Internet Computer Token (ICP) Review
Internet Computer (ICP) is the proprietary digital currency of the Internet Computer platform, a revolutionary decentralized blockchain-based platform aiming to create a decentralized version of the internet independent of centralized cloud servers like Amazon Web Services. This enables users to deploy websites, apps, and social networks in a decentralized environment. Developed by the DFINITY Foundation in Zug, Switzerland, Internet Computer offers an alternative to traditional cloud servers.
Internet Computer operates on a protocol run by global autonomous nodes, determining resource allocation for applications. The ICP token is crucial, providing computing power similar to Ethereum's gas fees. It also offers governance, allowing holders and stakers to vote on development proposals.
ICP operates with both inflationary and deflationary elements. It incentivizes holders with new tokens through votes, but tokens are burned after powering transactions and computing. As usage grows, ICP may become deflationary.
Liquidity and Metrics
ICP's current supply is 126,502,138, with a maximum of 469,213,710, offering room for value growth. Internet Computer processes around 10,000+ transactions per second, comparable to centralized providers.
ICP's disbursement rating is low due to concentration among developers and early investors. This might change with wider trading and token distribution. Developer engagement is medium, led by Dominic Williams, CEO of DFINITY. A $220 million developer fund aims to attract more developers.
Liquidity is medium, with ICP in the top ten by market cap and listed on major exchanges. While not on par with established coins, liquidity is improving. ICP has growth potential with expanding adoption and utility.
ICP Origins
ICP's history dates to 2016 with the DFINITY Foundation's goal to create a decentralized blockchain for websites and internet services. Major investments in 2018 led to significant progress. The mainnet launched in December 2020, fully live on May 7, 2021, with ICP reaching an all-time high shortly after. A $220 million developer fund was recently established to accelerate the platform's development.
Strengths of Internet Computer (ICP)
ICP stands out with its chain key technology, processing transactions faster than Ethereum and Bitcoin. The Internet Computer platform aims to create a decentralized web, enhancing privacy and transparency. ICP's potential in decentralized finance (DeFi) adds value within the crypto ecosystem. The developer fund is expected to drive development.
Drawbacks of Internet Computer (ICP)
The platform is relatively untested, with potential bugs. Widespread adoption remains uncertain, and migrating from established servers might face resistance. ICP's distribution rating is low, but this might change with trading. While liquidity is improving, it's not on par with established coins.
ICP Pros and Cons
Pros:
- Backed by prominent VC firms, indicating confidence.
- Clear use case in Internet Computer platform.
- Deflationary nature could increase value over time.
- Growing backlash against large tech corporations may drive demand.
- Offers instant and collateral-free flash loans.
Cons:
- Platform adoption remains uncertain.
- Platform requires further testing and development.
- Limited availability on some exchanges impacts liquidity.
