At the moment, the internet we use every day is the so-called Web2 technology where most online services are owned by corporations. The basic idea behind the Internet Computer, a decentralized network (blockchain), is to create a new generation of the Internet with independent data centers. Basically, this is an attempt to build a global network where literally everyone can interact with different online applications and services without worrying about the security of their data. This is in keeping with the idea of Web3, a new version of the World Wide Web deprived of many drawbacks such as poor security of user data, monopolization of services and low reliability in general.
With the growing popularity of smart contracts, decentralized applications (dApps), NFT and metaverses, humanity is moving towards Web3, and platforms like the Internet Computer can accelerate this transition. Like almost any blockchain-based project, Internet Computer (ICP, good to trade it) has a native token used to facilitate the management of the platform and reward its participants (and therefore many crypto-enthusiasts are interested in ICP coin price prediction). The platform’s token is listed on many crypto exchanges and has attracted the attention of crypto enthusiasts looking to invest in a digital asset and profit from its ever-increasing price. In this article, we will talk about the features of the platform and ICP token, the importance of forecasting the price of digital assets, as well as give our predictions as to how ICP price (good to trade it) will change in the foreseeable future.
Internet Computer Protocol – Important Things to Consider
The main problem with today’s Internet is that it is highly centralized. Try any online service, whether it is a pizza ordering app or a cryptocurrency brokerage platform, and you will find that the source code is private and resides on a server or in a data center belonging to a specific organization. Suppose some node in the data center goes down. If that happens, large parts of the network could crash. Add to this the risks of application de-platforming and censorship, and you have the basic problems of today’s centralized Internet. Backed by the DFINITY Foundation, Internet Computer will solve the aforementioned and many other challenges. Launched in 2015, ICP has gone through several funding rounds, and by 2018 had raised around $200 million for the development and growth of the project (get ICP wallet). The main goal of the ICP is to encourage open and transparent software development (prediction says coin may reach new heights in future). In simple terms, the Internet Computer is a network of multiple blockchains that enables decentralization as well as faster and more efficient data processing and storage.
So, before we move on to Internet Computer price prediction, here are a few thoughts on this very promising project:
- ICP aims to build an efficient and productive blockchain network to successfully compete with other market players and ultimately roll out a new generation of a decentralized internet.
- The Internet Computer platform has a native token that performs service functions. First, the token provides voting rights to the holder, which simplifies the process of managing the network. Secondly, the token has a value (you can exchange ICP for other cryptocurrencies or to fiat money on crypto exchanges), so it is used to reward the ICP community members.
- The platform implements several innovative technologies including the Threshold Relay consensus mechanism and Chain Key technology.
- ICP token holders will be able to participate in the creation and management of the next generation Internet.
So, ICP’s native token plays a crucial role in maintaining and managing the system where it circulates. This distinguishes it from cryptocurrencies such as Bitcoin (good to trade it), which has value essentially only because its holders believed in it (and therefore many crypto-enthusiasts are interested in ICP coin price prediction).
Key Features of the Internet Computer Protocol
Like many other crypto projects, ICP (good to trade it) uses blockchain technology, which is a distributed ledger where all data is stored as records placed in blocks (prediction says coin may reach new heights in future). The blocks in the ledger are arranged one after the other to form a chain. However, Internet Computer uses multiple blockchains at the same time, thus providing even more decentralization, efficiency and performance. So, here are a few things that distinguish the Internet Computer network from other blockchain-based projects:
- Computing power in an ICP network is provided by dedicated hardware available from independent parties, as opposed to the usual centralized data centers with organization-specific computing equipment.
- The Internet Computer platform provides equal opportunities to create and host decentralized applications for each participant. One of the important advantages of ICP (good to trade it) is its simple and intuitive user interface.
- Transactions within the ICP network are processed almost instantaneously, significantly faster than Bitcoin, Ethereum and other projects where delays can be several tens of minutes (depending on the level of blockchain load).
Considering all of the above, the Internet Computer as an emerging technology has a great future. However, how is this reflected in the value of the ICP token and why you should get ICP wallet? Not all digital coins with real intrinsic value within the platform in which they operate show impressive growth. Below we look at some project details and move on to Internet Computer price prediction.
How the Internet Computer Works
In essence, the Internet Computer is a single platform for creating decentralized applications that utilize the processing power of devices (computers) connected to a single network. The creators of ICP have developed a unique network architecture comprising several layers. This architecture fully reflects the vision of what should be Web3, the Internet of a new generation. Below we have listed the main levels of the network architecture of Internet Computer with a brief description of each:
- Canisters. Representing blocks of secure software code, Canisters play the role of independent applications. Essentially, they are roughly the same as smart contracts on the Ethereum network. A containerization mechanism is used to separate functions and applications from the execution environment to ensure that they can be seamlessly deployed on the network.
- ICP nodes. These are subnets that host canisters, i.e. blocks with software logic ready for use.
- Data Centers. These are distributed computer networks that provide processing power to applications and space for data storage.
- Cycles. This is an internal monetary unit in an ICP network that is used as payment for allocated processing power. Since processing power is not free, developers have introduced Cycles as a payment method to ensure that the platform remains up and running. Cycles are destroyed as it is used in a similar way to how a combustion engine burns fuel.
- Network Nervous System. It is a special system for controlling, configuring and managing the ICP network.
- Neurons. Basically, these are locked tokens that are reserved for use in voting for any changes to the network. In other words, Neurons are ICP tokens reserved for voting on the network.
While we look at details such as network architecture, it is crucial for building a more accurate Internet Computer coin price forecast. After all, one of the important mistakes crypto investors make is just looking at how the price of a digital asset has changed historically, without going into the details of the project. By understanding the intrinsic value of the platform, you can build a more accurate ICP token price (prediction says coin may reach new heights in future) forecast.
Features of the Key Chain Technology
One of the problems associated with cryptocurrencies is the security of data stored on the network. While crypto positions itself as a more secure form of money protected by cryptographic methods, Bitcoin, Ethereum and many other tokens have repeatedly demonstrated that their security is not flawless. Internet Computer has introduced Key Chain, a new engine that runs smart contracts. It adds an extra layer of protection, providing more secure transactions within the ICP network. In simple words, Key Chain has been introduced to ensure the integrity and security of data sent between nodes of the network. Under the Key Chain concept, each node is assigned a unique identifier which is used as a digital signature for any piece of data sent by the node. Remarkably, unlike other cryptocurrencies where each wallet has a public key, the ICP network (get ICP wallet) has a single public key. And that key is used to verify digital signatures in messages sent by nodes. Thus, Key Chain offers a much simpler and at the same time more reliable mechanism for securing data transmission within the ICP network. Ultimately, higher reliability and security may – albeit indirectly – ensure a higher ICP token price (good to trade it) in the future (according to current analysis).
Understanding the Threshold Relay Consensus Mechanism
In the cryptocurrency world, the consensus mechanism plays an important role. If we look at crypto as a financial system, it differs from the traditional one in its decentralized nature. The decentralized nature means that there is no central authority in the network to monitor and control the operation of the system. Like other crypto projects, ICP (good to trade it) relies on decentralization. And that’s why for correct work of Internet Computer it needs some mechanism of provision of consensus for following rules of Internet Computer protocol and trustworthiness of all transactions. As stated above, ICP uses the Threshold Relay mechanism (prediction says coin may reach new heights in future), which is essentially a modified Proof of Stake (according to current analysis). The Threshold Relay includes 4 layers as outlined below:
- Identification. This level is available to all clients in the network. Registration is possible e.g. by depositing native platform tokens.
- Random Beacon. This layer generates random code that nodes use to select each other and group themselves for subsequent protocol tasks.
- Blockchain. This layer forms a blockchain network where nodes are grouped randomly based on the codes generated by the Random Beacon layer.
- Notary. This layer provides final assurance that the entire ICP network is operational.
In combination with the cryptographic signature technique and notarization method, Threshold Relay provides consensus on the Internet Computer network. A viable and reliable consensus mechanism is also important for both the crypto project and its native token. This means that there are no uncertainties in the network and there is a robust solution to the double-spending issue. Threshold Relay is a promising mechanism (analysis is needed) with a great future behind it, which positively affects the ICP token price.
Things That Make ICP a Unique Crypto Project
ICP offers canisters, i.e. blocks of secure programming code that form smart contracts. Canisters are individual units containing functions or applications. Web3 users will be able to interact with canisters with approximately the same experience as with Web2 services, i.e. the current Internet. Unlike Web2, however, all applications will be placed directly on the network without relying on a centralized infrastructure. In simple terms, the ICP protocol runs nodes that in turn organize subnets. The subnets host the nodes with which the end users interact. Notably, the end user will not be charged for the output of smart contracts or decentralized applications. The canisters already contain cycles that are used (burned) while the canisters are running. This Internet Computer network structure has several important advantages (according to expert analysis):
- ICP provides a low entry threshold for anyone wishing to use the services available on the network. For example, the end user does not have to be a native Internet Computer token holder or have any other cryptocurrency.
- Users get roughly the same experience as when interacting with Web2 services, which means that they do not need to invest their time to learn how decentralized platforms work.
- The data centers on the network provide computing power and receive ICP tokens as a reward for doing so.
Cycles within a network act as a computing resource. As they burn their ‘gas’, they are depleted and need to be replenished (as computing power is generated by computers that consume electricity, which in turn is not free of charge either). For the time being, the cost of each cycle is variable. However, the Internet Computer network will strive for orderliness and stability in terms of cycle cost.
The Differences Between ICP and Ethereum
The key difference between Ethereum and Internet Computer is that the former is more tied to a digital token that circulates on the network. Essentially, Ethereum is a decentralized financial system where most services are automated thanks to smart contracts. Most Ethereum dApps are in some way related to the movement of tokens within the network. As for the Internet Computer, this project has a much more ambitious goal of replacing the traditional Internet. While both Ethereum and ICP use smart contracts, the latter offers an improved version of them called canister. Ultra-scalability is a key advantage of canisters over the smart contracts used in the Ethereum network. There are also important differences between the two platforms in terms of speed and efficiency. The Ethereum platform, which still uses the PoW consensus mechanism, cannot offer the speed and cost-effectiveness of transactions as ICP does (good to trade it). Thanks to the innovations of Threshold Relay, transactions on the Internet Computer network are almost lightning-fast, with low fees.
Challenges ICP May Face
For a correct ICP price prediction, you need to know not only what the project representatives say about it (prediction says coin may reach new heights in future), but also about the possible problems it might face. If the set goals turn out to be unrealistic, the ICP price (cryptocurrency market prediction) can fall dramatically in the blink of an eye (according to expert analysis). The cryptocurrency world already knows many cases when promising projects turned out to be worthless and were launched just to raise money rather than to realize their goals. So, let’s start by taking a look at the main points mentioned in the ICP (prediction says coin may reach new heights in future) roadmap:
- Within 5 years, schools will have a subject dedicated to ICP as well as Motoko, the programming language in which it is written. It is expected to make great strides in terms of spreading the understanding of how the Internet Computer works (according to analysis).
- After 10 years, ICP will be able to catch up with and surpass the traditional Internet. In addition, the project will make a major contribution to the development and diffusion of decentralized financial systems.
- In 20 years, ICP and its proposed Web3 will be mainstream with more computing power (compared to that used for Web2) deployed to make it work.
As can be seen, the objectives in the roadmap are rather vague, with no specific description of the processes and mechanisms by which they will be achieved. Given that, the future of ICP (good to trade it) seems uncertain, even though the project itself – taking into account its global objective of implementing Web3 – seems very viable. Such a blurred roadmap does not bring a positive perspective to ICP price prediction. In addition, there are several other potential risks and problems associated with ICP implementation (according to cryptocurrency market prediction):
- High hardware requirements to provide the ICP network infrastructure. If the requirements are too high, only a few market players will be able to provide them, leading to centralization.
- The problem of posting inappropriate content. The centralized Internet uses a moderation mechanism to censor the content posted by ordinary users (at market now). However, in theory, even a decentralized system could create solutions capable of combating undesirable content.
- Internet Computer already has potential competitors in IPFS/Filecoin and Solid. If ICP loses to its competitors, the price of the token will drop significantly.
So, now that you know the project’s features, its benefits and potential problems, it’s time to take a closer look at its native token and how its price has changed over time.
Internet Computer Price Prediction
ICP is a native Internet Computer platform token that was listed on Coinbase on 10 May 2021. A little later, it was also listed by Huobi, OKEx and Binance. At the time of writing, the coin has a price of around $6.46 and a market cap of $1.65B. That said, the daily trading volume is only around $50 million. It is still a very young token that has been available for less than 1.5 years. Notably, at the time of market entry, it was priced at around $740 per coin, which is an impressive figure. However, after a short period of time, after a market adjustment, the ICP token (good to trade it) was trading at $250. By 3 June 2021, the price had fallen to $120 per coin. Over the following months, the price gradually fell with minor short-term increases.
ICP Price Prediction 2025
ICP token lost about 98% of its original value and is not in high demand right now. According to crypto experts, this drop in price is explained by the fact that insiders moved a huge number of tokens to cryptocurrency exchanges, thereby raising concerns among investors about possible dumping. However, the interest in the ICP tokens is still there, and it is mostly due to the strong fundamentals of the project, described above. To compile ICP price prediction, we referred to several sources, including WalletInvestor and DigitalCoinPrice. WalletInvestor gives a pessimistic forecast about the price of Internet Computer Coin (at market now), supposing that it will fall to $1/unit by 2025. As for DigitalCoinPrice, experts believe that we will soon see a bullish trend that will lead to a slight gradual increase in the value of the coin. Presumably, by 2030, the token could be worth around $40. Ultimately, the success of the Internet Computer and the value of the ICP token depend directly on how successfully the creators of the project realize their goals.
1. What is the Internet Computer?
It is a decentralized platform based on blockchain technology to exploit its advantages for creating Web3, a new generation of the Internet where corporations will no longer play a dominant role. The project aims to address pressing problems of today’s Internet (according to cryptocurrency market prediction), such as misuse of user data, monopolization of resources and insufficient security.
2. Who launched the Internet Computer project?
The project was announced in 2015 by the founder and chief scientist of the DFINITY Foundation. At the moment, Internet Computer is being implemented by a team made up of some of the best blockchain and IT specialists. ICP immediately attracted the attention of investors and managed to raise an impressive amount of funds in the first few years.
3. What is an ICP token?
It is a native platform token designed for service purposes. ICP token (good to trade it) holders can participate in the platform governance. In addition, locked tokens are used as a means of paying for the computing power provided.
4. What is a canister?
It is essentially an ultra-scalable smart contract. That is, it is a function or application running on a decentralized ICP platform. In other words, it is a special container that contains compiled software code ready to be executed. The end user of the Internet Computer platform will be able to interact with the canisters having approximately the same experience as when dealing with conventional online services in Web2.
5. Is ICP a good investment?
ICP, with a price of around $740 per coin at the start of sales, looked like a very promising coin. However, due to selling pressure, the ICP price started to drop rapidly. At the time of writing, the price per ICP token is less than $7. However, it is a too young coin, which still has a chance to rebound in price (according cryptocurrency market prediction).
6. How high can the price of ICP go?
Given Internet Computer’s roadmap, we are dealing with a project with long-term plans. Probably the full transition to Web3 – where ICP will play an important role – will not take place before 10 years at the earliest. Given that, it is likely that the price of ICP will not change dramatically in the blink of an eye. However, the token could be a pretty good long-term investment (at market now), as many experts agree that the future belongs to Web3.