Internet Computer Token (ICP) - What is it and why is it so valuable?
Internet Computer Token has taken the crypto charts by storm. Its initial price of $630 when 469,213,710 ICP tokens were created at the Genesis unlock on Monday. Since the launch the token has seen a significant swing and volatility in price as many major exchanges came on-board to list ICP. After dropping to around $270, the price has rebounded an dis currently trading at $353.
The current price implies a total market cap of $165 billion dollars which would place it at number 3 on the crypto richlist!
Currently, only 123 million coins are in circulation at a market cap of $1.38 billion.
So why is this coin so valuable?
ICP is the utility token of the Dfinity Foundation’s platform and is used for governance, decision making and network transactions. This coin has reportable been in the construction phase for the past 5 years before being launched. Timing of the launch has not hurt the token price either as we see the bull market continuing to run.
The technology behind the token makes this project interesting. The platform will provide smart contracts operating at faster speeds than most current blockchains can handle.
Dominic Williams, the Chief Scientist at Dfinity, reportedly told CoinDesk that: “We want people to abandon traditional IT and move all systems and services to smart contracts.”
The platform’s layer 1 protocol is attempting to flesh out a decentralized public network with an eye on becoming an “extension of the internet,”
Source
According to the project’s website, Chain Key Technology “allows the Internet Computer to finalize transactions that update smart contract state in 1–2 seconds.” Source
In a nutshell, Dfinity is proposing that this technology will allow the token to operate with a single public key, allowing any device to verify transactions and digital objects making it more scalable than most other blockchains.
If this is the case, then this could be a game changer for the blockchain world. Any device being able to verify a transaction could be powerful. Only time will tell whether this technology will be effective and state what it is purporting to do. I will be keeping a keen eye on whether the platform can deliver and support a high token price.
Thanks for reading.
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Looks like an interesting prospect, something we should all be keeping a close eye on.
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This seems interesting @scooter77. We need more scalable & faster Blockchains to work with. Projects like Dfinity should be on Leo Finance.
Thanks for sharing!
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Your post was promoted by @finguru
Ah, so THAT'S what ICP is.
I saw it pop up on CoinMarketCap this week and thought its position had to be a mistake.
Seems pretty meh to me, but I believe in Hive so obviously I know nothing haha.
Nice post mate, keep up the good work :)
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Dang, $600+ to $300 seems like quite the drop though. If the use case is there I have no doubt it will recover, but right now it feels like you would be buying at a loss. Could be steal if it goes back up though!
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If it has been in the works for 5 years, I would of really wanted to see some of the research they made. But yes this is a really interesting token. If it does succeed then it will definitely boom but I don't think it is as easy to change everything to smart contracts. Mainly because people are adverse to change the those politicians/companies are happy with the current system. Because I have no idea what plans they have, I can't give any other opinion besides that.
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