The latest cryptocurrency called Internet Computer launched onto the scene earlier this month and it has fatly become one of the most important digital currencies, hurdling into the top 10, behind such well-known names as Bitcoin, Ethereum, and Dogecoin.
With exactly thousands of cryptocurrencies before in existence, it seems like the world doesn’t need another. But the market lapped up Internet Computers fastly and has continued to remain interested in the digital currency, in part because it has several goals than many crypto coins.
Here’s how the Internet Computer works and why it stands apart from the cryptocurrency pack.
What is Internet Computer crypto?
Internet Computer (ICP) is a cryptocurrency or digital token that allows users to create websites, apps, and other web-based applications. The cryptocurrency was developed by the Dfinity Foundation, and it’s backed by impressive venture capital firms Andreessen Horowitz and Polychain Capital.
The assumption of cryptocurrency is that it can be used as a way to re-cycle the web but in an even more reorganized form. Think of it as a reorganized computer network that could run a new or several versions of apps on the web. For this reason, the project’s founder says it has the capacity to challenge internet titans such as Facebook, Google, and Amazon Web Services.
Other changes include apps for reorganized finance – called Defi in the sector. Such Defi apps could use cryptocurrency to replace typical financial processes.
And given its quickly reorganized network Internet Computer can scale its capacity with growth in demand, says Dfinity.
So it might be more beneficial to think of Internet Computers( ICP) less as cryptocurrency (in the typical sense of currency) and more as a network that uses blockchain technology to power apps.
How did the Internet Computer become so instantly popular?
The unexpected popularity of Internet Computer (ICP) can be detected to at least three things:
- Its huge potential: The cryptocurrency’s founder has made huge claims about the potential of the cryptocurrency to replace, or at least dig, the internet huge from their high positions. Some claims include the speed of the cryptocurrency, its ability to scale fastly, and its ability to sharply bring down computing costs.
- Backed by big-name investors: Andreesen Horowitz is a big-name venture capital firm, while another key investor (Polychain Capital) specialises in venture capital for crypto. The backing of well-known investors brings others to the party.
- Promotion: Several market analysts have before come out with price targets for the new crypto, and have projected great price growth over the coming years. Understandably, that hasn’t irrigated investors’ enthusiasm one bit.
Of course, part of the price growth in Internet Computers also has to do with the hopeful climate for cryptocurrencies generally. It’s a great time to capture the public’s imagination with huge stories and raise huge money to continue a cryptocurrency project.
How Internet Computer differs from other cryptocurrencies
One of the greatest questions about any cryptocurrency is how it differs from any other crypto. Here are three ways that Internet Computer stands out from other players:
- It allows anyone to develop software on the internet. The technology allows anyone to use its blockchain technology to develop apps and lets them do an end-run around the big tech software houses.
- It runs on a reorganized network, not the cloud. In contrast to several other blockchains that run on the cloud, Internet Computer (ICP) runs on allocated hardware set up by independent parties, according to Dominic Williams, founder of Dfinity.
- It’s fast. While finished transactions using some cryptocurrencies may take 30 minutes or more, Dfinity shows off that its crypto operates at web speed.
Once more, it may be useful to think of Internet computers (ICP) as something separate from the currency in the sense that the term is generally used.
Where can you trade Internet Computer crypto?
In the face of its popularity, you may not be able to trade Internet Computer crypto at just any broker or exchange. But at least two of the greatest exchanges do offer it. Coinbase, which newly managed its IPO, allows users to buy, convert, sell, transfer or save the crypto, and Binance also offers the ability to trade the coin. For the present, you can also trade Internet Computers on the somewhat smaller exchange Gate.io. Also, check Bitcoin Loophole for more information.
Internet Computers contract some huge benefits, but those trading the cryptocurrency would be keen to detect what exactly they’re buying. That’s all part of risk management when dealing with cryptocurrencies, which show unstable price raises and can easily shake out less-experienced traders. So it can be quick for individuals to become caught up and make emotional decisions without considering their permanent objectives.