How does Internet Computer differ from other cryptocurrencies and is it worth investing in it
The Internet Computer cryptocurrency with ICP token is a young project that was created for more effective management of the Internet community network. Many experts have already called it the most ambitious project of this year.
History of creation and technical features
The Internet Computer cryptocurrency entered the crypto market on May 10 , 2021 . Two days later, the currency entered the top 10 by capitalization, but then there was a rapid collapse of quotations.
The author of the project is an Englishman Dominic Williams, a graduate of King’s College London. Prior to that, he was engaged in cryptography and distribution systems for 20 years, held the post of technical director of the company in the field of crypto business, founded a company for the development of gaming software.
The ICP concept was conceived back in 2015. A year later, a project support fund was established in Zurich, Switzerland. The fund is managed by well-known experts in the field of cryptography, who previously worked at Google and other large companies.
The goal of the project development is to create an open network, the work of which is controlled by all members of the community, and thus destroy the monopoly of IT giants and make the Internet open and interesting. The network operates using Ethereum technology.
ICP cryptocurrency is a token of the Dfinity project (Decentralized Infinity, which means “decentralized infinity” in English). The administration of the DWeb network of the Dfinity project is handled by NNS (Network Nervous System), which is a decentralized management system. The token owner can create a node in the network (neuron) on which the deposit will be stored. You can withdraw the deposited funds only after 3 months.
Difference from other cryptocurrencies
A distinctive feature of Internet Computer is very fast transaction processing, usually within 5-10 seconds. For comparison, bitcoin and Ethereum have this indicator of 5-10 minutes.
Unlike other cryptocurrencies, the user has the opportunity to cancel the operation.
Advantages and disadvantages of the Internet Computer cryptocurrency
The following advantages of the coin can be distinguished:
- works with any ethereum application;
- fast payment processing, comparable to the speed of the Internet;
- low transaction cost.
Within the framework of the project, you can create websites, NFT, various open services.
The Dr web network is well protected. When hacking is attempted, a vote is launched to roll back the transaction. With a large number of users who voted “yes”, the system cancels the suspicious transaction.
The disadvantages of the project currently include low liquidity and high volatility. The project is young, its prospects are not yet clear. More than 5 years have passed from the start of development to market entry. For crypto projects, this is a very long time, during this time there were analogues that are not inferior in functionality.
What ICP tokens give
Users can use tokens to pay for digital products on the Dr web network. You can buy ICP only for cryptocurrency, and exchange tokens for another cryptocurrency, but not for fiat.
Tokens also give the right to manage network projects by voting. A member of the crypto community can receive them as a reward for active participation in the project network.
Where to buy, sell and store ICP
The coins are traded on major cryptocurrency exchanges, including Binance, OKEx, and Coinbase. They can be bought or sold in some crypto exchangers (for example, Change Now). You need to pay a commission for exchange operations.
You can store tokens in the same wallets or wallets on exchanges.
Prospects of Internet Computer: is it worth investing in it
Experts’ opinions about the future of the Internet Computer cryptocurrency are often opposite. Although the capitalization of the project is high, more than $ 1.5 billion, after a rapid period of initial growth, the value of the cryptocurrency is constantly decreasing. Because of this, some analysts consider the project a scam, the purpose of which is to make money on rapid initial growth.
The future of the project depends on whether representatives of the IT community are interested in Definity. If this does not happen, a surge of interest in this type of cryptocurrency should not be expected. Only time will show the viability of the project.
Published: 12 October, 2022