What is Internet Computer (ICP)?
kwa LCX Team · August 22, 2023
The Internet Computer was created by ICP, the most advanced network protocol ever devised. It enables people to build Web3 services and enterprise systems directly on a public decentralized network, which scales even to hosting social networks and media streaming. Hosted services are tamperproof, don’t need firewalls, support Web3 functionality, and can trustlessly interact with the outside world.
The Internet Computer Protocol blockchain network aims to bring greater efficiency, speed, and decentralization to computation and data storage. The project aims to address shortcomings associated with the traditional Internet, such as monopolization of services, poor system security, and misuse of personal data.
Three features differentiate the Internet Computer from other blockchain networks:
Anyone can create a decentralized application (dApp) on its blockchain platform thanks to a simplified user interface.
ICP runs on a decentralized network with dedicated hardware established by independent parties rather than a cloud maintained by centralized data servers.
The blockchain processes transactions quickly, setting it apart from other cryptocurrencies that may take 30 minutes or more to complete transactions.
Trade $ICP at LCX Exchange
Sign InWhat is an ICP Token?
The ICP utility token (formerly known as “DFN”) is the primary mechanism that allows the broader internet community to participate in the governance of the Internet Computer blockchain network. ICP can also be dissolved and converted into cycles, which are then used to run websites and dapps as well as power computations on the Internet Computer via canister smart contracts.
The ICP token plays a number of roles on the Internet Computer. Firstly, as a governance token, it can be staked to exercise those governance rights. As a utility token, it can be burned to obtain ‘cycles‘ which serve as gas for computation and storage in canister smart contracts. It can also be minted to reward ‘node machine‘ providers for providing that compute and storage.
In addition to these core uses, ICP tokens can be used to participate in decentralization swaps to become a co-owner of an SNS DAO, and when using many smart contract services built on the Internet Computer such as registries, marketplaces, and exchanges. The ICP token implements the ICRC-1 standard.
What Is the Utility of ICP Token?
- Participate in governance
- Burn for cycles
- Participate in decentralization swaps
- Reward node machine providers
Ways to Use ICP Tokens
- Participate in governance
The Internet Computer Protocol is run by the NNS, the largest DAO managing an L1 blockchain. ICP token holders can participate in network governance simply by staking tokens in neurons and locking them with a specified dissolve delay (time to unlock). A neuron with a dissolve delay greater than 6 months can vote on governance proposals and earn rewards. ICP neuron holders can also submit proposals to make changes to the protocol. This open and autonomous governance system runs 100% on chain, and currently holds over 250 million locked ICP.
- Burn for cycles
Unlike other smart contract blockchains, the Internet Computer runs on a “Reverse Gas Model”. This means computation and storage costs are paid for by developers, and developers are responsible for topping up smart contracts with cycles to fuel the compute power and storage of their dapps. The Reverse Gas Model allows users to interact with dapps on the Internet Computer without tokens, and as seamlessly as they would on any Web2 application.
Where Can You Buy ICP?
You can buy, trade, and deposit ICP tokens at the LCX exchange. The trading pairs for ICP tokens are: ICP/EUR and ICP/LCX
