The Metaverse as we envision it today will have immense hardware and bandwidth requirements. The projects that aim to address the massive technological demands of this future virtual world are, therefore, of critical importance. Among the cryptocurrencies commonly linked to the Metaverse, the largest one by market cap is ICP, the native crypto of the Internet Computer Protocol. Within the Metaverse category, ICP towers head and shoulders above the top blockchain gaming coins, even though it is far less frequently mentioned in online discourse. In this article, we are taking a closer look at this hidden giant of the blockchain world.
What is Internet Computer (ICP)?
Internet Computer (ICP) is a decentralised blockchain-based protocol that provides an alternative to centralised, corporate-owned cloud services for application deployment and hosting. Its goal is to redefine how the internet functions by replacing traditional centralised data centres with a distributed network of nodes. This decentralised infrastructure allows developers to build and deploy applications directly on the blockchain, eliminating the need for intermediaries and improving security, scalability, and efficiency.
ICP uses a network of independent data centres around the world to provide blockchain-based cloud services. As of the time of writing, ICP’s network includes 44 independent data centres.
How Does ICP Work?
ICP utilises a unique architecture called the Internet Computer Protocol (ICP). At its core, ICP combines traditional blockchain technology with advanced cryptographic techniques to create a scalable and secure network. The protocol utilises a network of independent data centres spread across the globe. Decentralised nodes operating within these data centres execute and validate transactions on the network.
The Internet Computer achieves consensus through a novel consensus mechanism called Threshold Relay. This mechanism employs a random selection process to determine which nodes participate in the consensus process for a particular block. This randomisation ensures a fair and secure protocol, preventing malicious actors from dominating the network.
History of ICP Project
The development of Internet Computer began in 2016 when British technology entrepreneur Dominic Williams founded DFINITY, a project that was the predecessor of ICP. The project attracted substantial attention and secured significant funding from prominent investors in subsequent years. In 2021, DFINITY rebranded as Internet Computer (ICP) and launched its distributed data centre network.
ICP – The Native Cryptocurrency of Internet Computer
ICP serves as the native cryptocurrency of the Internet Computer platform. It plays a vital role in facilitating various operations within the network. Firstly, ICP is used for network governance, allowing coin holders to participate in decision-making processes concerning protocol upgrades and changes.
Secondly, ICP acts as a utility coin, providing access to the Internet Computer's resources and services. Developers can use ICP to deploy their applications on the network and access computational resources, storage, and other services provided by the protocol.
Furthermore, ICP coins can be used for staking, which involves locking up a certain amount of crypto to participate in the consensus process and earn rewards. This mechanism incentivises coin holders to contribute to the network's security and stability.
What Relation Does ICP Have to the Metaverse?
A leading crypto information portal, Coingecko.com, lists ICP in the Metaverse cryptocurrencies category. ICP is the largest Metaverse coin, far ahead of its closest competitor, RNDR, by market cap.
ICP provides a robust and scalable data centre network. This will be crucial for the functionality of the Metaverse, which is expected to have immense bandwidth, data consumption, and scalability requirements.
ICP's ability to support the development and deployment of decentralised applications (DApps) directly on the blockchain positions it as a potential backbone for the Metaverse. The platform's scalability and security features make it suitable for hosting a wide range of virtual experiences, from virtual worlds to decentralised marketplaces and social platforms.
Naturally, there is no guarantee that ICP will emerge as the sole cloud backbone of the Metaverse; other projects, whether blockchain-based or otherwise, will be vying for that role as well. However, as of today, ICP stands out as the most notable among such projects. From that perspective, the ICP crypto is shaping up as one of the best long-term Metaverse-oriented investments.