Internet Computer

Internet Computer In-depth Report Generated by AI - For further details, please review:

https://alpha.sosovalue.xyz/trade/ICP-USDT-BINANCE

1)What is ICP?

The Internet Computer(ICP) is a decentralized, secure, and cost-effective blockchain network designed to extend the functionality of the Internet, potentially running decentralized versions of major applications like Uber, eBay, and Facebook. It aims to address scalability issues in blockchain technology without compromising security or decentralization, positioning itself against rivals like Ethereum and EOS

2)Which sector does ICP belong to?

The Internet Computer (ICP) belongs to Layer 1 sector, specifically within the category of decentralized blockchain networks. It targets the cloud computing market, seeking to reduce reliance on centralized server farms.

• As of 2023, the Layer 1 blockchain sector has seen significant development and diversification. Initially, scalability was a major challenge for Layer 1 blockchains like Bitcoin, characterized by limited transaction throughput and high fees. However, recent advancements in consensus mechanisms, such as Proof-of-Stake (PoS) and sharding, have addressed these issues. Platforms like Ethereum 2.0 and Polkadot have greatly improved scalability, processing a higher number of transactions per second and reducing energy consumption.
• Decentralization is another key aspect of Layer 1 blockchain evolution. Unlike traditional systems, these blockchains distribute control across a vast network of nodes, enhancing security, censorship resistance, and fostering a more democratic ecosystem. This shift has made Layer 1 blockchains ideal for trustless interactions and preserving data integrity.
• The current Layer 1 landscape is also characterized by the growing diversity of its ecosystems. Developers are now building a wide array of dApps on these platforms, leveraging their security and scalability. This has led to the creation of various use cases, ranging from finance and supply chain management to social media and gaming, expanding blockchain adoption.
• Furthermore, the focus on interoperability in Layer 1 blockchains is noteworthy. This feature allows different blockchain networks to communicate and share data seamlessly, promoting collaboration and facilitating the movement of assets between blockchains. This interoperability is crucial for creating a more connected and versatile blockchain ecosystem.

3)What is tokenomics of ICP (includes allocation and supply schedule)?

Token ICP was launched in May 2020. The initial supply is 496 million, the current circulation is 449 million, the circulation accounts for 75%, the market value is 2.01 billion US dollars, and the FDV is 2.32 billion US dollars. The token has decreased 100 times since its launch

Token Allocation

The initial token allocation for the Internet Computer (ICP) at its Genesis launch was as follows, totaling 496,213,709 ICP tokens:

• Early Contributors: 44,575,228 ICP (9.50% of total supply)
• Seed Donors: 115,986,694 ICP (24.72%)
• Strategic: 32,845,140 ICP (7.00%)
• Presale: 23,295,828 ICP (4.96%)
• Strategic Partnerships: 17,795,770 ICP (3.79%)
• Community Airdrop: 3,763,448 ICP (0.80%)
• Initial Community: 2,242,179 ICP (0.48%)
• Node Providers: 1,050,000 ICP (0.22%)
• Internet Computer Association (ICA): 20,000,000 ICP (4.26%)
• Team Members: 84,480,829 ICP (18.00%)
• Advisors: 11,239,705 ICP (2.40%)
• DFINITY Foundation: 111,938,888 ICP (23.86%)

Token Use Cases and Allocation

• Node Provider Rewards: Node providers receive ICP rewards for offering compute/storage infrastructure. These rewards are paid in ICP tokens, which are minted new, leading to inflation. The rewards depend on the quality of service and the geographical location of the nodes.
• Staking for Governance (Neurons): ICP token holders can stake their tokens to create Neurons, securing voting rights in the Internet Computer's on-chain open governance system, the Network Nervous System (NNS). This system allows neuron holders to vote on various proposals and earn rewards for their participation, distributed as maturity that can later be converted into ICP.
• Fuel for Computation/Storage: ICP tokens are burned to generate "cycles" that fuel smart contract computations, akin to "gas" in Ethereum. However, unlike Ethereum's "user pays" model, the Internet Computer uses a "smart contract pays" model, where contracts are pre-charged with cycles, freeing users from transaction fees. Burning ICP for cycles leads to deflation.

Token Supply and Management

• Total Supply: The total supply of ICP is variable, affected by both inflationary and deflationary mechanisms. As of November 2023, the total supply is 509.9 million ICP.
• Circulating Supply: The circulating supply includes all tokens except the non-staked ones owned by the DFINITY Foundation. As of November 2023, the circulating supply is 449.5 million ICP, which is 88.2% of the total supply.
• Staked ICP: This includes tokens locked or dissolving in neurons that are earning rewards. The staked ICP as of November 2023 is 247.7 million, representing 48.6% of the total supply, with significant portions locked for long durations.

Inflationary and Deflationary Mechanisms

• Inflation: The Network Nervous System (NNS) mints ICP tokens for voting rewards and node provider rewards. The allocation for voting rewards is designed to encourage a high staking rate and decreases over time.
• Deflation: ICP tokens are burned for several reasons: to mint cycles for compute/storage, for transaction fees, and for failed NNS proposal fees. This burning mechanism introduces deflation into the system.

4)What about the team and the investors of ICP?

Team Behind ICP

• The Internet Computer project was founded in October 2016 by Dominic Williams, a serial entrepreneur with a history in crypto and startups since the 2010s. Williams is known for creating "Fight My Monster," the fastest-growing online kids' game in Europe in 2012.
• The project is developed and managed by Dfinity, a not-for-profit organization based in Zug, Switzerland. Dominic Williams is the CEO and chief scientist of Dfinity. He ideated the Internet Computer Protocol (ICP) after conducting extensive research into blockchain technologies from 2014 to 2015.
• The Dfinity team is described as highly experienced, with a focus on building a decentralized “internet computer” to compete with centralized cloud computing giants.

Funding History

• By the end of 2018, the project had raised more than $100 million. A significant funding round occurred in August 2018, where Dfinity announced raising $102 million from accredited investors and venture capital firms.
• In May 2020, the Dfinity Foundation announced a $200 million fund to attract developers to build on the Internet Computer.
• The Internet Computer's alpha mainnet was launched in December 2020, and the ICP tokens became available on exchanges in May 2021. The price of Internet Computer during the token sale, which started on February 1, 2017, and lasted until February 28, 2017, was $0.03 per ICP.

5)What is the development history of ICP?

List all important events and milestones in the development process of ICP.

Significant Milestones in ICP's Development（updated to 2021）

• Pre-Launch Milestones: Prior to its public launch, the Internet Computer project underwent several developmental phases, marked by milestones named Copper, Bronze, Tungsten, Sodium, and Mercury. These phases cumulatively led to the creation of the Internet Computer's mainnet.
• Mercury Alpha Mainnet: On December 18, 2020, the Mercury Alpha Mainnet was established. This was a significant step towards decentralization, featuring "node machines" operated by independent parties worldwide. These machines were placed under the control of the Network Nervous System (NNS), a key governance mechanism for the Internet Computer.
• Mercury Beta Mainnet and Genesis: Following the Mercury Alpha Mainnet, the project advanced to the Mercury Beta Mainnet stage, culminating in the Genesis event. This was the final phase before the public launch of the Internet Computer, marking a pivotal moment in its development.

Major Achievements Post-Launch

• After its launch in May 2021, the Internet Computer has achieved several key milestones:
• Deployment of Motoko Smart Contract Language: Motoko is a programming language tailored for smart contracts on the Internet Computer, designed to harness its unique blockchain features.
• Chain Key Cryptography: A breakthrough in cryptography that enables the Internet Computer to scale to millions of nodes.
• Network Nervous System (NNS) Implementation: The NNS functions as the decentralized governance system for the Internet Computer, allowing stakeholders to participate in decision-making through a liquid democracy model.
• Noninteractive Distributed Key Generation (NIDKG): This cryptographic protocol is essential for distributed key sharing among nodes in a subnet blockchain.
• Internet Identity System: A novel cryptographic authentication system that enhances security and privacy for users on the Internet Computer.

Internet Computer Consensus Protocol: A new consensus mechanism that ensures uniformity across nodes in subnet blockchains.

6)What is the progress and future roadmap of it?

Future Roadmap and Developments The Internet Computer has laid out an ambitious 20-year roadmap, envisioning significant advancements and societal impacts:

• In 5 Years: The Internet Computer is expected to be well-known in tech circles, with developers and entrepreneurs increasingly choosing it over traditional IT providers. Educational institutions are anticipated to begin teaching Motoko, the Internet Computer’s native programming language.
• In 10 Years: The aim is to establish the Internet Computer as the primary computing platform for the open internet, widely used for building services and systems.
• In 20 Years: The Internet Computer aspires to surpass the traditional proprietary ecosystem of today’s Big Tech companies. It aims to host crucial information infrastructure, services, and systems on its blockchain network, significantly influencing society's digital landscape.

7)List all important links related to ICP

Genesis Event and Milestones:

https://dfinity.org/mercury

Major Roadmap Achievements:

https://internetcomputer.org/roadmap

20-Year Future Roadmap:

https://internetcomputer.academy/20-year-roadmap

8)Bullishness index for this token from the perspective of token valuation and future potential from Chatgpt 4

The valuation and future prospects of Internet Computer (ICP) are subject to various factors, including market trends, technological developments, and broader economic conditions. As of the latest data, the price of ICP is about $4.563, with a market capitalization of around $1.83 billion. The cryptocurrency's market dominance stands at 0.13%, and it holds the 20th position in the Layer 1 sector based on market capitalization. The circulating supply of ICP is approximately 449.70 million out of a maximum supply of 488.51 million, with a yearly supply inflation rate of 63.98%.

Future Price Predictions for ICP

• 2023 Forecast: ICP's price is expected to peak at around $5.20, with a potential lower limit of about $4.73 and an average market price of approximately $4.96.
• 2024 Forecast: The price of ICP could potentially reach an upper limit of $8.19, with an average projected price of around $7.07.
• 2025 Forecast: Analysis suggests a peak value of $11.57 for ICP, with a projected lower limit of about $9.22 and an average value of approximately $9.50.
• 2026 Forecast: Predictions indicate a substantial increase, with a potential peak price of $16.19 and an average market value of around $14.48.
• 2027 Forecast: ICP might reach a maximum price of $24.61, with an average price of approximately $21.25.
• 2028 to 2032 Forecasts: Projections for these years suggest significant growth, with ICP potentially reaching $36.19 in 2028, $54.26 in 2029, $73.74 in 2030, $106.57 in 2031, and $150.64 in 2032.
• CoinCodex's Prognostication: CoinCodex predicts a 9.50% price increase, reaching $4.92 by December 3, 2023. Their forecast indicates a neutral sentiment with potential growth in the future.
• Wallet Investor’s Analysis: They suggest a depreciation in the value of ICP, considering it a high-risk and potentially unfavorable investment option, with a projected price of around $0.183 by year-end.
• Digital Coin Price Analysis: This analysis expects a long-term increase in ICP's value, with the price potentially surpassing $10 by the end of the current year and reaching around $23.43 in 2026.