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- 1 The Internet Computer (ICP) uses chain-key cryptography which allows the blockchain to finalize transactions in 1-2 seconds.
- 2 The Network Nervous System (NNN) is a tokenized governance structure that controls how decisions are made in the network.
The Internet Computer (ICP) is a blockchain network that seeks to develop a decentralized Internet and cheap storage system to displace the traditional Internet. It was built by the DFINITY Foundation (a non-profit organization) which was founded by Dominic Williams in 2016. In May 2018, it accounted for 50,000 registered participants and launched into the public domain in May 2021. The ICP token is the native utility and governance token of the network.
Working model of the Internet Computer (ICP)
Programs on ICP are built in the form of smart contracts called canister or canister smart contracts. Each canister is made up of bytecode (WebAssembly bytecode) and data storage. Canisters are deployed on subnets (independent blockchains made up of several nodes). For each canister deployed on a subnet, its code and data are executed and stored on every node making up the subnet. This replication of computation and storage creates a fault-tolerant mechanism such that executed canisters will continue to run even if some nodes become faulty.
The ICP uses chain-key cryptography. This allows the blockchain to finalize transactions and make updates to the smart contract state in 1-2 seconds. To achieve this, the network splits canister execution into two parts: the update calls which finalize canister execution in 1-2 seconds and the query calls that execute changes in milliseconds. Any update made by the query call to the canister state is discarded after the execution is complete.
Another component of chain-key cryptography is the threshold signature scheme. This is similar to the traditional digital signature scheme, made up of a private key (held only by the user to initiate and sign transactions) and a public key (available to the public and allows the user to receive tokens). The threshold signature scheme splits the private key into secret shares, each of which is stored in different nodes. To sign a message, the nodes communicate with each other to generate the private key but without reconstructing the key in a single location.
Governance in ICP is controlled by the Network Nervous System (NNN). This is a tokenized governance structure made by sets of canisters. To make decisions, the governance canister (made up of proposals and neurons (that determine who participates in governance) and the registry canister (containing the network’s configuration) are needed. A proposal will be executed if the majority of users (who control neurons) vote in favor.
ICP uses a variation of proof-of-stake consensus called threshold relay where nodes produce random numbers called random beacons. This is used to rank block makers.
Why use the Internet Computer (ICP)
ICP hopes to build an open-source decentralized internet where services are deployed directly to the public without relying on a central server. This bypasses the privacy and censorship issues of the traditional internet. Users of dApps built on ICP are co-builders as the governance token lets them decide on the state of the network.
ICP aims to solve the scalability problem of the first-generation blockchain. Transaction execution takes 1-2 seconds with ICP as opposed to 15 seconds in the Ethereum network and 10 minutes in Bitcoin.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
