A new digital coin has already landed in the top 10 cryptocurrencies – and it has big ambitions to completely reinvent the internet.
A new cryptocurrency, called the “Internet computer,” is already valued at $ 58 billion after its launch on Saturday alone.
According to data from CoinMarketCap.com, it has jumped straight to the eighth largest cryptocurrency based on market cap, astonishing a number of industry analysts.
The internet computer is joining a number of new players including shiba inu and safemoon coins as well as others like dogecoin which was recently discussed on an American comedy show Saturday Night Live.
Currently, an Internet computer token sells for $ 366.94, although the price has climbed to just under $ 1,000 at one point.
125,000 people signed up for its Saturday launch party, which was broadcast live and included speakers and freebies.
The total market value of all cryptocurrencies now stands at US $ 2.48 trillion (A $ 3.2 trillion), compared to nearly US $ 1 trillion (A $ 1.29 trillion) at beginning of the year.
So what is this latest cryptocurrency to storm the scene?
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Who created it?
It was developed by the Zurich-based nonprofit Dfinity over the past five years and led by a British computer scientist called Dominic Williams, who has a team of 188 computer engineers, cryptographers and operational experts working on the project.
Mr Williams said the project will allow developers to move away from traditional IT and big-tech giants like Amazon and Facebook and instead rely on a seamless network of computing power sourced from independent data centers in the world. whole world.
The idea is to avoid business-driven platforms and cut costs, he said.
How it works?
Its goal is bold: to completely reinvent the public Internet. It was created to give software developers or content creators the ability to publish whatever they want to the internet, without having to use Amazon, Facebook, or other servers.
This could mean that users are creating their own social media and other services that compete with the tech giants.
The Internet computer would then host data and software, creating a global computing platform.
“By using the Internet computer, developers can create websites, corporate computer systems and Internet services by installing their code directly on the public Internet and dispense with server computers and commercial cloud services,” the Dfinity Foundation said on its website.
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Could he revolutionize internet security and remove passwords?
It’s a big call, but he feels it is possible.
One development that is touted is the ability of the Internet computer to securely manage user identities on certain applications without usernames, passwords, or cryptographic keys.
“I want you to imagine a world where you can securely authenticate to online services without ever touching a username and password, or touching cryptographic key material, using only your devices.” , said Williams. Business intern.
“I want you to imagine a world where you can connect to Internet services without ever being tracked on Internet services. And I want you to imagine a world where this happens to a much more convenient degree than any type of authentication service you use today.
What is the Australian connection?
Melbourne-based crypto fund Apollo Capital has invested in the project and said it sees great potential.
Overall, the internet computer has raised more than $ 166 million (AU $ 214 million) from investors, according to Crunchbase.
How does the coin work?
The token can be used to pay for the computer services of the internet computer and will also give the holders a vote on governance proposals to improve the network.
It has been claimed that it will compete with cryptocurrency Ethereum, which uses similar systems to operate and is currently the second ranked digital coin behind bitcoin.
Coindesk said the internet computer offers “multiple ecosystems,” including a decentralized financial exchange, a professional social network, an infrastructure to decentralize the web, and a source platform for luxury goods, just to name. only a few.
Its technology could also be used for e-commerce, claiming it has a more scalable method of verifying transactions in just one to two seconds.
What is the long term vision for Internet computing?
In 20 years, the open Internet envisioned by cryptocurrency will be significantly larger than the “closed proprietary big-tech ecosystem,” which will be in “terminal decline,” according to Williams.
“Much of the critical information infrastructure, systems and services of our global society will now operate on the open, unstoppable and tamper-proof Internet computing blockchain network,” he said.
“This will lead to profound transformations in the way things work and support an incredibly richer internet ecosystem that incorporates more innovation, collaboration and dynamism that drive positive economic growth around the world. “
What are the risks of investing in cryptocurrency?
The UK’s financial watchdog has issued a stern cryptocurrency warning, amid concerns over consumer protection, price volatility, product complexity, fees and charges, and marketing materials.
“If consumers invest in these types of products, they should be prepared to lose all of their money,” the UK’s Financial Conduct Authority said.
There is no guarantee that the cryptoassets can be converted back to cash, the regulator also warned.
“The conversion of a cryptoasset into cash depends on the demand and supply existing in the market,” he said.
Here are the main concerns:
Consumer protection: Certain investments showing high returns based on crypto assets may not be subject to regulation beyond anti-money laundering requirements.
Price volatility: The high volatility of crypto-asset prices, combined with the difficulties inherent in a reliable valuation of crypto-assets, puts consumers at high risk of loss.
Product complexity: The complexity of some crypto-asset related products and services can prevent consumers from understanding the risks. There is no guarantee that cryptoassets can be converted back to cash. The conversion of a crypto-asset into cash depends on the existing demand and supply in the market.
Costs and fees: Consumers should take into account the impact of fees and charges on their investment, which may be higher than those of regulated investment products.
Promotional material: Businesses may overestimate product returns or underestimate the risks involved.