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Explained: What is Internet Computer and how it plans to take down tech giants

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Internet Computer (IC) is a cryptocurrency developed by the Dfinity Foundation, a nonprofit based in Zurich, Switzerland.

Explained: What is Internet Computer and how it plans to take down tech giants

Internet Computer (IC) is a cryptocurrency developed by the Dfinity Foundation, a nonprofit based in Zurich, Switzerland. It currently has a market cap of $14 billion, making it the 11th largest cryptocurrency (by market cap) and is a strong competitor to Ethereum and Bitcoin.

IC claims it was launched to become a decentralised version of the internet. It is faster than Ether and can even increase capacity with demand. Amongst the popular cryptocurrencies currently being traded, IC stands apart for many reasons.

What is Internet Computer cryptocurrency?

IC runs on its own proprietary protocol called Internet Computer Protocol. It allows anyone to build software and publish content on the Internet without the help of Google and Facebook for instance. The company claims to provide a ‘hackproof platform’ at ‘dramatically’ reduced costs with interoperability.

IC backed by venture capital companies Andreesen Horowitz and Polychain Capital also intend to launch apps for decentralised finance. With the DeFi apps, anyone could use cryptocurrency (preferably IC) to substitute the existing and traditional financial processes and switch over to the new age IC.

Dfinity claims it can scale up its capacity as demand increases and it should be seen as a network that uses blockchain technology to power apps rather than as a cryptocurrency.

How different is IC from others

Three features make IC different from others. With IC, anyone can create an app using its blockchain technology. It basically allows the app developer to do an end-run around the big tech companies.

According to the founder of Dfinity Dominic Williams, its technology does not run on the cloud like others do. It runs on dedicated hardware established by independent parties. IC runs and operates at web speed, unlike the other cryptos that take 30 minutes or more to complete transactions.

How did they achieve overnight success?

Andreesen Horowitz, a powerful and big-ticket venture capital company has come on board with Polychain Capital that specialises in venture capital for cryptos. Other firms backing IC are Amino Capital, Aspect Ventures and Eterna Capital.

The claims made by the founder to displace the traditional cryptocurrency with its speed, scalability and reduced computing costs also were seen as a plus. Of course, decentralising the Internet and challenging the bigwigs was an added advantage.

The third reason is the huge appetite for cryptocurrencies currently. Any new coin or token being launched is lapped up by investors and traders.

Where to buy

Unlike other cryptocurrency coins that are available easily in exchanges to buy or sell, IC is currently available at two of the largest exchanges - Coinbase and Binance as of now. A smaller exchange named Gate.io also offers IC.