One of the hottest topics in the blockchain industry these days is ICP. It is attracting a lot of attention with its innovative idea of ""making the Internet into a computer.""
Today, I will explain this amazing technology step by step so that even those who are hearing about it for the first time can easily understand it. Let's go into the world of ICP together. ✨
What is ICP (Internet Computer) Coin?
ICP is a truly innovative blockchain platform developed by the DFINITY Foundation. Simply put, it started with the idea of ""making the entire Internet into one giant computer.""
While existing blockchains mainly focused on financial transactions or simple smart contracts, ICP is on a completely different level. It allows websites, applications, and even social media to operate in a completely decentralized environment.
In fact, several dApps are already operating on the ICP network. Representative examples include OpenChat (decentralized messenger), DSCVR (decentralized social platform), and Distrikt (decentralized social network).
- Web speed: Unlike existing blockchains, it runs at the same speed as the web
- Unlimited scalability: The network becomes more powerful as it grows
- Complete decentralization: Web services can be operated without AWS or Google Cloud
- Developer-friendly: Supports existing web development languages (JavaScript, TypeScript)
ICP's exciting history and development
ICP's story dates back to 2016, when the Swiss-based DFINITY Foundation was founded. The founder, Dominic Williams, was a computer scientist with a bold vision to ""reinvent the internet.""
There were a lot of challenges in the early stages of development. Existing blockchain technology was too slow and limited to run web applications. So the DFINITY team developed a completely new consensus algorithm, 'Threshold Relay'.
In 2018, the alpha mainnet was launched, and in 2019, the beta version was released. And finally, on May 10, 2021, the ICP mainnet 'Genesis' was officially launched amidst the world's attention!
At the time of launch, the ICP token soared to $700, ranking 4th in the world's cryptocurrency market cap. Of course, there have been some adjustments since then, but the technical side is steadily improving.
• 2016: DFINITY Foundation established
• 2018: $120 million in total investment raised
• 2021: Mainnet launch and token listing
• 2022: Added Bitcoin integration
• 2023: Announced AI integration
• 2024: Continued to add improved performance and new features
How does ICP work?
ICP works in a really cool way! It works in a completely different way than existing blockchains.
Subnet Structure: The ICP network is made up of several subnets. Each subnet operates independently but can communicate with each other, similar to how various websites on the Internet are connected.
Canisters: Smart contracts in ICP are called 'canisters'. These canisters work like regular web applications, but they are completely decentralized. It's really innovative!
Chain Key Encryption: This is a unique technology of ICP that allows direct interaction with other blockchains such as Bitcoin or Ethereum. Without a bridge or wrapping token!
- Speed: Transactions completed in under 2 seconds (13 seconds for Ethereum vs. 2 seconds for ICP)
- Cost: Transaction fees are nearly free
- Storage: Unlimited data storage on-chain
- Interoperability: Native integration with other blockchains
What's most impressive about ICP is that you can leverage your existing web development knowledge to build websites. If you know HTML, CSS, and JavaScript, you can create an ICP dApp right away!
ICP's diverse uses and infinite possibilities
ICP's potential is truly endless! Innovative projects are already emerging in various fields.
Social Media Innovation: OpenChat is an ICP-based decentralized messenger. It can be used like Telegram or KakaoTalk, but it is completely decentralized, so there is no need to worry about censorship or server downtime. It's truly the future!
Creator Economy: On the DSCVR platform, creators can directly earn money from their content. You can communicate directly with fans and receive support without a middleman.
Gaming Industry: With ICP, you can create completely on-chain games. Since game data is stored on the blockchain, the game can continue to exist even if the game company stops its service.
DeFi and Finance: DEXs (decentralized exchanges) such as Sonic and ICPSwap are actively operating. You can trade much faster and with lower fees than Ethereum.
- OpenChat: Decentralized messenger (50,000+ monthly active users)
- DSCVR: Web3 social media platform
- Distrikt: Decentralized social network
- ICPSwap: ICP native DEX
- Entrepot: NFT marketplace
- NNS dApp: Network governance system
In particular, the combination with AI is also attracting attention recently. As AI models can be directly executed on the ICP network, decentralized AI services are emerging!
Buying ICP Coins - Complete Guide to Exchanges
If you want to buy ICP coins, there are many options! You can trade them on major domestic and international exchanges.
Domestic Exchanges:
Upbit allows direct KRW purchases with the ICP/KRW pair. It boasts the largest trading volume among domestic exchanges. You can also trade on Bithumb and Korbit.
Overseas Exchanges:
Binance has the largest ICP trading volume in the world. It is also actively traded on Coinbase, Kraken, and Huobi.
• Beginners: Upbit or Coinbase are recommended (easy to use)
• Large Transactions: Binance is recommended (high liquidity)
• Long-term Storage: Transfer to a personal wallet after purchase is recommended
• Fee Comparison: Please check the fees as they vary by exchange!
Notes on Trading:
ICP is more volatile than other coins. In particular, it tends to react sensitively to the overall market sentiment and technology update news. Therefore, it is important to understand the market situation well and enter when trading.
An Active ICP Community and Communication Platform
The ICP community is really active and passionate! Developers and investors from all over the world gather together to share various information.
Must follow @dfinity!
Real-time update information
DFINITY official server
Real-time communication with developers
ICP Korea group
Exchanging information in Korean
r/dfinity subreddit
In-depth discussions and analysis
Especially DFINITY's official The forum (forum.dfinity.org) is a real treasure trove. It covers everything from technical questions to governance proposals. If English is too much for you, there is also an active Korean Telegram group, so join in!
Benefits of Community Participation:
Participating in the ICP community is not just about getting information. It’s about actually participating in the network governance. By staking your ICP tokens, you can vote on the future of the network through the Network Nervous System (NNS). It’s really democratic!
- Check out the FAQ or documentation before asking a question
- If you're a developer, contribute to open source projects on GitHub
- Participate in regular AMA (Ask Me Anything) sessions
- Beware of fake information or scams, and check the official channels for information
ICP Wallet Complete Guide - Everything You Need to Know About Safe Storage
It's really important to keep your ICP safe! Luckily, ICP offers a variety of wallet options.
NNS dApp (Recommended!):
This is the official wallet developed directly by DFINITY. Beyond a simple wallet, you can participate in network governance and stake ICP to earn rewards. You can use it right away at nns.ic0.app.
Internet Identity:
ICP's innovative authentication system. You can safely log in with biometric authentication (fingerprint, facial recognition) without a password or seed phrase. It's truly futuristic!
Hardware Wallet:
Ledger hardware wallets also support ICP. Hardware wallets are the safest when storing large amounts of money.
• Never store your seed phrase online
• Do not connect your wallet to suspicious dApps
• Update your wallet software regularly
• Divide large amounts into multiple wallets
• Beware of phishing sites and check URLs carefully
Earning by staking:
One of the big draws of ICP is staking! You can lock up your ICP in the NNS dApp for up to 8 years and receive 8-28% annual rewards depending on the period. Of course, you cannot withdraw during the lockup period, so decide carefully.
Everything you need to know when investing in ICP
If you are considering investing in ICP, here are some important points to keep in mind!
ICP's unique characteristics:
ICP has some unique characteristics compared to other cryptocurrencies. The tokens do not simply act as currency, but also act as 'gas' to purchase computing power on the network. So as network usage increases, token demand naturally increases.
Understanding Market Volatility:
ICP experienced a sharp decline after reaching $700 when it was launched in 2021. This was due to the initial launch and the adjustment of the overall market, but it is still evolving technologically. Therefore, it is better to focus on long-term technological development rather than short-term price fluctuations.
1. Understanding Token Economics: ICP has a complex structure where inflation and deflation occur simultaneously
2. Technology Risk: It is still a new technology, so unexpected problems may arise
3. Competitive Environment: Competition with existing platforms such as Ethereum and Solana is fierce
4. Regulatory Risk: It may be affected by changes in cryptocurrency regulations worldwide
Smart Investment Strategy:
When investing in ICP, I recommend the ""Dollar Cost Averaging (DCA)"" strategy. Instead of investing a large amount at once, invest a certain amount every month. This way, you can reduce the risk of price fluctuations.
Also, rather than investing only in ICP, limit it to 5-15% of your portfolio, and the rest to Bitcoin