Internet Computer, a cryptocurrency that was only launched on Monday, has a market value of around $ 35.8 billion and is trading at around $ 289, according to CoinMarketCap.
On Monday, the market value rose to over $ 90 billion (at a price of around $ 731), but within minutes the price dropped to $ 18 billion (price of around $ 146).
The founders of the cryptocurrency, the Dfinity Foundation, intend to turn Internet computers into a decentralized version of the Internet.
The internet computer blockchain uses smart contracts – just like the Ethereum blockchain – which can support a range of applications and platforms.
For example, one could create decentralized applications like DeFi apps (also known as decentralized finance). DeFi apps are recreating traditional financial systems with cryptocurrency. In addition, developers can use the Internet computer blockchain to create websites and other Internet services such as social media or messenger applications.
In contrast to Ethereum, however, according to Dfinity, the blockchain of internet computers runs much faster and is cheaper due to the way it is set up – compared to its speed and capabilities with the internet.
“The Internet computer works very differently than any other blockchain,” Dominic Williams, founder and chief scientist of the Dfinity Foundation, recently told Bloomberg. “Today, a lot of blockchains run largely in the cloud. The internet computer runs entirely on dedicated hardware that is installed by independent parties around the world.”
It can run at web speed and increase capacity with demand, he said.
Williams noted that developers or users on the traditional Internet may rely on programs developed by large technology companies. However, with the internet computer, users can create their own applications or websites on its blockchain that will not be run by any entity as it is decentralized, he said.
The internet computer project raised more than $ 120 million from investors like Andreessen Horowitz and Polychain Capital.
Although its market value made headlines, the future of its success remains to be seen.
Since its debut, the Internet computer token has seen price fluctuations, as is common with cryptocurrencies. While the price may level off over time, Internet computers face competition from other blockchains that use smart contracts, including Ethereum – especially as Ethereum is upgraded to Ethereum 2.0 – and Cardano.
Internet Computer is currently number 9 among the top 10 cryptocurrencies.
Ether, the cryptocurrency operated by Ethereum, ranks second with a market value of around $ 493 billion.
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