundation, a non-profit organization based in Zug, Switzerland, in October 2016. Williams envisioned creating a "World Computer" to replace traditional IT infrastructure and host all of humanity’s systems and services, while also enabling a fully on-chain Web3 ecosystem.

In 2017, DFINITY began raising funds to develop the Internet Computer. The first whitepaper outlining its consensus mechanism was released in January 2018.

After a long period of development, the Internet Computer was finally launched and became open source on May 10, 2021. Originally the ICP token when in development was known as DFN which was referred to as DFINITY, however when the network was launched in 2021 the name was changed to ICP.

How does ICP technology work?

The Internet Computer (ICP) provides users with the ability to create and run applications on the cloud while utilizing a novel architecture to improve blockchain. It works through multiple completely separate blockchains called subnets which provide canister smart contracts.

Subnets and Canisters: With canister smart contracts, subnets are separate blockchains that run WebAssembly (WASM) bytecode and store data. Canisters can run code without anyone knowing the data it holds once stored, and state modification can only happen during code running.

Node Machines and Scalability: Node machines located in data centers all over the world control subnets through the execution of thousands of canisters. This setup offers sufficient processing and microprocessor RAM and thus the system is stable and productive despite partial operational node loss.

Chain Key Cryptography: ICP uses Chain key cryptography, which simplifies the network and provides an improved extensibility. This technology enables nodes to directly relate to subsets of the entire subnet and that automatically releases them from the burden of having to check all the preceding blocks and the entire procedure becomes faster and more secure.

Governance: The governance model entails the locking of ICP tokens in neurons which gives members a voting right on the proposed networks. Voting power is proportional to the quantity of staked ICP and its dissolution delay of up to eight years. This mechanism minimizes cases of short-termism and also safeguards the long-term shareholders’ interests.

ICP token Performance Highlights

Launched in May 2021, the agenda of ICP cryptocurrency is to go beyond transforming the public internet into a global network. ICP was launched through a sensational launch raising about 120 million dollars during the initial coin offering (ICO). 

Within a short period after launch, the token was released for trading and was soon very popular in the crypto market. The price of the ICP token was around $0.1 upon issue, yet the All-Time– High ever recorded price of around $700 just a few minutes after the onset of trading on May 10, 2021. 

Such achievements towards ICP made it one of the top ten assets in terms of market capitalization that year. An All-time low of ICP was recorded on  June 10, 2023, reaching a price of  $2.87.

There are about twenty million tokens over and above the maximum token supply of ICP which is set at 526 million tokens in total. As of 2024, the approximate amount in circulation should be close to 474.4 million tokens.

Where can I buy an ICP Token?

As of 2024, it is found that ICP tokens are being traded in more than 40 exchange platforms. The two primary exchange platforms within which more trading activities are carried out are Binance and Gate.io.

All these platforms are CEX (Centralized Exchanges), where major players include Binance, OKX, KuCoin, Coinbase Exchange, Gate.io, and WhiteBIT.

The exchanges available to the US markets include Binance US, Coinbase Exchange, Kraken, and Binance.

The most famous trading pairs for trading ICP include: ICP/USDT

ICP/USD, ICP/EUR, ICP/BTC, ICP/TRY

Where to store my ICP token?

ICP tokens can be stored in multiple wallets designed for different activities undertaken on the ICP blockchain. Here are the available categories of wallets:

• Asset wallets:

This is a wallet type that is used for storage, transfer, and reception of ICP and other fungible tokens (ICRC-1/ICRC-2) such as ckBTC or ckETH, and also non-fungible tokens (ICRC-7).

It allows users to stake ICP, create neurons, and engage in the Network Nervous System (NNS) for governance.

For instance: Plug, Stoic, and Oisy are the wallets that  come under Asset controlled wallets 

• Canister-Controlled Wallets: Cycles Wallet, Cycles Ledger

You can open these wallets and keep a balance containing assets on one blockchain (say Bitcoin or Ethereum) and also spend it on other blockchains – EVM etc.

While “Cycles wallet” is still supported, the “Cycles ledger” has now been introduced and recommended instead to perform these functions.

By doing so, both users and developers will be able to ensure proper engagement with ICP tokens and other asset’s wallets by picking the right wallet type.

Price Prediction Of ICP Token from 2025-2030 

In the opinion of Coinpedia, the ICP price prediction in the upcoming years from 2025 to 2030, may go as follows:

• 2025: Average prediction for LTC is $8.01 reaching a high of $13.75 and a low of $19.50.

• 2026: Average prediction for LTC is $17.12 reaching a high of $24.01 and a low of $10.24.

• 2027: The highest possible maximum was estimated at $30.25, and the lowest at $14.58, with the overall average at $22.41.

• 2028: Out of AMC the maximum price is expected to reach $39 and minimum to $19 with an average of $29.

• 2029: It gives the highest token price of $51.06, the lowest price of $23.99 with an average token price of $37.52.

• 2030: In the best-case-scenario, LTC might reach $66.89, at the worst, it might be traded at $30.45 on average, it would be $48.67.