With the help of the decentralized, blockchain-based Internet Computer network, developers can publish programs that operate on nodes spread over the globe and control conventional hosting services and venues. Simply said, every node that is a member of the channel serves as a web server.
The Internet Computer consists of three independent yet related technologies.
- ICP, the blockchain’s virtual money, is utilized for administration and computing within the network.
- The “Internet Computer Protocol” is a blockchain infrastructure that facilitates web publishing operations.
- The “Dfinity Foundation” is responsible for designing the network Interface and overseeing ICP.
Making web publication simpler and quicker without the impact of large, centralized technological companies is the main goal of Internet Computers. Let’s examine a couple of this blockchain’s benefits and drawbacks to see whether there is any investment potential.
Advantages
Following its publication, it has gained a huge following. Several crypto financial websites’ analysts and specialists have made predictions concerning this virtual currency due to its active market. Many people are quite positive about its prospects on the market, while a small minority remain cautious. The advantages listed below can assist ICP in meeting some of these value projections.
- Extremely accessible
ICP, in contrast to other cryptocurrencies, is well-liked by crypto exchanges and intermediaries. Presently, it is featured on several well-known trade networks. Millions of market participants who want to acquire, sell, and store investments for a long time are exposed to ICP through the platforms.
It will receive additional liquidity as a result of its significant exposure. This would boost the digital asset’s trading rates and have a favorable impact on the cryptocurrency’s global capitalization.
- Decentralized framework
The network is set up in a way that is unrestricted by regulation. Decentralized apps are accessible as long as the gateways are maintained by cloud services. An international network of data centers serves as the Internet Computer’s operating environment. This implies that a site is maintained on multiple database centers rather than just one. This makes censorship challenging.
- Popularity
It gained popularity quickly after being listed on cryptocurrency platforms, commanding a price of $317.45 on May 14. Only time will be able to determine the cryptocurrency’s true worth when it reaches full efficiency and faces off against high-tech companies for a piece of the consumer market.
- Smart contracts
When it comes to networks for programmable contracts, Ethereum has the first-mover benefit. However, this characteristic is also present in Internet Computer Networks. This indicates that it will increase the number of decentralized finance solutions already in operation.
Disadvantages
ICP, like all assets, is not flawless, despite having a remarkable performance in its first month of trade. Before choosing to invest in an Internet computer, there are several problems to be aware of.
- Uncertainty of future
You can just invest in a cryptocurrency depending on the likelihood of specific favorable outcomes. You should not consider investing in the protocol until it supports fully-fledged online channels and decentralized finance apps with billions of dollars invested. This is the main justification for why you should only trade in ICP if you can risk losing money.
- High volatility
In just a few days of trade, ICP has experienced enormous gains and rapid declines. On its first day, it soared from $0 to a peak of $730.73 before losing 41.38% of its value in a matter of hours. For seasoned day investors who know when to go long or short, such instability is not a bad thing. For a novice dealer or investor, purchasing ICP and then neglecting the asset for longer than two days can quickly result in irreparable damages.
