What Is $ICP? Crypto Aims to Replace Cloud Computing

Today, most apps, games, and social media platforms are controlled by large corporations that collect and often monetize user data. Some of the major players include Google, Meta, and Apple, which dominate the tech space and typically use centralized systems to store user data.

Crypto project Internet Computer Protocol (ICP) aims to challenge this domination by using the power of blockchain and smart contracts to create a fully decentralized network that can host apps, games, and other types of code and data.

Techopedia explores the $ICP crypto project and why it’s causing such a buzz in the tech and crypto world.

Table of Contents Table of Contents

1. Key Takeaways
2. ICP Aims to Create a "World Computer"
3. What Makes ICP Unique?
4. Who's Behind ICP?
5. What is ICP Token ($ICP)?
6. The Bottom Line
7. FAQs
8. References

Show Full Guide

Table of Contents

1. Key Takeaways
2. ICP Aims to Create a "World Computer"
3. What Makes ICP Unique?
Show Full Guide
4. Who's Behind ICP?
5. What is ICP Token ($ICP)?
6. The Bottom Line
7. FAQs
8. References

ICP Aims to Create a “World Computer”

At its core, ICP is a blockchain-based platform that aims to change how we use and build online services. Traditional internet services rely heavily on centralized systems like cloud servers or massive data centers controlled by big companies.

This setup can lead to issues like monopolization, poor security, and a tendency to misuse user data. ICP aims to fix all that by creating a “world computer” that is faster, safer, and truly decentralized.

Think of ICP as the tech equivalent of taking the power back. It’s a network where developers can build decentralized applications (dApps) without relying on data moving through Big Tech‘s servers.

Instead, ICP runs on independent nodes, which are specialized hardware owned and operated by various individuals or entities worldwide. This allows everyone to be part of the network.

What Makes ICP Unique?

First, ICP offers lightning-fast transaction speeds, processing them in just seconds. According to the project, it can execute up to 11,500 transactions per second with a 1-second finality.

Second, ICP relies on decentralized hardware spread across the globe instead of centralized data farms. This design eliminates a single point of failure, making the network more resistant to downtime.

Then ICP simplifies the process for developers to create dApps by offering user-friendly tools and interfaces.

Per the project:

“Moreover, any programming language that can be compiled to WebAssembly can be used, including Rust, TypeScript, Python, and Motoko.”

In effect, the ICP blockchain works like a supercharged cloud, allowing smart contracts to handle large amounts of data and run as fast as modern computers. This makes for a very different blockchain project than, for example, Ethereum (ETH).

“For example, the high performance of ICP smart contracts enables the demo of an AI inference model running on an ICP smart contract, which is uniquely possible on ICP.”

ICP’s smart contracts, called “canisters,” are the engine behind its services. These canisters are powerful, scalable, and capable of handling even the most demanding applications, from decentralized finance (DeFi) platforms to metaverse experiences.

In other ICP crypto news, and likely a factor in recent positive ICP price action (see below), the amount of ICP token burns increased dramatically over 2024, reducing the supply and making any individual ICP token worth more.

Who’s Behind ICP?

ICP was created by the DFINITY Foundation, a Swiss-based not-for-profit organization led by Dominic Williams. Founded in 2016, DFINITY claims to have the most extensive research and development team in the blockchain space.

The name DFINITY derives from Decentralized inFINITY, which was first used by its founder Dominic Williams in 2015 to refer to technical research he had performed with the hope of enabling Ethereum to become a true world computer blockchain.

According to the project’s wiki page, DFINITY became a standalone project once it “became apparent that a large and highly specialized team would need to perform years of blue sky R&D to realize the world computer vision”.

What is ICP Token ($ICP)?

Internet Computer (ICP) is the native token of the Internet Computer blockchain. It powers the network by being converted into “cycles,” which act as fuel for computations.

Users can stake their ICP tokens to participate in the network’s decision-making process through a system called the Network Nervous System (NNS). Here, they vote on proposals and earn rewards.

Additionally, when tokens are used as fuel, they are burned, reducing the total supply and potentially boosting their value over time.

In terms of tokenomics, ICP has a circulating supply of 478.68 million coins and a max supply of 528.43 million.

As of January 8, 2025, the ICP crypto price is $12.20, which gives a market cap of $5.83 billion, according to data from CoinMarketCap.

It is worth noting that ICP hit an all-time high of $750 in May 2021. It has since been on a downward trend, reaching as low as $3 by September 2023.

The Bottom Line

The DFINITY Foundation has bold plans for ICP. Within the next two decades, it plans to create a world where the Internet Computer overtakes traditional IT and cloud services, hosting most of society’s critical infrastructure.

While the project has yet to achieve that ambitious goal, ICP is worth watching.

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