Internet Computer, a cryptocurrency that just launched on Monday, now has a market value of about $ 35.8 billion, according to CoinMarketCap, trading at about $ 289.
On Monday, the market value jumped to over $ 90 billion (at a price of about $ 731), but within minutes the price fell, reaching $ 18 billion (at a price of about $ 146).
The founders of the cryptocurrency, Dfinity Foundation, intend to turn Internet Computer into a decentralized version of the Internet.
The Internet Computer blockchain uses smart contracts ̵
For example, decentralized applications such as DeFi applications (also known as decentralized finance) can be created. DeFi applications recreate traditional cryptocurrency financial systems. In addition, developers can create websites and other Internet services, such as social media or messaging applications, using the Internet Computer blockchain.
But unlike Ethereum, Dfinity says the Internet Computer blockchain runs much faster and is cheaper – by comparing its speed and capabilities to the Internet – because of the way it’s created.
“The Internet computer works very differently from any other blockchain,” Dominic Williams, founder and chief scientist of the Dfinity Foundation, told Bloomberg recently. “Today, many blockchains run mostly in the cloud. The Internet computer runs entirely on special hardware that is installed by independent countries around the world.”
It can run at network speeds and can increase capacity depending on demand, he said.
Williams noted that with the traditional Internet, developers or users can rely on already developed programs of large technology companies. But with the Internet, users can create their own applications or websites in its blockchain, which is not run by any enterprise because it is decentralized, he said.
The Internet Computer project raised more than $ 120 million from investors such as Andreessen Horowitz and Polychain Capital.
Although its market value has become a title, the future of its success remains to be seen.
Since its debut, the Internet Computer token has noticed price volatility, which is common in cryptocurrency. Although the price can be set over time, Internet Computer faces competition from other blockchains using smart contracts, including Ethereum – especially since Ethereum underwent an upgrade to Ethereum 2.0 – and Cardano.
The Internet computer is currently ranked 9th among the top 10 cryptocurrencies.
Ether, the cryptocurrency powered by Ethereum, is in second place with a market value of about $ 493 billion.
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