The Internet Computer is a layer one protocol designed to develop a decentralized public network that enables the large-scale operation of smart contracts. The project aims to become an internet computer, providing the functionalities of a public internet and allowing backend software to be hosted on the web.
ICP is the native functional token of the Internet Computer, used for protocol governance and network transactions.
Project Introduction
Dfinity is a decentralized network design project. The team has developed a computer network protocol, the Internet Computer Protocol (ICP), which, through the ICP protocol, enables developers to establish a virtual blockchain computer network using peer-to-peer network computing resources. On this network, existing software and smart contracts can be deployed with the characteristics of blockchain traceability, immutability, and decentralization.
The DFINITY team has been dedicated to blockchain foundational technology research since 2015, aiming to develop a secure and powerful next-generation blockchain global computer based on blockchain. DFINITY is building a new decentralized public cloud computing service. This service requires the creation of a new blockchain mechanism similar to Ethereum but with stronger performance, greater capacity, and better compatibility. Business applications running on this mechanism will not experience downtime and do not require complex components like databases or systems, significantly reducing business application costs (approximately 90%) and maintenance.
The DFINITY community brings people and organizations together to learn and collaborate on products, helping to manage the next generation of internet software and services. The Internet Computer enables developers to challenge internet monopolies and return the internet to its roots as a free and open platform. We are committed to connecting those who share the same vision through events, content, and discussions.
Our mission is to build the "Internet Computer" to reinvent the internet as a computer carrying secure software with superpowers. The Internet Computer is a new technology stack that is unhackable, fast, and scalable to billions of users globally, supporting a new type of autonomous software that could reverse Big Techs monopoly on the internet. DFINITY was founded by Dominic Williams in 2016.
The DFINITY Foundation is a non-profit organization located in Zurich, Switzerland, overseeing research centers in Palo Alto, San Francisco, and Zurich.
Project Highlights
Dfinity aims to create a blockchain computing system with unlimited computing power and infinite scalability through technologies such as the Probabilistic Slot Protocol, Threshold Relay, UsCID (Unique State Replication ID), and Blockchain Nervous System. By expanding and strengthening the EVM ecosystem, it provides platforms with different characteristics for applications, conceptually falling within the scope of "Ethereum competitors."
Project Progress
Dominic Williams outlined DFINITYs roadmap: the foundation was established in Switzerland in 2015, and by the end of 2019, the staff count would grow from 75 to 150. The first public testnet would launch at the end of 2019, with the mainnet potentially launching in the first half of 2020.
When investment firms like A16Z took notice of DFINITY, the hype around blockchain was nearing its end. The founder even stated, "We are more than just blockchain." DFINITYs system resembles a new internet protocol. With years of experience in the field, Dominic can assemble top talent and attract internet giants. Confidently, he said, "We have the best team in the field."
ICP Token
ICP is the native utility token of the network, playing three key roles:
1. Facilitating Network Governance
ICP tokens can be locked to create neurons, participating in network governance through voting, which earns ICP rewards for issuance.
2. Producing Cycles for Computation
ICP can be converted into "cycles," acting as a gas token to fuel computation, burning upon use. The NNS dynamically adjusts the ICP-to-cycles conversion ratio to ensure that network users can always create new cycles at nearly stable real-world costs, making the cost of obtaining gas stable and predictable.
3. Rewarding Participants
The network mints new ICPs to reward those performing critical work, enabling the network to function, including providing "voting rewards" to neurons participating in votes and "node rewards" to node operators.
Calculating Voting Rewards
Projections indicate that 90% of the total ICP supply might be locked into neurons. Regardless of the current lock-up rate, a fixed number of ICP issuance rewards will be distributed, increasing participants rewards until the participation rate reaches 90%, assuming the market convinces those currently uninvolved to participate.
We estimate the required return as a percentage of the current supply and allow this percentage to decrease over time, accounting for the reduced risk of locked balances declining as the network stabilizes. Initially, the issuance might be 10% of the total supply (annually), decreasing over time until it reaches 5% after eight years.
Algorithm
We derive the maximum number of ICPs that can be minted and distributed from the current ICP supply and the number of days since genesis. Initially, this equals 10% of the ICP supply divided by the number of days in a year. Over eight years, this figure decreases to 5%. Note that, due to the ICP supply possibly growing or declining during this period, the voting rewards may not halve in practice.
First-year issuance rate is 10%
Eighth-year issuance rate post-genesis is 5%, remaining constant thereafter
Issuance rate is a quadratic function of time
Related Links:
https://www.528btc.com/bk/2019102757762.html
https://www.chainnews.com/articles/544356646053.htm
