Dfinity: How Will Our Internet Life Change With The Help Of Blockchain
Kirill Ganzha
2021-07-09 10 min
This website uses cookies
We use Cookies to ensure better performance, recognize your repeat visits and preferences, as well as to measure the effectiveness of campaigns and analyze traffic. For these reasons, we may share your site usage data with our analytics partners. Please, view our Cookie Policy to learn more about Cookies. By clicking «Allow all cookies», you consent to the use of ALL Cookies unless you disable them at any time.
Necessary
Performance and Functionality
Analytics
Advertising
Social Networking
Unclassified
We are already witnessing many technological upheavals, such as blockchain and the Internet of Things. So get ready for a breakthrough from Dfinity — now in computers and the Internet.
Dfinity and its idea
The non-profit foundation Dfinity, and by compatibility the leader among smart contract platforms, decided to radically change the world of the Internet and software with the help of Internet Computer (ICP).
It is a project that will create a cloud-based decentralized structure on the blockchain. Such an invention should give us a new generation of the Internet — the world computer. Ethereum wanted to create something similar — we can assume that the development of Dfinity is the "crazy sister of Ethereum,” which will soon compete with Google and other cloud system giants.
The invention is intended to simplify the development of new software systems, reduce the cost of preserving and protecting information, and ensure the confidentiality of user data. This idea is beneficial for enterprise and user applications like DApp. The new public computing environment will also be used for hosting social networks, messengers, search networks, etc.
The problem is that the Internet is becoming an increasingly monopolistic and corporate structure, where several giants set their own rules. Moreover, it breaks with the original goal of the World Wide Web — to create a virtual and accessible place where people can receive and share information.
Technology giants can change the terms of use in one day, and both users and entire businesses will suffer. For example, due to the change in Facebook rules, the social games company Zynga lost its franchises. Computer games were also targeted — Fortnite was removed from Google and the Apple App Store after refusing to pay 30% of the game's revenue.
Therefore, the Internet Computer with an ICP token aims to create a new generation of software that runs on smart contracts, scales, and brings users decentralization.
Internet Computer (ICP) is powered by blockchain technology. The Internet Computer Protocol (ICP token) offers an open computing platform where everyone can place software and services without the pressure of giants. Here developers, businesses, and government agencies can host software and services without risk.
How the Internet Computer works
Blockchain and mining are always accompanied by high equipment and energy costs — sometimes, the process was slow. But Dfinity solved this problem with a Proof of Stake algorithm, whose nodes generate a random number. It then selects the next node group and manages the platform protocols.
The speed problem in Internet Computer (ICP) is solved with the help of Chain Key technology, which separates the functions of smart contracts into calls and update requests. For comparison, an Internet computer can make transactions in one to two seconds, while Bitcoin takes up to 10 minutes, and Ethereum — 15 seconds.
The project is managed by a community of users who vote on updates, economic policy, and project development. The work is carried out with the help of a "Neural Network" system based on calculations and blockchain technologies.
Technological Features: ICP, Neurons, and Open Internet Service
The project uses technologies that may be unfamiliar to some users. But the main feature is the interaction of all settings that ensure smooth operation.
1. ICP
It is a service token (formerly DFN), which is a contribution that allows you to participate in the management of the project. In addition to the "membership and voting" feature, ICP enables Dfinity's private cloud networks to communicate with the public network.
2. Neurons
Neurons are part of the Network Nervous System (NNS). First, the system receives the participants’ votes using tokens. Next, the proposals are considered by the neurons that control the operator. Then, neuron operators are rewarded in tokens for viewing polls (thought mining).
3. Open Internet Service
Thanks to this technology, the service works independently, relying on support from users. In addition, open Internet Service can label public functions (for example, an API) as "persistent", allowing developers to create services that rely on data or functionality provided by other services.
The service is also supported by canisters (a computing unit isolated from the external environment), Motoko (a new programming language from Dfinity), loops (computing operations), and Network Nervous System (controls the entire IC system). Such a complex system continues to evolve and look for new ways to ensure a free global network.
Advantages of Internet Computer (ICP)
It is difficult to assess what is still not widely used, but today we can see profound benefits for businesses, developers, and ordinary users.
1. Cheap
It will be possible to forget about the countless costs of equipment, its installation, or the operation of a blockchain system on mining. Instead, IC will make the world more accessible, and CEOs will invest in developing projects rather than maintaining the system.
2. Security
You will no longer have to worry about changing the rules of the Google game, for example, relying on their policies. Instead, segmentation allows you to separate from the overall system and set your own rules of the game. A successful case is creating a DApp, an analog of Linkedin, called LinkedUp with open source.
3. Multi-faceted
If earlier similar ideas were aimed only at the problems of the cryptocurrency world, then Dfinity made us look wider. Their logo is a sign of infinity. And the founder, explaining its meaning, outlined the future path of the ICP.
"Bitcoin created the cryptocurrency market by inventing digital gold. Ethereum has shown how smart contracts should work. And the third step — the "infinite blockchain" — should be done by the Internet Computer," said Dominic Williams, Dfinity’s chief scientist.
"Bitcoin created the cryptocurrency market by inventing digital gold. Ethereum has shown how smart contracts should work. And the third step — the "infinite blockchain" — should be done by the Internet Computer," said Dominic Williams, Dfinity’s chief scientist.
4. Speed
In the world, until now, no token has been able to provide a more incredible speed of transactions. Dfinity offers the first blockchain that runs at Internet speed and can scale to support an infinite amount of computing and data.
The need for such inventions is confirmed by investors who continue to invest their money in the project. Thanks to this, the creators have the opportunity to attract an increasing number of specialists to their ranks. The Foundation offers $223.56 million for those willing to develop the ICP and provide new ideas.
The future that Dfinity has prepared for us
The project will reach $1 trillion by 2026. And this is quite a promising future for such a fresh concept. Dfinity has already launched several successful DApps, which has shown their viability:
analog of Reddit called DSCVR;
LinkedUp with open source (tracing paper on a well-known social network);
DEX (decentralized exchange).
The company has already presented its twenty-year plan, which has already begun to be implemented — two grants have already passed. I believe that such a fresh and ambitious idea — Internet Computer (ICP) should live and develop. We need to look at the blockchain not only as a monetary base but more broadly, more intelligently, as Dfinity did.