Web3 is supposed to be all about decentralization, so why are so many projects still building on centralized Web2 platforms? The creators of Internet Computer Protocol aim to decentralize the web, enabling open-source versions of popular services and potentially replacing the current $3.9 trillion IT infrastructure. Success would mark a major shift in how the internet functions, disrupting traditional IT and reshaping social media, gaming, finance, and more.
DFINITY Protocol Ecosystem Report
The Internet Computer community is actively decentralizing its ecosystem. In 2023, users pledged nearly $80 million worth of ICP tokens to fund this effort. This allows projects within the network to become Decentralized Autonomous Organizations (DAOs). The DFINITY Foundation, a contributor to the network, highlighted this growth in its recent report.
The report also showcases the Internet Computer’s growth in other areas. Network usage increased by 121% year-over-year, and DeFi activity is on the rise as well. The DFINITY Foundation further supports the ecosystem by awarding grants to projects across the globe.
The recent surge in ICP price is likely connected to the network’s advancements in artificial intelligence. DFINITY CEO Dominic Williams showcased a “world-first” AI running as a smart contract on the Internet Computer, sparking excitement about the technology’s potential.
Empowering Communities: SNS DAOs on ICP
Within the Internet Computer Protocol ecosystem, a unique DAO framework called SNS, or Service Nervous System, empowers communities with on-chain governance of smart contracts and dApps. Mirroring the structure of the network’s governing Network Nervous System (NNS), SNS DAOs function through proposals submitted and voted on directly on the blockchain by SNS token holders. This eliminates reliance on a single entity for control, fostering true decentralization of dApps. Notably, ICP allows for multiple concurrent SNS DAOs, enabling developers to seamlessly transfer dApp control to these DAOs, granting community members governance rights over various aspects of the application.
SNS DAOs offer several key advantages within the Web3 landscape. They promote strong community engagement, leading to faster user adoption. Additionally, they provide a decentralized funding mechanism through “decentralization swaps” driven by the community itself. Unlike many existing DAOs on other blockchains where voting happens on-chain but execution occurs off-chain, SNS DAOs on ICP ensure complete decentralization by executing all decisions directly on the blockchain. Currently, the Internet Computer boasts a thriving community with 11 active SNS DAOs.
DFINITY & Internet Computer Protocol
The DFINITY Foundation, a non-profit organization, is behind the Internet Computer Protocol. ICP acts as the foundation for DFINITY’s ambitious vision: a serverless cloud computing platform built on blockchain technology. Launched in May 2021, ICP offers advantages over traditional internet infrastructure, aiming for improvements in data security, privacy, and network speed. This technology also promises greater storage capacity and a more streamlined development process for applications.
DFINITY builds and maintains this public blockchain network designed to replace the current IT infrastructure and bypass centralized cloud service providers. Unlike many existing blockchains, ICP focuses on scalability, allowing it to host complex internet services and applications built entirely on decentralized technology. This eliminates the need for additional private systems, potentially revolutionizing how data is stored, applications are developed, and different networks interact with each other.
Building Secure Web3 Services
The Internet Computer (ICP) provides a secure environment for “canister” software. Unlike traditional systems with firewalls, ICP’s advanced cryptography protects against hacks and ransomware. These canisters can be self-governing or controlled by communities/companies, making them ideal for secure and efficient Web3 services.
Additionally, canister software simplifies development and maintenance, saving costs and speeding up launch times for online services. Compared to traditional IT infrastructure, ICP offers true control, eliminating vulnerabilities like kill switches. Canisters also support complex token models and the creation of “open internet services” managed by user communities. Upcoming Web3 AI features will further enhance native Web3 integrations and trustless AI interactions.
Decentralized Cloud for a New Web
ICP aims to create a decentralized cloud similar to services like AWS, but without centralized control. This paves the way for a future where Web3 applications replicate familiar Web2 experiences in a decentralized way. ICP empowers DAOs with complete control over deployed applications’ code. This allows for complex online services that can only be updated through user-approved proposals.
To truly understand their vision, consider this quote from the ICP website:
“Today, most dApps built on other blockchains rely on centralized cloud providers (e.g. AWS, GCP) to host their frontend, amongst other parts, which introduces a single point of failure.”
Smart Contracts with Blockchain Interoperability
ICP’s smart contracts can autonomously execute transactions across different blockchains. These self-governing actors don’t rely on centralized services or require human access to private keys. This fosters a new era of trustless interactions and collaboration across various blockchains.
Internet Computer Protocol – creating a more equitable internet
Internet Computer Protocol plays a critical role within Web3. ICP tackles the issue of “omnipotent admins” in traditional Web2 applications. These admins, often individuals or companies, hold absolute control over user data and functionality. They can manipulate or censor users at will. This concept is particularly concerning for essential services like email, where admin actions could impact users’ livelihoods.
ICP, through its decentralized control and transparency, empowers users. No single entity holds unchecked power. This simplifies the understanding of Web3 for anyone, regardless of technical expertise. It highlights the transformative potential of Web3 in creating a more just and equitable internet experience for everyone.
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 Doubles Down on Decentralization! Their latest report reveals a thriving community with $80 million pledged for projects.){kind=link}