Business investments have grown so much more flexible in recent years. Companies are investing huge amounts of money in the Internet in order to create newer opportunities for income. As a result, the Internet is the newer frontier that needs to be conquered in order for a business to stay afloat. This is where cryptocurrency comes into the scene. A new age of money-making that, as an entrepreneur, you need to know.
Still, you should know that the word ‘cryptocurrency’ is essentially an umbrella term, and there are other terms that you need to understand to have a better idea. Therefore, to help you with the overall understanding of crypto and the prominent Internet Computer (ICP) crypto. So sit back and let us look at some of the most important things that you need to know about the ICP or the Internet Computer protocol.
What is Internet Computer Crypto?
Internet Computer Crypto is a decentralized hosting and computing provider. The company shares a stark similarity with the worldwide system of computer networks
like Microsoft Azure, Google Cloud, and Amazon Web Services. However, the platform is much more than this.
Powered by chain key cryptography and smart contracts, it is as flexible as the internet itself. It is known to be decentralized and highly scalable. In simpler terms, sophisticated cryptography is used to formulate a comparatively more usable and secure blockchain.
Do not worry; things will become simpler as we move on. Let us dive deeper and see different aspects of ICP crypto and see whether it is a viable option for investment or not.
Components
Before things would become simpler, we need to understand the components that make up the Internet Computer Components. So, without further ado, let us dive right in:
- Nodes: It can be simply explained as a single machine that is connected to the internet. Nodes combine their overall computing power and, in turn, run the Internet Computer (ICP). However, if the internet slow on one computer, then the system would falter.
- Subnets: It is a group of nodes. Any program running on a particular subnet would be replicated across several nodes. This constitutes the basics of blockchain.
- Canister: The programs running across subjects are called canister. Therefore, a canister is a code, memory, storage, and state for all Internet Computer applications.
- The Network Nervous System: can be best described as a system of voting neurons. This system helps communicate the status of different proposals for protocol change or something similar.
- Votes: Each neuron receives voting authority on how long ICP is staked and how long it has to be locked away.
- Internet Computer (ICP): it is a utility token that can be purchased at common exchanges like Coinbase, Binance, etc. This is used to stake in a neuron in order to participate in the governance of Internet Computer.
- Cycles: These ICPs can be converted into cycles. And, 1 trillion cycles are equivalent to 1SDR. This conversion rate is not uniform and changes with the NNS proposal spaced apart after every 10 minutes.
How does it work?
Its sole objective is to decentralise the existing Internet system. On the web, data is everything. It is the currency. And every big corporation owns a sizeable amount of data or databases. Thus, security is a huge concern.
Internet Computer (ICP) tries offering better alternatives using open-source security systems. It functions completely on a user’s feedback. However, this can also work as a weak link in the system because the more open-source codes are used, the risk of a system breach increases. And on that note, let us look at other risks that you need to consider before investing in the ICP cryptocurrency.
What are the risks?
Like every other investment opportunity, Internet Computer too has some factors that you need to consider before making the switch. First things first, for an Internet Computer Protocol to function, a more complex set of hardware is needed than a traditional blockchain. Therefore, you need to have better internet infrastructure since slow internet on one computer would jeopardise the whole operation. As a result, only players who have good financial headway can actually set foot in this industry.
Secondly, there is very less accountability in a decentralised network like ICP. As a result, anybody can host any sort of content. Even though corporations offer some sort of moderation, it rarely applies to all forms of abusive content. Now the flip side of this moderation is that controlling authorities can, at times de-platform anybody.
Lastly, it is not the only system of this sort. There are other present in the market. These include the IPFS/Filecoin and MIT’s Solid. Both of which are highly established.
FAQs (Frequently Asked Question):-
Ans: ICP is currently running on the Internet Computer blockchain. Therefore, it technically qualifies as a coin. Still, the term is used fairly loosely, and the DFINITY team often refers to it as a token. Therefore, the answer is essentially inconclusive.
Ans: Given the current market situation, it will be difficult to answer this question in a straightforward manner. However, there are certain things that are working in favor of the coin. Firstly, the team at ICP is being led by industry veteran Dominic Williams. Secondly, the business roadmap of ICP is quite clearly established and has the potential to challenge business giants like Google, Facebook, etc.
Still, observing business trends and fluctuating ICP price is a good way to determine a good investment opportunity. Having this knowledge would help you succeed in the long run.
Ans: Dominic Williams and the DFINITY foundations are the creators of the Internet Computer.
Conclusion.
In summation, these are all the factors that you should know about before diving head-first into crypto mining. Internet Computer (ICP) can be very rewarding, but if you do not understand the overarching concepts that fuel the process, you will lose more than you can imagine. And this guide was meant to stop you from doing just that. For more crypto gyan, keep following us. Happy mining!
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