What is Internet Computer Protocol (ICP)?

nternet Computer first was launched in 2021 by the dfinity team with the mission to replace the internet as we know it, by providing users and developers with the ultimate blockchain that can power dApps, software and more at web speed!

How does Internet Computer Protocol work?

The Internet Computer uses a unique consensus mechanism called, Proof-of-Useful-Work (PoUW), which is supposedly a million times more efficient than Proof-of-Stake! What makes the PoUW consensus mechanism so special?

Well, the InternetComputer Protocol connects an entire network of nodes set up by individuals, into one boundless independent network, called the World Computer. The nodes are converted into subnet blockchains which focus on smart contract computation.

Every subnet is connected, and new subnets can be added or removed at any time. This allows the protocol to achieve incredible throughput, fix bugs, launch software upgrades and so much more decentralised power!

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Why Internet Computer Protocol (ICP)?

The Internet Computer blockchain allows developers from both Web2 & Web3 backgrounds to create dApps or services. The blockchain is notorious for GameFi, Metaverse and SocialFi protocols, however, is also home to many DeFi protocols.

One thing that amazes me is the efficiency of ICP’s decentralised storage. Let me explain by comparing ICP with another major blockchain. It costs $110K per 1GB of data on the Solana network, yet costs only $5 on the Internet Compuer blockchain…

The Internet Computer blockchain has become a desired network for many to build on and especially use. Let’s take a look at the thriving ICP ecosystem that is powered by the native ICP token.

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Internet Computer Protocol (ICP) Ecosystem

There are currently 98 protocols within the Internet Computer ecosystem, therefore I am going to pick out my favourite ones that caught my attention:

• DSCVR – The number 1 social media platform within the ecosystem that already has over 175K users! This protocol allows its users to form communities into what are called Portals. Portals can be NFT Gated, airdrop fungible and more!
• Kinic – Hosted on the ICP blockchain is the world’s first decentralised search engine that has already facilitated over 3 Million searches!
• OpenChat – Think WhatsApp but with decentralised powers. Already a community of over 80K and growing!

Whilst I could pick out many more, I think it’s best you take a look for yourself. As the world moves to a more decentralised and data-private environment, the odds of the Internet Computer becoming a first choice for both users/devs are very high!

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Bitcoin & Ethereum Integration with Internet Computer Protocol

I think it’s safe to say that any blockchain without multi-chain capabilities will eventually drown and become a thing of the past.

Internet Computer is on a mission to connect the largest and most popular blockchains, so anyone and everyone can explore them with ease!

How you may ask?

Recently, Internet Computer integrated the world’s largest blockchain, Bitcoin. Not only has Bitcoin joined the Internet Computer, but Internet Computer users can also access the Bitcoin network!

Most importantly, we can all agree that Internet Computer needs to integrate Ethereum and every EVM-compatible network. Most importantly Polygon, Arbitrum, Avalanche, BNB Chain and the other leading networks. Well, the good news is the Internet Computer Protocol is working on that as we speak. The date is unknown, but stay tuned!

Will Internet Computer integrate the Cosmos ecosystem? I would imagine they are focusing on Ethereum, but this is definitely something many would love to see!

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ICP Token

As you may have guessed, the ICP token is used as a means of exchange, to pay gas fees etc.

It doesn’t stop there. As the Internet Computer Protocol is truly a decentralised protocol, it allows ICP holders to participate in the governance of the network. Users can create proposals or vote on existing ones.

The ICP token can also be converted into what’s called, Cycles. Cycles serve as gas for storage and computation. These Cycles are able to fuel bandwidth and storage which helps the network to operate smoothly.

Compared to other blockchains, this method allows users to interact with decentralised applications on the ICP network without any tokens. Instead, developers are responsible for covering fees and storage costs! This provides users with the smoothest and most profitable experience!

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How to Buy Internet Computer Protocol (ICP)

As we mentioned, the ICP token is not available on Ethereum or any EVM-compatible networks. The ICP token is available on the ICP and Bitcoin lightning network, not to mention it is listed on 99% of major centralised exchanges.

There are two main ways to buy ICP, but you will always go through a centralised exchange (CEX). Here are the options:

Option 1- Centralised Exchange

We recommend using one of these centralised exchanges when buying or trading the ICP token. Here is a list of CEXs with a few delicious promotions:

• Binance - The most popular CEX in the world
• ByBit - EARN UP TO $30K in DEPOSIT BONUSES
• BitGet - Trade on BitGet and receive 0% Deposit Cashback + $5,000 DEPOSIT BONUSES
• Coinbase - Spend $100 and Get $10 back!
  

Option 2 - DeFi Wallet & Decentralised Exchange

To get started you will need a DeFi wallet and make sure to secure your seed phrase with a hardware wallet (Trezor/Ledger):

• Bitfinity Wallet
• AstroX ME - ME wallet allows users to store crypto and NFTs without a seed phrase. Clean user interface and is great for NFT collectors.
• Stoic Wallet -  A popular digital ICP wallet that has all the essentials you would need in the world of DeFi, especially if you use it daily!
• Trezor
  

If you are buying ICP through your DeFi wallet, we have compiled a small list of Decentralised Exchanges (DEXs) for you to swap or trade assets that are available on the network.

• Infinity Swap - This DEX has seen investments raised by leading investment firms PolyChain, Capital +, a16z and more!
• Uniswap Front End on the Internet Computer - The most popular and trusted decentralised exchange within any blockchain network (Weird link, but its been verified and trusted by the ICP team and can be found on the ICP website)
  

There are not that many decentralised exchanges in the ecosystem as of yet, but these are the two most used DEXs in the ecosystem.

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Conclusion

At the time of writing, ICP is sitting at a price of $3, ranked #33 on CoinMarketCap and has a market cap of $1.33B! The ICP token once peaked at an all-time high of $750.73 and reached a market cap of over $52B!

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Official Internet Computer Protocol Links

Internet Computer Protocol Twitter

Internet Computer Protocol Website