Internet Computer Price Prediction: What will ICP be worth in 2030?

Internet Computer (IC) is a blockchain-based computing platform developed by the DFINITY Foundation. The foundation was founded by Dominic Williams, who is also the Chief Scientist of DFINITY.

The Internet Computer platform aims to provide a decentralized and more efficient alternative to traditional cloud computing by enabling the creation and deployment of dApps directly on its blockchain. It offers features such as smart contract functionality, scalability, and interoperability with other blockchains.

Development of the Internet Computer began in 2016, and the project was officially launched in May 2021 with the release of its mainnet. The launch marked a significant milestone in the development of decentralized computing, as it introduced a new blockchain-based platform designed to host and run dApps directly on the internet without the need for traditional hosting services.

The Internet Computer platform utilizes a novel protocol called the Internet Computer Protocol (ICP), which enables secure and efficient decentralized computation. It aims to provide a scalable, secure, and interoperable environment for building and deploying a wide range of decentralized applications.

The consensus mechanism used by the Internet Computer is called "Threshold Relay." It's a novel approach to achieving consensus in decentralized networks, particularly designed to handle the unique challenges of blockchain systems.

Threshold Relay is a variation of the Proof of Stake (PoS) consensus algorithm. In traditional PoS systems, participants (stakeholders) are chosen to create new blocks based on the amount of cryptocurrency they hold and are willing to "stake" as collateral. However, in Threshold Relay, participants are selected based on a random beacon mechanism rather than their stake.

Here's how Threshold Relay works in the context of the Internet Computer:

• <strong style="background-color: transparent;">Random Beacon: The Internet Computer network generates randomness through a decentralized random beacon mechanism. This randomness is used to select participants for the consensus process.
• Threshold Relay: Participants, known as "replicas," are selected from a pool of eligible nodes based on the random beacon. These replicas are responsible for collectively determining the state of the network and agreeing on the validity of transactions.
• Threshold Cryptography: To achieve consensus, replicas engage in cryptographic protocols based on threshold cryptography. This involves reaching an agreement on the state of the network by collectively signing transactions and blocks.
• BLS Signature Scheme: The Internet Computer uses the Boneh-Lynn-Shacham (BLS) signature scheme, a type of cryptographic signature that enables efficient aggregation of signatures from multiple participants. This helps streamline the consensus process and improve scalability.
• Security and Resilience: Threshold Relay is designed to be highly secure and resilient against various attacks, including Sybil attacks, where a single entity creates multiple fake identities to manipulate the network.

The Internet Computer offers a range of utilities and functionalities, aiming to provide a decentralized and secure platform for building and deploying a variety of applications. In particular, The Internet Computer allows developers to host and run decentralized applications (dApps) directly on its blockchain network, eliminating the need for traditional centralized hosting services. This enables censorship-resistant and tamper-proof applications.

The Internet Computer is designed to scale horizontally, meaning it can handle a large number of transactions and applications concurrently without sacrificing performance. This scalability is achieved through its unique consensus mechanism and architecture.

The platform aims to be interoperable with other blockchain networks, allowing for seamless communication and data exchange between different decentralized systems. This interoperability enhances the utility and flexibility of applications built on the Internet Computer.

The Internet Computer provides tools and protocols for managing decentralized identities, allowing users to maintain control over their personal data and digital identities without relying on centralized authorities.

The Internet Computer offers decentralized storage solutions, enabling developers to store and manage data securely on the blockchain or through decentralized storage networks integrated with the platform.

Developers can build decentralized finance applications on the Internet Computer platform, leveraging smart contracts and programmable money to create various financial services such as lending, borrowing, trading, and asset management.

The Internet Computer network operates through a system of "subnet blockchains," each contributing additional capacity to the network for hosting smart contracts, computations, and data. Despite their presence, these subnets remain invisible to both the hosted smart contracts and users. This invisibility is achieved by consolidating them into a single logical blockchain through the use of "chain key crypto."

Chain key crypto, unique to the Internet Computer, assigns public "chain keys" to subnet blockchains and the overall Internet Computer blockchain. These blockchains cryptographically sign all interactions, which can be authenticated using their chain keys. Valid signatures ensure the integrity of interactions and the proper functioning of the blockchains, all without necessitating the download and verification of transaction blocks.

Chain key crypto enables the Internet Computer to merge its subnet blockchains seamlessly, allowing for limitless scalability. Moreover, it facilitates additional functionalities such as processing HTTP requests and delivering interactive web experiences directly to end-users through smart contracts. This approach enhances security as smart contracts can sign the content they serve, ensuring its validity before user access, thus bolstering user safety.

Moreover, chain key crypto introduces the "Chain Key TX" functionality, empowering smart contract developers to create signed transactions that operate on other blockchains. For instance, developers can generate Bitcoin addresses and conduct Bitcoin transactions directly on the Bitcoin ledger without relying on potentially insecure "bridge" services. This functionality opens avenues for native Bitcoin DeFi development.

Additionally, the Internet Computer offers distinctive features like HTTP outcalls, enabling smart contracts to securely query external systems over the web via its network consensus system. This capability allows smart contract software to access data such as cryptocurrency price feeds without relying on trusted Oracle services.

The network's governance and management are overseen by a master subnet, governed by an advanced permissionless DAO known as the Network Nervous System (NNS). The NNS instructs node machines on network structuring, subnet management, and the formation of new subnets. Node authentication is ensured through chain key signatures, maintaining stability and security within the network.

Developers on the Internet Computer leverage "canister" smart contracts, which bundle WebAssembly bytecode and persistent memory pages. Canisters operate as autonomous units, interacting via message passing, enabling parallel execution of smart contracts, and facilitating the development of various applications and functionalities. Rust and Motoko are the primary languages used for smart contract development, with Motoko specifically tailored for the Internet Computer platform by DFINITY.

The launch of the Internet Computer platform was accompanied by the release of its native cryptocurrency, ICP. ICP serves as the native utility token of the Internet Computer blockchain, enabling various functionalities within the network, such as governance, transaction fees, and smart contract execution. It plays a crucial role in the operation and development of decentralized applications (dApps) and services built on the Internet Computer platform.

ICP tokens can be used for staking, allowing users to participate in the network's security and earn rewards. Additionally, they are traded on various cryptocurrency exchanges, where users can buy, sell, and trade them like other digital assets.

The ICP tokens have a total supply of 515,359,417 ICP, and as of March 14, 2024, the circulating supply is 460,236,876 ICP.