What is the Internet Computer (ICP)? A beginner's explanation!

Summary

The Internet Computer is a decentralized cloud network that operates on the Internet Computer Protocol (ICP), an open-source program. It consists of nodes running ICP, forming subnets that power canisters—modules for creating decentralized applications. These canisters can serve websites, handle transactions, and interact with users directly, eliminating the need for intermediaries. The network uses a unique consensus model, allowing for scalability and trustless communication between subnets. This system aims to revolutionize the internet by providing a more secure, efficient, and decentralized platform for applications and services.

Takeaways

• 🌐 The Internet Computer is a decentralized cloud network with three main components: the network itself, the ICP token, and the ICP protocol.
• 💰 ICP is a cryptocurrency with utility in the network, used for computation payment and governance participation.
• 📈 Nodes in the Internet Computer are high-requirement data centers that run the ICP protocol, maintaining the network's operation.
• 🔗 Canisters are the building blocks for decentralized applications on the Internet Computer, allowing for direct user interaction and interoperability.
• 🔄 Canisters can be upgraded, unlike traditional smart contracts, which can only be replaced, offering flexibility for developers.
• 🔐 Controllers have the power to manage canisters, with options ranging from single developers to community-governed DAOs.
• 🔒 The Internet Computer uses a novel consensus model based on threshold cryptography, ensuring secure and decentralized decision-making.
• 🔑 Each subnet in the Internet Computer has its own public and private keys, enabling trustless communication and a scalable network architecture.
• 📊 The Network Nervous System (NNS) manages public keys of all subnets, simplifying user interaction with the network.
• 🚀 The Internet Computer has the potential to scale indefinitely by adding more subnets, each with its own consensus mechanism.
• 🔍 Users are encouraged to do their own research and interact with the Internet Computer to form their own opinions.

Q & A

What are the three different things referred to by the term 'Internet Computer'?

The term 'Internet Computer' refers to a decentralized cloud network, the ICP cryptocurrency token, and the Internet Computer Protocol (ICP), which is the open-source program running on the network's nodes.

How does the ICP token serve utility within the Internet Computer network?

The ICP token can be used to pay for computation, or staked to participate in the network's governance, earning rewards for the user.

What is a canister in the context of the Internet Computer?

A canister is a well-assembled module that runs on the Internet Computer network, allowing users to interact directly with it by sending messages, which can represent actions like transferring tokens or posting on social media.

How does the Internet Computer address the issue of intermediaries in decentralized applications?

The Internet Computer allows canisters to serve websites directly to users, eliminating the need for centralized cloud servers and associated intermediaries, thus reducing security risks and trust requirements.

What is the reverse gas model, and how does it benefit users?

The reverse gas model means that canisters have a cycle balance and pay for computation using their own balance, eliminating the need for users to have a wallet and pay fees for smart contract execution.

How can a canister be upgraded, and what are the implications for developers and users?

A canister can be upgraded by its controllers, who have full power over it, including the ability to delete or update the code. This is beneficial for developers as it allows for bug fixes and feature additions, but it also raises questions about who has the authority to update the canister.

What is the consensus model used by the Internet Computer, and how does it differ from Proof of Work or Proof of Stake?

The Internet Computer uses a new consensus model developed specifically for it, which is neither Proof of Work nor Proof of Stake. It uses threshold cryptography and public-private key pairs to reach consensus across nodes.

How does the Internet Computer ensure that a bad actor cannot change the state of a canister?

All nodes run the Internet Computer Protocol and must reach a consensus on the state of the canister. This makes it impossible for a single bad actor to cheat and change the state without being detected by the network.

What is the Network Nervous System, and how does it simplify the process of verifying transactions on the Internet Computer?

The Network Nervous System is a subnet that stores all the public keys of other subnets. It can create certificates on these public keys, allowing users to verify transactions using just one public key, significantly reducing the data required compared to traditional blockchain networks.

How can the Internet Computer scale, and what does this mean for its potential as a decentralized platform?

The Internet Computer can scale by adding more subnets, each running its own consensus. This allows for increased capacity and the potential to become the first blockchain to scale to infinity, though the network is still young and its claims need to be proven.