By operating without centralized cloud services, ICP provides developers with an environment for creating web-based applications that prioritize user autonomy and data privacy.

Today, we will cover the following topics:
- About Internet Computer
- How does Internet Computer work?
- Key Features
- Technical Analysis
- Why is ICP The Coin of the Week?

About Internet Computer (ICP)

What is Internet Computer?

The Internet Computer (ICP) is a revolutionary blockchain that aims to transform the traditional internet landscape, providing a decentralized alternative to cloud computing.

This protocol is designed to scale without limitations, allowing developers to host applications directly on the blockchain. Unlike centralized cloud platforms, the Internet Computer offers a serverless model that prioritizes security, efficiency, and lower costs.

A screenshot from the ICP website.
Internet Computer Website - Front Page

This innovative approach positions ICP as a crucial part of the Web3 movement. It enables the creation of fully decentralized services, including social networks, financial applications, and content platforms, which operate independently from conventional IT infrastructure.

Dig deeper into Internet Computer whitepaper.

ICP Token

The Internet Computer Protocol (ICP) token serves multiple essential functions within its ecosystem:

Network Governance Participation

ICP holders can stake tokens to create "neurons," which confer voting rights on key network proposals.

Resource Creation via Cycles

ICP tokens can be converted into "cycles," the fuel that powers computation on the Internet Computer.

Node Operator Rewards

To ensure smooth operation and reliability, the protocol rewards node operators (who maintain network infrastructure) with newly minted ICP.

A sketch showing ICP token allocation like 52.9% foundation grants and 24.7% seed round investors and so on...
ICP Token Allocation

Deflationary Mechanisms

While ICP rewards are distributed to incentivize participation, the token also integrates deflationary elements.

Broader Ecosystem Engagement

Beyond governance and staking, ICP enables transactions across various decentralized applications within the Internet Computer ecosystem, enhancing its role as a versatile utility token in Web3 development.

How does Internet Computer work?

Decentralized Nodes and Protocols

ICP operates on a network of decentralized nodes across multiple data centers, each running the Internet Computer Protocol. These nodes work collaboratively to ensure security and performance, allowing applications to scale seamlessly.

Chain Key Technology

One of the protocol’s innovations, Chain Key Technology, coordinates updates and interactions between nodes. This enables high transaction throughput and efficient processing, supporting the Internet Computer's decentralized framework.

A sketch showing the deflationary and inflationary mechanisms of ICP.
Internet Computer Architecture

Canisters and Smart Contracts

Smart contracts on ICP are referred to as “canisters.” These canisters store data and execute code, acting as the core building blocks for decentralized applications on the network. Each canister has an independent storage and computation function, creating a powerful alternative to traditional databases.

Governance and ICP Token

Through the Network Nervous System (NNS), a governance system powered by the ICP token, users can propose and vote on protocol updates. ICP token holders contribute directly to the network’s evolution, influencing decisions such as security upgrades and feature rollouts.

Key Features and Use Cases

End-to-End Decentralization

ICP’s infrastructure enables applications to run independently of centralized server farms, offering a complete on-chain experience that enhances data security and control.

High-Performance Scalability

Leveraging its Chain Key Technology, ICP can process a vast number of transactions per second, catering to high-demand applications and fostering seamless user experiences.

Open Internet Services

The Internet Computer supports the creation of open internet services that operate independently of traditional cloud providers. This paradigm shift allows developers to build applications that offer users greater control over their data and reduce dependency on centralized entities.

A sketch from ICP website showing one of its features, Enterprise cloud 3.0.
Internet Computer Features

Privacy-Preserving DApps

With its decentralized architecture, ICP allows for applications that prioritize user privacy, making it a prime platform for developers building social media, enterprise software, and other services focused on data security.

Self-Sustaining Governance

ICP’s decentralized governance, controlled through the NNS, ensures that all network updates, security features, and improvements are community-driven and open-source.

Technical Analysis

As per our last analysis of ICP, it is trading within a wide range between the $6 support and $11 resistance.

From a long-term perspective, for the bulls to take full control, a break above $11 is needed.

In the meantime, if it retests the lower bound of the red symmetrical triangle, we will look for opportunities for short-term longs.

ICP daily chart hovering within a range in the shape of a symmetrical triangle and currently hovering around its upper bound.
ICP Chart - Daily Timeframe

Why is ICP The Coin of the Week?

With its innovative approach to a decentralized internet and focus on privacy-preserving applications, ICP is positioned as a foundational player in Web3.

The platform’s unique structure and active governance model make it a compelling choice for developers and users who prioritize decentralization.

From a technical analysis perspective, ICP’s market structure has been very clear, offering a well-defined entry if the resistance breaks upward or if it retests the lower bound of the range.

Discover our other Coin of the Week editions for fresh insights and standout projects in the crypto space!

Internet Computer
Internet Computer
Price Targets ($)
Buy range:
7.8700
-
7.4000
Target points:
8.5500
9.3000
10.6000
Leverage (optional):
x
(isolated)
(cross)
Stop loss (optional):
6.7000
Start trading:

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