Why ICP Will Change Internet Infrastructure

It’s worth noting that Layer 2 solutions, whether they offer distinct functionality like IPFS for storage, Chainlink (an ERC-20 token) for oracles, or a scaling solution like Polygon (again, an ERC-20), exhibit centralized characteristics, which can be perceived as a limitation. On top of this, all public modular chains are too expensive for businesses or enterprises to use.  

Even more importantly, and what has seemed to go over everybody’s head, is that all of their data is stored on Amazon Web Services (AWS), a completely non-decentralized, non-blockchain, publicly traded enterprise cloud solution. Over two-thirds of Ethereum nodes are hosted on centralized services, with AWS accounting for just over 30% of that running total.  

Decentralized applications built on Dfinity’s Internet Computer can benefit from direct integration with blockchain technology. This offers a more secure and reliable alternative to traditional IT infrastructure. The platform’s programming language, Motoko, allows developers to create dApps with ease, taking full advantage of the Internet Computer’s features. As the cryptocurrency market develops, the decentralized network of ICP offers a promising alternative to the Bitcoin and Ethereum networks. ICP offers unbelievably fast transaction speeds and the ability to host dApps at fractions of the cost of any other Layer 1 network.  

Earlier this year, ICP integrated the entire Bitcoin blockchain on-chain, which means that it can fully run transactions, store Bitcoins on-chain as ckBTC (chain-key Bitcoin, utilizing chain-key cryptography), run NFT collections on Layer 2s, as well as any token built on top of the Bitcoin network. This was a stunning feat that the industry previously deemed impossible.  

This upcoming quarter, the ICP network will allow for full Ethereum functionality on-chain, utilizing the same chain-key cryptography and be able to engulf the entire network as ckETH. This would once again be completely revolutionary in the sense that it allows both Bitcoin and Ethereum to run at web speed, where update calls take 1-2 seconds to finalize and query calls finalize in milliseconds, rather than tens of seconds or even minutes at their current network capabilities. This is one of the fundamental concepts behind the Internet Computer, allowing blockchains to have a single public key as compared to owning multiple Ethereum addresses. 

As the Internet Computer continues to grow and mature, it has the potential to revolutionize the way we build and interact with software. With its unique features, scalability, and focus on security and privacy, the Internet Computer could, and likely will, become a critical part of the entire internet’s infrastructure, empowering developers and users alike. The future of this coin depends on its ability to gain traction in the public markets and establish itself as a reliable platform for building and deploying dApps. As the ecosystem gains more users, the demand for ICP coins may increase, creating a reflexivity in token value.

For these reasons, ICP represents a massive threat to the entire industry, which is exactly why FTX only offered levered short exposure to the asset and why it’s one of The Jupiter Fund’s largest holdings.