In-depth Analysis of ICP Ecosystem Projects: Coexistence of Technological Innovation and Investment Dilemmas

As one of the most关注 projects in the blockchain field, ICP (Internet Computer Protocol) has experienced a tumultuous development process since its inception. From an initial high of nearly 2000 dollars to a low of less than 3 dollars, and then to a recent cumulative increase of over 4 times, the price trend of ICP can be described as tumultuous. Today, we will delve into the analysis of this controversial yet promising project and its ecological development.

Project Overview

Dfinity aims to create a decentralized internet computer that allows developers to build and run various applications on a distributed network platform without relying on traditional cloud services, databases, or payment interfaces. Its vision is to reshape the business model and governance structure of the internet, eliminating the role of large tech companies as intermediaries.

The Internet Computer is essentially an extension of the existing internet, providing the computational power needed to run application software through a global network of computers. It relies on Internet Computer Protocol to define software components, enabling the global computer network to integrate resources to read, copy, modify, and return the state of applications.

Core Technology

ICP implements fully decentralized applications on the chain based on canister and chainkey technology. A canister is a container that supports WebAssembly contracts, and different canisters can transfer and interact with each other. This reflects ICP's anti-gas technology, where users do not need to pay, but instead, the canister pays for the cycles. Additionally, cross-chain technology for ckBTC and ckETH is achieved based on chainkey and elliptic curve signatures, enhancing asset custody and privacy.

Dfinity is not limited to areas such as DeFi, NFT, and gaming; it also supports multifunctional applications like social media, e-commerce, and search engines, thereby challenging traditional Web2 applications. It achieves seamless connectivity, allowing developers to build programs and applications directly on the internet's core without having to consider middleware.

In terms of performance, Dfinity has significant advantages. When applications need to scale performance, the original container can create new containers or fork itself. Each additional container increases the overall memory capacity and throughput. In addition, Dfinity can directly integrate the Bitcoin network through Chainkey encryption technology, providing support for smart contracts.

Team Background

Dfinity is developed by the largest team in the crypto space, bringing together distributed computing engineers, cryptographers, and engineering experts. The founder and chief scientist, Dominic Williams, is an experienced entrepreneur and cryptographic theorist who pioneered Dfinity's threshold relay (BLS+VRF) and PSC chain technology. The team includes world-leading cryptographers, mathematicians, and senior engineers, such as the inventor of Stanford's BLS technology, the inventors of bitcoin asicboost and p2contract, as well as multi-party computation and cryptography researchers from Yale University and the European EPFL Distributed Computing Center.

Economic Model and Capital Support

Dfinity has secured nearly $101 million in funding to support third-party teams in building applications, tools, and protocols for the platform. In May 2020, the Dfinity Foundation announced a $200 million fund to attract developers to build on the project. Investors include well-known institutions such as Andreessen Horowitz (A16Z), Polychain Capital, Multicoin Capital, and Wanxiang Blockchain.

Currently, the inflation rate of ICP staking rewards has decreased from the initial 10% to 7.21%. Users participating in NNS staking can earn voting rewards and gain more voting power through neuron decomposition or compound interest.

Community Development

Dfinity has NNS (Neural Network System), which is an open algorithmic governance system that allows community members to participate in network decisions and upgrades through voting. Additionally, SNS (Service Network System) is a decentralized autonomous organization (DAO) based on NNS, enabling community members to create and manage their own sub-networks and applications, establishing an effective community common model.

Introduction to Ecological Projects

1. Mora: A writing platform based on canister and IPFS, allowing data sovereignty to be controlled by users. Recently launched free inscriptions to attract a large number of new users.

2. Ghost: The first meme token in the ICP ecosystem, launched through SNS DAO, with a maximum increase of over 100 times. It excels in Twitter marketing and is the team that knows how to market the best in the ICP ecosystem.

3. NnsDAO: The first DAO project in the ICP ecosystem, has developed an NFT platform, GameFI products, a web3 podcast, and a knowledge education platform. It manages the entire ecosystem through a unified identity reputation system.

4. ICscriptions: The first inscription platform in the ICP ecosystem, providing an inscription marketplace, minting function, query function, and official launchpad. With both technical development and operational capabilities, it is worth paying attention to.

5. ICPswap: A DEX platform based on ICP that offers full-stack financial, market, and DAO services. The token ICS adopts a deflationary model and has recently announced an airdrop.

The ICP ecosystem is thriving, with various projects each having their own unique characteristics. As technology continues to improve and application scenarios expand, ICP is expected to occupy an important position in the Web3 domain. However, investors still need to carefully assess project risks and focus on long-term development prospects.