The world of cryptocurrencies never stops reserving surprises. And the last one might even seem bizarre. A new cryptocurrency is launched and instantly becomes one of the largest coins in market value!
What is this new cryptocurrency called?
This is Internet Computer, the name of the new currency. Launched on Monday, Internet Computer had a quotation of $ 296 with a market capitalization of $ 36 billion at the time of presentation. The new currency was already positioned Wednesday as the eighth digital asset in the top 10 cryptocurrencies on CoinMarketCap's rankings. It went as high as $ 731 with a market cap of $ 90 billion to become the fourth largest cryptocurrency in the world, after Bitcoin, Ethereum and Binance Coin, right after its launch.
Launched by the Swiss-based DFINITY Foundation, Internet Computer is “the latest original Layer 1 blockchain project that launches a revolutionary public network and provides an unlimited environment for smart contracts that run at the speed of the web, serve the web and reduce processing costs of a million times or more, ”the company said on its website.
In essence, Dfinity intended to have a blockchain service for anyone, including social media users, software developers, etc., to post whatever they want without requiring them to direct their work through the services of Amazon and Facebook. This is in order to decentralize the Internet.
“Internet Computer is a level 1 blockchain protocol that could one day rival Ethereum. As the name suggests, this technology makes the Internet a great democratized computer, where the common person can establish a presence without the need for organizations like Amazon and Facebook. Its instant price increase can be attributed to the exuberance of the market, as well as the perceived need for advancement in Level 1 protocols, ”Ajeet Khurana, Venture Partner and Global Expert of the Blockchain Founders Fund, told Financial Express Online.
Already supported by large investors
For Dominic Williams, founder and Chief Scientist of the Dfinity Foundation, the idea was to bypass corporate walled gardens and cut costs. In an interview with Bloomberg, he distinguished Internet Computers from other blockchains. Williams pointed out that while many blockchains operate on cloud platforms like AWS, Internet Computers run completely on dedicated hardware.
However, getting into the top 10 cryptocurrencies right after launch is a nice achievement. “The exuberance would be justified if a considerable number of DeFi, NFT and other projects adopted the Internet Computer Protocol to establish their presence on the blockchain. But it remains to be seen whether that will happen. On the technology front, Internet Computer is quite promising, ”Khurana added.
However, the project has been in the works since October 2016, when Williams founded it and raised $ 121 million from well-known investors. The scientific breakthrough behind the new currency is the Chain Key technology that allows Internet Computers to run at the speed of the web. However, the future will only reveal how successful it will be.