What is Internet Computer?

(Source: dfinity)

Internet Computer (ICP) is a groundbreaking innovation in blockchain technology developed by the DFINITY Foundation. It is not just a set of protocols, but aims to be a decentralized alternative to current centralized cloud services. ICP connects independent data centers around the world to build a new type of global computing system and a truly decentralized network.

Essentially, the Internet Computer is a revolutionary approach that extends the functionality of traditional networks. It provides a decentralized platform that enables independent data centers around the world to collaborate and operate together. Its unique architecture not only enhances data security and processing power but also promotes the democratization of network access, reducing reliance on major cloud service providers and challenging the existing cloud computing paradigm.

The core value and architectural features of the Internet Computer

• Canister Smart Contracts: characterized by high efficiency, scalability, and self-upgrading features.
• On-chain frontend and storage integration: complete deployment of application logic and user interface without relying on any off-chain servers.
• Reverse Gas Model: Lower the entry threshold for users and increase the willingness of Web2 users to migrate.
• High-speed execution and low latency: Meeting the demands of large-scale applications, supporting enterprise-level operations.

These designs not only make ICP a DApp execution environment but also further transform it into a decentralized platform capable of supporting entire internet services.

Break free from cloud dependency and embrace native on-chain applications

Most of today's decentralized applications (dApps) still rely on centralized cloud architecture to support their front-end and data storage, such as AWS or Google Cloud, which somewhat contradicts the original intention of Web3's decentralization and open trust. The emergence of ICP provides a whole new possibility: deploying the front-end, database, and logic operations entirely on-chain, truly realizing a completely decentralized application architecture. ICP adopts a reverse Gas model, which is contrary to the traditional user-paid fee logic of Ethereum, where developers pay the Gas costs, allowing users to access applications without holding tokens, which is crucial for the mainstream user experience.

ICP × Piggycell's Web3 infrastructure example

Recently, the South Korean Web3 DePIN project Piggycell chose to integrate ICP as its infrastructure, successfully completing a stress test with 3.5 million users and 100,000 devices, which also confirms ICP's advantages in physical device computation and large-scale transaction management. Piggycell founder John Lee clearly pointed out that ICP's smart contract capabilities, reverse Gas design, and its decentralized network composed of 26 global data centers make it an ideal choice for promoting large-scale DePIN applications. This move not only brings over 3 million potential users to ICP but also facilitates a deep linkage between $ICP and Piggycell's internal tokens like PGC, injecting new momentum into the token economic system.

Collaborate with Hedera to promote AI, interoperability, and decentralized front-end.

ICP not only focuses on application hosting and speed efficiency but also actively expands the technological frontier. In collaboration with the Hedera network, a technological alliance is being formed to attempt to combine the advantages of both in order to bring about transformation in the following three major areas:

• AI Native On-Chain: Explore executing AI logic directly on the blockchain, breaking the limitations of past AI that had to rely on off-chain servers.
• Frontend On-Chain: Complete on-chain deployment of DApp's UI, bidding farewell to traditional Web2 cloud hosting, and achieving a truly decentralized user experience.
• Chain Fusion: Achieving the free flow of Hedera and other blockchain assets and data through ICP's bridging technology.

These attempts open up new imaginations for Web3+AI and establish ICP's position as a multi-chain infrastructure and the core of AI on-chain.

The tokenomics of the Internet Computer

At the early launch phase of the Internet Computer (ICP) mainnet, its token distribution primarily focused on the core development team and early supporters, demonstrating a high emphasis on technological development and long-term governance stability. The specific distribution is as follows:

• Angel round investors hold the largest share, accounting for 24.72%, mainly consisting of the initial supporters of the protocol's concept.
• The DFINITY Foundation holds 23.86%, used to promote protocol governance, technical development, and long-term strategic planning.
• The core team members of the agreement receive 18% as a contribution reward and incentive, and usually have a lock-up and unlocking mechanism.
• Early contributors allocation 9.5%, covering developers, consultants, and collaborative teams.
• Strategic partners obtain 7%, emphasizing important alliances with the industry and the potential for application implementation.
• Pre-sale buyers hold 4.96%, being the community and market participants before the public offering.
• ICP protocol community allocation is 4.26%, used to support decentralized governance and community building.
• Partners hold 3.79% of the project, promoting technology integration and an interoperable ecosystem.
• Third-party consultants and investors account for 2.4%, assisting in the expansion of ICP's global layout.
• The ICP community airdrop accounts for 0.8%, rewarding early supporters and promoting user growth.
• The business promotion and subsidy fund is 0.48%, used for event rewards and project exposure.
• Node operation rewards account for 0.22%, used to incentivize infrastructure providers participating in network maintenance.

This allocation model balances early resource investment, core developer incentives, and community participation rights, constructing a sustainable, decentralized, and governance-vibrant token economy system for ICP.

Token Application

$ICP is the native token of the Internet Computer blockchain, carrying the following three core functions:

• Network Governance: $ICP holders can participate in ecological governance, such as voting, proposing, and participating in community decision-making.
• Resource Leasing: Developers need to use $ICP to deploy applications to Canisters in the network.
• Value capture: As applications and usage grow, $ICP will absorb more value with the expansion of the network.

Through this design, the ICP token combines governance functions with economic incentives, and has practical applications in various scenarios such as DePIN, AI, and DApps.

Start trading ICP spot immediately:https://www.gate.com/trade/ICP_USDT

Summary

Internet Computer is not just another public chain; it represents a comprehensive revolution regarding the on-chain internet, from DePIN practices like Piggycell to co-constructing a decentralized AI future with Hedera, and to the ultimate integration of on-chain front-end and smart contracts. ICP showcases the true potential of Web3, and as the ecosystem continues to grow, with the actual implementation of collaborative projects and the token economy gradually shifting towards application-driven models, the narrative of ICP has shifted from technological ideals to practical applications.