What is Internet Computer (ICP)?

Internet Computer (ICP) is a decentralized blockchain network that reimagines how applications, services, and websites are built and run on the internet. Instead of relying on traditional cloud infrastructure controlled by big tech, ICP enables developers to build directly on the blockchain—creating secure, tamper-proof, and censorship-resistant systems.

Powered by its native utility token, ICP, the Internet Computer allows users to pay for computation, participate in governance, and incentivize node providers. Developed by the DFINITY Foundation, this protocol represents a bold leap toward building a truly decentralized internet aims to improve speed, scalability, and resilience compared to earlier blockchains.

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The Internet Computer was developed by the DFINITY Foundation, founded by cryptographer Dominic Williams. After years of research and development, the project launched in May 2021 as one of the most ambitious Layer 1 protocols in the space. Unlike conventional blockchains, the Internet Computer is designed to run web-scale applications entirely on-chain. Instead of simply storing transactions, ICP can host full-stack software—from smart contracts to web interfaces—all on a decentralized protocol. This new paradigm attracted significant backing during its development, making it one of the most notable launches in blockchain history. Today, ICP is powering a wide range of use cases, including decentralized social media, enterprise tools, NFT platforms, and even AI applications, all without relying on traditional centralized servers. 

Internet Computer is a Layer 1 blockchain that serves as a decentralized cloud platform. It allows developers to deploy "canisters" (advanced smart contracts) that handle everything from backend logic to front-end interfaces. Here's what sets ICP apart:

• Web-Scale Performance: ICP can process transactions in milliseconds and finalize them in under 2 seconds—matching the speed and UX of the traditional internet, with the security of a blockchain.
• Chain Key Technology: This novel cryptographic system enables the Internet Computer to run efficiently across independent data centers worldwide. It allows seamless upgrades, fast consensus, and chain interoperability without user downloads or browser extensions.
• Fully On-Chain Apps: Applications built on ICP are hosted entirely on the blockchain, from data storage to user authentication. There's no need for centralized infrastructure, creating an entirely Web3-native experience.
• Decentralized Governance: ICP token holders participate in protocol governance through the Network Nervous System (NNS). Users can stake tokens to propose and vote on upgrades, influencing the network’s future directly. 

Internet Computer redefines smart contract architecture by combining compute and storage on a single layer. Here's how it functions:

• Canisters (Smart Contracts): Canisters are autonomous, upgradeable smart contracts that store code and data. They power decentralized applications and services running on the Internet Computer.
• Data Centers & Node Providers: ICP runs on independent data centers called node providers. These contributors host the infrastructure needed to support canister execution and receive rewards in ICP.
• Reverse Gas Model: Unlike Ethereum, where users pay for transactions, ICP flips the model. Developers preload canisters with "cycles" (a computational resource derived from ICP), making the user experience frictionless and scalable.
• Integration with Traditional Web: ICP can serve web content directly to browsers, allowing users to interact with decentralized apps without plugins or intermediaries. 

The ICP token fuels the Internet Computer ecosystem. Its primary use cases include:

• Computation and Storage Costs: ICP is converted into "cycles" used to power canisters and run applications.
• Governance Participation: Staked ICP gives users the ability to vote on network proposals via the NNS.
• Node Provider Incentives: ICP is awarded to those operating the infrastructure that supports the network.
• dApp Monetization and Transactions: Developers and users transact within apps using ICP as the native medium of exchange. 

• Internet Computer (ICP) is a decentralized protocol designed to replace traditional cloud services and redefine internet infrastructure.
• It enables fully on-chain apps that serve user interfaces, store data, and execute smart contract logic without external dependencies.
• ICP tokens power everything from governance and computation to network rewards and on-chain app hosting.
• With Chain Key Technology, a reverse gas model, and developer-friendly tools, ICP provides a foundation for a decentralized, open, and efficient Web3. 

Disclaimer: This article is not intended to provide investment, legal, accounting, tax, or any other advice and should not be relied on in that or any other regard. The information contained herein is for informational purposes only and is not to be construed as an offer or solicitation for the sale or purchase of cryptocurrencies or otherwise. Ndax is a member of the Canadian Investor Protection Fund (CIPF). Please refer to the CIPF for coverage qualification criteria.