Publication date: October 3, 2024
What is Internet Computer?
Internet Computer is an innovative cryptocurrency that aims to expand the functionality of the Internet. The project aims to create a public digital infrastructure on which developers can build directly without relying on traditional servers or cloud services. This makes it possible to develop decentralized applications and services that run directly on the Internet.
What makes Internet Computer unique is that it provides a scalable and fast environment for smart contracts. This allows developers to work more efficiently and users to benefit from faster and cheaper transactions. The platform aims to transform the Internet from a network for information exchange to a full-fledged platform for computational services.
How does Internet Computer work?
Internet Computer functions through a network of dedicated nodes, computers that make up the network, that are distributed around the world. These nodes work together to create a distributed computing environment. This allows the network to host applications and data without the need for traditional servers. This allows users to interact directly with applications running on the Internet Computer network.
The ecosystem uses the Internet Computer Token (ICP), which serves as fuel for the network. ICP is used to pay transaction fees and to vote on network proposals, contributing to the governance of the platform. Developers and users can participate by staking ICP, which provides them with rewards and gives them influence over the future of the network.
History of Internet Computer
Internet Computer was launched by the DFINITY Foundation, a nonprofit organization based in Zurich, Switzerland. The project was founded by Dominic Williams, a computer scientist with a passion for distributed systems. Since its inception, the team has worked hard to develop a new kind of Internet that is open and freely accessible to all.
An important milestone for Internet Computer was the launch of the mainnet in May 2021. The mainnet is the live network on which a cryptocurrency operates, as opposed to a testnet used only for experiments. With this launch, the project moved from a development and testing phase to an operational platform where developers can build and deploy real applications. Since then, Internet Computer has made multiple updates to improve performance and strengthen the security of the network.
Recently, Internet Computer has announced collaborations with leading tech companies to boost the adoption of the network. These collaborations have been made to provide developers with better tools and provide users with a seamless experience. The benefit of these collaborations is that they contribute to the growth and strengthen Internet Computer's ecosystem.
What's going on at Internet Computer?
Lately, Internet Computer has attracted attention because of some notable developments. An update to the platform was released that significantly increased the speed of transactions. This update included improvements in the consensus mechanism, so the network can now process more transactions per second.
In addition, there has been a growing community of developers building applications on the Internet Computer network. This increase in activity has led to increased use of the Internet Computer crypto ecosystem, which in turn has driven demand for Internet Computer tokens.
Another important event is the introduction of new governance features. Users can now have more influence on the direction of the project by voting on proposals. These developments have not only improved the functionality of the network but also strengthened the confidence of investors and users.
Price development of Internet Computer
Since its launch, Internet Computer's share price has, on balance, shown a sharp decline. Particularly shortly after launch, the stock price plunged tremendously. The chart below shows this clearly.
Factors that have contributed to the fluctuations include market volatility, general trends in the cryptocurrency market and specific news stories about the project. The recent updates and collaborations have had a positive impact on the Internet Computer rate, bringing the token back into the interest of investors.
In the chart below, we focus on the most recent data from the past year. Wwe observe that as trading volume rises, the price increases significantly up to April 2024, after which it noticeably declines again. Between $5.80 and $6.80 there are several bottom levels in the price, indicating further weakening.
Advantages of Investing in Internet Computer
- 1. Innovative Technology: Internet Computer offers a new paradigm for building Internet services. This may lead to unique investment opportunities by differentiating the project from other crypto projects.
2. Strong development team: With an experienced team behind the project, there is confidence in the continuous development and improvement of the network. This increases the likelihood of long-term success.
3. Scalability and speed: The network can handle a high number of transactions per second, which is attractive to both users and developers. This can lead to greater adoption and value creation.
4. Active community: A growing community of users and developers contributes to the ecosystem. This encourages innovation and can increase the value of the Internet Computertoken.
5. Governance opportunities: Staking ICP allows investors to participate in decision-making within the network. This gives them influence over the future of the project and can lead to a sense of belonging.
Disadvantages of investing in Internet Computer
- 1. Market volatility: As with all cryptocurrencies, the Internet Computer exchange rate is subject to strong fluctuations. This can lead to significant financial risks for investors.
2. Competition: There are other projects pursuing similar goals. The presence of competitors may hinder the growth and adoption of Internet Computer.
3. Regulatory uncertainty: Laws and regulations surrounding cryptocurrencies may change. This may have a negative impact on the project and the value of ICP.
4. Complexity of technology: Advanced technology can be a barrier to new users and developers. This can delay adoption and use of the network.
5. Security risks: While there is a lot of focus on security, there remains a risk of hacks and vulnerabilities. This can damage confidence in the project and cause financial losses.
Disclaimer: Investing involves risk. Our analysts are not financial advisors. Always consult an advisor when making financial decisions. The information and tips provided on this website are based on our analysts' own insights and experiences. They are therefore for educational purposes only.
