Internet Computer (ICP) and the Future of Internet Infrastructure: How Blockchain is Set to Replace Traditional Cloud Services

Modified on Wed, 17 Sep at 12:56 PM

What is Internet Computer (ICP)?

The Internet Computer is a groundbreaking public blockchain network that brings a fresh wave of cryptographic innovation. It aspires to be the world’s first "World Computer," enabling the creation and hosting of decentralized online systems and services—ranging from social media platforms to complex enterprise software—without relying on centralized cloud providers or traditional IT infrastructure.

By allowing developers to deploy applications directly on the Internet Computer, it introduces a fully decentralized model, removing the need for cloud computing, web servers, or external storage. This opens new possibilities for true digital sovereignty.

Key innovations like chain key cryptography ensure that the network can scale and process transactions at unprecedented speeds, while the Motoko programming language is optimized specifically for building on this platform. Additionally, its community-driven governance model, powered by a Decentralized Autonomous Organization (DAO), gives participants direct control over protocol upgrades without needing disruptive forks—a significant evolution in blockchain technology.

Why Build on the Internet Computer

Today's internet is dominated by centralized platforms. Many popular web applications are closed-source, proprietary, and hosted by large tech companies. This heavy reliance on centralized providers makes online services vulnerable—if a data center experiences issues, entire platforms can go offline. Beyond outages, there are growing concerns about privacy and control, as centralized platforms have the power to censor content or misuse user data.

The Internet Computer aims to provide an alternative by allowing developers to build and host decentralized applications. It enables websites to be deployed directly on the public internet. Furthermore, the Internet Computer promotes open-source development and transparent software.

One way the Internet Computer achieves this is by transforming the power of crypto into computational power. The network charges fees based on the amount of computational power required by developers, making it possible to create and run any type of application on the Internet Computer.

Source: ICP

Examples of Internet Computer use cases:

For end-users: Accessing the Internet Computer will provide a more transparent experience, enabling decentralized and interactive application experiences, similar to those offered by cloud-based services.
For developers and service providers: The Internet Computer eliminates the costs, risks, and complexities associated with developing and deploying new applications, including microservices.

Additionally, the creation of the Internet Computer promotes a more open, creative, and innovative internet. Some examples include:

Interoperability: Permanent APIs and ownerless applications reduce platform risks and foster innovation and collaboration.
Autonomous memory: Eliminating the need for traditional database servers and storage, improving processing efficiency, and simplifying software development.
Reduced technological complexity: Simplifying the technology that IT organizations need to adopt and manage to improve operational efficiency."

Who’s Behind Internet Computer?

The Internet Computer project was founded in October 2016 by Dominic Williams, and it quickly garnered attention from top-tier investors like Andreessen Horowitz, Polychain Capital, and Multicoin Capital, raising a total of $121 million. Its public launch on May 10, 2021, marked a significant milestone in the development of a decentralized internet. With the launch, the Internet Computer’s code was open-sourced, and the ICP utility token empowered a growing community to govern the network, signaling a new era for decentralized technologies.

What sets the project apart is its extensive academic and intellectual foundation, with over 100,000 cryptographic research papers and 200 patents. This massive body of work underscores the technical innovation driving the platform.

Dominic Williams - Source: Slush

At the helm is Dominic Williams, who serves as both the project's founder and Chief Scientist of the DFINITY Foundation. Prior to his deep involvement in digital currencies in 2013, Dominic was a seasoned entrepreneur in the tech industry, having engineered various internet products. He even ran a massively multiplayer online game (MMO) with millions of users, further showcasing his expertise in scaling and innovation within digital platforms.

Key Features of the Internet Computer

The Internet Computer is a blockchain network designed to enhance the efficiency, speed, and decentralization of data storage and processing. It aims to address the shortcomings of the traditional internet, such as over-centralization, instability, and privacy concerns.

Source: ICP

Key features that distinguish the Internet Computer from other blockchains include:

Accessibility for dApp development: Anyone can create decentralized applications (dApps) on the blockchain platform using a simple interface, making it accessible to a wide range of developers.
Decentralized infrastructure: The Internet Computer operates on a truly decentralized network with dedicated hardware created by independent individuals, eliminating the reliance on centralized cloud servers.
High-speed processing: Unlike many other cryptocurrencies that may have slower transaction times, the Internet Computer offers rapid processing capabilities, enabling real-time applications.
Innovative Smart Contracts (Canisters): The platform utilizes a novel Smart Contracts model called "Canisters," which are self-contained software units capable of executing and storing data on the blockchain. This empowers developers to build highly scalable and customizable applications directly on the network."

What is ICP used for?

ICP is the native token of the Internet Computer Protocol and serves several purposes:

Network governance: ICP token holders can stake their tokens to create "neurons" which grant them voting rights within the Network Nervous System (NNS). Neurons allow users to submit governance proposals and act as an incentive system, rewarding users for their participation.
Creating "cycles" for Internet Computer usage: ICP can be converted into "cycles" to power the computation, communication, and storage costs of canisters. The blockchain employs a "reverse gas" model where smart contracts pay for computation, and cycles must be pre-funded for execution, similar to charging an electric vehicle.
Protocol rewards: ICP can be used to reward service providers (nodes) that support the Internet Computer network.

ICP tokens can be converted into cycles - Source: Messari

Supply and Token Distribution

At the network launch, a total of 469,213,710 ICP tokens were issued, distributed as follows:

Source: Messari

24.72%: Seed Investors - Individuals who invested 3.9 million Swiss Francs in February 2017.
23.9%: Dfinity Foundation - The Dfinity Foundation manages the funds raised from token sales. It also oversees the Foundation Endowment of ICP tokens, which is used to fund research and development, technology initiatives, community building, and partner incentives.
8.0%: Team members - Approximately 200 team members.
9.5%: Early contributors - 50 individuals who supported the team before the foundation was established.
7.0%: Strategic investors - From a $20.54 million fundraising round led by Polychain Capital, Andreessen Horowitz, CoinFund, Multicoin Capital, and Greycroft Partners.
4.96%: Private Presale Investors - Representing $97 million raised from a16z, Polychain, SV Angel, Aspect Ventures, Electric Capital, ZeroEx, Scalar Capital, and Multicoin Capital.

Interesting information about ICP

As of 25 December 2024, according to Coinmarketcap, ICP has a market capitalization of 5,438,176,959 USD, equivalent to 185,758,964,253 Thai Baht.

At the time of writing, ICP is trading at approximately 11.37 USD or 388.66 Thai Baht per coin. ICP reached its all-time high of $750.73 USD or 25,576.61 Thai Baht per coin on 10 May 2021.

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