A new cryptocurrency launched this past Monday (10) is already among the ten digital currencies with the highest market value. Internet Computer (ICP) has now arrived with the goal of overcoming ether (ETH), native to the Ethereum blockchain. It is a project of the Dfinity Foundation that works in a network optimized for smart contracts and decentralized finance (DeFi).
This Wednesday (12), ICP capitalizes around US $ 36 billion, occupying the eighth position in market value among cryptocurrencies, according to data from CoinMarketCap. Its price is around US $ 300 dollars and, like all newborn digital currencies, it is extremely volatile.
As is to be expected, the euphoria over its launch on Monday made Internet Computer trade for more than $ 700, while its market value reached $ 90 billion, surpassing even dogecoin (DOGE). In that short period, the cryptocurrency has already been listed on major exchanges in the world, such as Binance and Coinbase, which has made it accessible to millions of investors and helped boost its price.
ICP competes with Ethereum in decentralized finance
The new cryptocurrency proposal resembles ether. ICP’s blockchain uses smart contracts that can power a range of applications and platforms. It is a digital currency aimed at decentralized finance, being able to build applications and programs that recreate the traditional financial system in an automated way. Thus, websites, social networks and other internet services can also benefit from the blockchain network.
“Internet Computer works very differently from any other blockchain,” Dominic Williams, founder and chief scientist of the Dfinity Foundation, told Bloomberg. “Today, many blockchains are run mainly in the cloud. Internet Computer, on the other hand, works entirely on dedicated hardware that is installed by independent collaborators around the world. ”
Therefore, Williams says that the ICP is essentially faster and more accessible than ether in its own structure. Comparing its blockchains, Ethereum is an expensive network for hosting DeFi applications and other services like NFTs (non-fungible tokens). Thus, Internet Computer arrives to offer a competitive alternative, being able to expand its processing capacity according to demand.
Free Internet of technological monopolies
Williams also noted that developers and Internet users today rely on programs created largely by technology companies. However, ICP and its blockchain allow the creation of applications and websites hosted on blockchain that will operate in a decentralized manner, bringing greater independence to online services.
In practice, the whole project is much broader and more ambitious. The ICP token works like a cryptocurrency that would become the monetary base for a “new internet”. Williams and the Dfinity Foundation’s proposal is to create a free network of the monopolies that now dominate online services, such as Google, Facebook and Amazon.
So far, the project has raised more than $ 120 million in investments. However, as much as its launch has reverberated around the world, the future of cryptocurrency and the entire Internet Computer project is still uncertain. The competition with Ethereum is heavy, mainly with the proximity of the long-awaited update of its blockchain that should optimize almost all aspects of the network.
With information: Bloomberg