{"id":"internet-computer-icp","title":"Internet Computer (ICP)","content":"**Internet Computer** is a [blockchain](https://iq.wiki/wiki/blockchain) network that allows the creation of web-based services on a secure and decentralized protocol. The Internet Computer is powered by the Internet Computer Protocol (ICP) token formerly known as DFN, which enables users to re-create the web and power apps in a more propagated form, pay fees for transactions on the blockchain (serves as a gas for transactions), reward participants or data centers and make governance decisions where holders can vote on the future of the network. The ICP token is a utility token that plays a key role in the Internet Computer network. [\\[8\\]](#cite-id-oaimkt8h0gg) [\\[9\\]](#cite-id-w67h42f0tp) [\\[3\\]](#cite-id-0d7tt5mgdhwn)​\n\n[YOUTUBE@VID](nvgzxedJtfE)\n\n## History\n\nIn early 2016, Internet Computer came as an idea conceived by [Dominic Williams](https://iq.wiki/wiki/dominic-williams), the chief scientist and founder of DFINITY. DFINITY is a not-for-profit digital foundation that developed and maintained the Internet Computer project for 5 years before its official launch. [\\[5\\]](#cite-id-q0gikincu5) [\\[6\\]](#cite-id-ta6mfbu73de) Until 2018, funding rounds were conducted for Dfinity which raised about 35 million were released via an [airdrop](https://iq.wiki/wiki/airdrop) [\\[13\\]](#cite-id-qjee1atb1xt) in 2018.\n\nBy 2019, the full development of the token started with the release of Copper and the ICP went live in May 2021. It enabled the reach for [blockchain](https://iq.wiki/wiki/blockchain) singularity. That is a blockchain that is able to run the web from hostage to storage and services, having everything in a secure protocol without the interference of a third party. [Ethereum](https://iq.wiki/wiki/ethereum) alike, ICP allows the launch of [decentralized applications (DApps)](https://iq.wiki/wiki/decentralized-application) in its network but makes use of the upgraded version of [smart contracts](https://iq.wiki/wiki/smart-contract) (as present in blockchains like Ethereum) in the ICP network called Canisters. [\\[14\\]](#cite-id-8ceviw8th8a)​\n\nAccording to the founder, the Internet Computer Protocol (ICP) token symbolizes the third major innovation in [blockchain ](https://iq.wiki/wiki/blockchain)technology after [Bitcoin ](https://iq.wiki/wiki/bitcoin)and [Ethereum](https://iq.wiki/wiki/ethereum). This innovation is perceived as one evolving the internet into its next big event.\n\n> \"Internet Computer has come to put an end to big tech monopolies and replace the overly circulated cloud service system with a more decentralized world network and having an eye on becoming an extension of the internet\" - Dominic Williams\n\n## Overview\n\nInternet Computer (ICP) was launched in 2021 by Dfinity Foundation, founded by [Dominic Williams](https://iq.wiki/wiki/dominic-williams). The network is designed to allow all developers, enterprises, and business owners to build and deploy software on the \"open internet\". The creators plan to replace and improve the private internet infrastructure to one that eliminates the need to totally rely on security platforms and existing technologies. The main idea, therefore, is to have a decentralized global network powered by blockchain technology that is fast enough to support and run the entire base layer of the web, including [Web 3 ](https://iq.wiki/wiki/web3)and [DeFi ](https://iq.wiki/wiki/defi)applications. [\\[12\\]](#cite-id-y0btor34pyo)​\n\n[YOUTUBE@VID](XgsOKP224Zw)\n\nThe Internet Computer operates on a technology called Chain Key Technology which consists of other systems namely Network Nervous System (NNS), Internet Identity, and Threshold Relay Consensus among others. Thousands of nodes run to secure the network which forms subnets when grouped. These subnets have a [Proof-of-Stake](https://iq.wiki/wiki/proof-of-stake) (PoS) mechanism such that the more tokens are staked the more the reward. [\\[11\\]](#cite-id-gwtcjg9rrs8)​\n\n### Network Nervous System (NNS)\n\nThe Internet Computer is governed by the NNS, which stands as one of the largest [DAOs](https://iq.wiki/wiki/dao) in the world. Operating as a completely on-chain, permissionless system, it facilitates continuous upgrades to the Internet Computer through the voting of ICP token holders. [\\[19\\]](#cite-id-bzwfq6a4vp)​\n\n#### Staking\n\nThe NNS allows users to create voting neurons by [staking](https://iq.wiki/wiki/staking) ICP governance tokens, which serves as a mechanism for the community to express their collective will through algorithms. Neurons act as accounts and require notice of withdrawals, with the dissolve delay configuration determining the notice period. Neurons' voting power and relative claim to voting rewards are determined by the staked ICP quantity, dissolve delay, and age. Neurons can vote manually or automatically by following other neurons, allowing for liquid democracy. Proposals in the NNS are decided through a voting process involving neurons created by community members who stake ICP tokens. Token holders earn rewards by locking staked ICP tokens in these neurons, which have a fixed notice period before withdrawals can be made. Neuron owners can configure the dissolve delay for up to 8 years, but the neuron must have a dissolve delay of at least 6 months to qualify for voting. [\\[20\\]](#cite-id-18c2gwgp5xe)​[\\[25\\]](#cite-id-d2bejpcaaid)​\n\nNeuron holders participate in a crypto-economic game that incentivizes them to vote for or against proposals or to configure neuron follows to automatically vote in a way that drives the long-term value of the Internet Computer network. [\\[20\\]](#cite-id-18c2gwgp5xe)​\n\n### Tokenomics\n\nThere are two native tokens involved in the Internet Computer network, and they include:\n\n* **ICP -** an exclusive control token for managing the network\n* **Cycles -** a [stablecoin](https://iq.wiki/wiki/stablecoin) used to support computation, similar to the \"gas fee\" for [Ethereum](https://iq.wiki/wiki/ethereum). Just that users do not need to pay the gas fee when working with Canisters unless transactions are involved.\n\nICP tokens can be locked in the Network Nervous System (NNS), an algorithm protocol system that runs the network. They can also be converted into cycles, as the gas fees for computation using containers. This process involves burning ICP tokens to convert to Cycles for computation and it is termed deflationary.\n\n[YOUTUBE@VID](H2p5q0PR2pc)\n\n#### ICP Functionality\n\nThe ICP token helps with the operation of the Internet Computer [blockchain](https://iq.wiki/wiki/blockchain) and the following outlines its core use cases. [\\[22\\]](#cite-id-14atjeu0einh)​\n\n* **Node Provider Rewards**: [Node](https://iq.wiki/wiki/node) providers on the Internet Computer [blockchain](https://iq.wiki/wiki/blockchain) receive ICP rewards for offering compute/storage infrastructure. The flat monthly reward is calculated in fiat and paid in ICP tokens, ensuring a constant cost for running a node. The reward varies slightly based on geographical location to encourage a wider distribution of nodes. Node providers receive rewards as long as they maintain the right quality of service, and the rewards are paid by minting new ICP tokens, causing inflation.\n* **Governance**: ICP token holders can create Neurons by [staking](https://iq.wiki/wiki/staking) (locking) their tokens. Neurons enable token holders to secure voting rights via the Network Nervous System (NNS), an on-chain open governance system. NNS allows neuron holders to vote on proposals related to upgrading the IC protocol and software, onboarding new [node](https://iq.wiki/wiki/node) providers, adding node machines, and creating new subnet [blockchains](https://iq.wiki/wiki/blockchain). Neurons can follow other neurons to delegate voting power, and holders receive rewards for participating in governance through the voting process. These rewards are paid by [minting](https://iq.wiki/wiki/minting) new ICP tokens, causing inflation.\n* **Fuel for Computation/Storage**: Canister [smart contract](https://iq.wiki/wiki/smart-contract) computations on the Internet Computer [blockchain](https://iq.wiki/wiki/blockchain) are powered by \"cycles,\" which are obtained by burning ICP tokens, similar to \"[gas](https://iq.wiki/wiki/gas)\" on [Ethereum](https://iq.wiki/wiki/ethereum). However, unlike Ethereum's \"user pays\" model, the Internet Computer uses a \"smart contract pays\" or \"reverse gas\" model, where Canister smart contracts are pre-charged with cycles, enabling them to pay for their own computation. This frees users from the responsibility of paying for gas with each transaction. [Burning](https://iq.wiki/wiki/token-burn) ICP [utility tokens](https://iq.wiki/wiki/utility-token) generate cycles, causing deflation.\n* **Transaction/Proposal Fees**: ICP holders are charged a small transaction fee in ICP when transferring their tokens between [wallets](https://iq.wiki/wiki/cryptocurrency-wallet), and a small fee when submitting proposals to the NNS. These fees are [burned](https://iq.wiki/wiki/token-burn) as part of the transaction, contributing to deflation.\n\n![ICPtoCycles.jpg](https://ipfs.everipedia.org/ipfs/QmW2oSkRyMRCxrFftwvFe3rWxSZ8iCkHjozs4qJ8LLimfB \"ICPtoCycles.jpg\")\n\n##","summary":"Internet Computer (ICP) is an open-source system powered by the ICP token that enables secure and decentralized web-based services and applications.","images":[{"id":"QmQW8sgLQyiPJ6g8aHR3ruSybyCHCfGnkBrWayfLh6QeCc","type":"image/jpeg, 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Bitcoin\",\"timestamp\":1677569575360},{\"id\":\"brlt5s0s8bo\",\"url\":\"https://medium.com/dfinity/internet-computer-footprint-assessing-ic-energy-consumption-and-sustainability-4a4dcf10707a\",\"description\":\"Medium - Internet Computer Footprint\",\"timestamp\":1677569795237},{\"id\":\"d2bejpcaaid\",\"url\":\"https://medium.com/dfinity/earn-substantial-voting-rewards-by-staking-in-the-network -nervous-system-7eb5cf988182\",\"description\":\"Medium - Staking\",\"timestamp\":1677570009319},{\"id\":\"okZWYryNOG\",\"description\":\"Validation Cloud and DFINITY Foundation Partner to Support Enterprise-Grade Blockchain Analytics on ICP\\n\",\"timestamp\":1748990265449,\"url\":\"https://cryptoslate.com/press-releases/validation-cloud-and-dfinity-foundation-partner-to-support-enterprise-grade-blockchain-analytics-on-icp/\"},{\"id\":\"oHkVroaSsO\",\"description\":\"Elliptic and DFINITY Foundation Establish Strategic Partnership\\n\",\"timestamp\":1748990277249,\"url\":\"https://www.binance.com/en/square/post/21037313944762\"},{\"id\":\"A5nuqwXKED\",\"description\":\"Elliptic and the DFINITY Foundation partner to set new standards in blockchain security and compliance across the Internet Computer Protocol Ecosystem\\n\",\"timestamp\":1748990289247,\"url\":\"https://www.elliptic.co/media-center/elliptic-and-the-dfinity-foundation-partner-to-set-new-standards-in-blockchain-security-and-compliance-across-the-internet-computer-protocol-ecosystem\"},{\"id\":\"FqDM207dU0\",\"description\":\"New Partnership Between Osmosis and Omnity Bridges ckBTC from Internet Computer to Cosmos\\n\",\"timestamp\":1748990456246,\"url\":\"https://www.bitdigest.io/posts/new-partnership-between-osmosis-and-omnity-bridges-ckbtc-from-internet-computer-to-cosmos\"},{\"id\":\"sdmM8XI9dF\",\"description\":\"ICP-Based Bitcoin Token 'ckBTC' Will Bridge to Cosmos Through Osmosis\\n\",\"timestamp\":1748990466947,\"url\":\"https://www.coindesk.com/markets/2024/09/18/icp-based-bitcoin-token-ckbtc-will-bridge-to-cosmos-through-osmosis\"},{\"id\":\"Xl3gapq8tm\",\"description\":\"Omnity and Osmosis Partner to Bring Internet Computer to Cosmos\\n\",\"timestamp\":1748990478864,\"url\":\"https://www.globenewswire.com/news-release/2024/09/19/2948684/0/en/Omnity-and-Osmosis-Partner-to-Bring-Internet-Computer-to-Cosmos.html\"},{\"id\":\"Aq20Mz2h2I\",\"description\":\"Cambodia Partners with DFINITY to Lead Blockchain and AI Innovation in Southeast Asia\\n\",\"timestamp\":1748990648549,\"url\":\"https://www.cointrust.com/market-news/cambodia-partners-with-dfinity-to-lead-blockchain-and-ai-innovation-in-southeast-asia\"},{\"id\":\"vXUDRlyt7Z\",\"description\":\"DFINITY Foundation Partners With Cambodian Ministry To Support Smart City 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