Remember the once-popular DFINITY project? $ICP
In May 2018, 50,000 registered participants received an ICP token airdrop.
In August 2018, DFINITY raised $102 million from crypto venture capital firms such as a16z, Polychain Capital, KR1, and Amino Capital, and assembled an all-star team of more than 215 members, most of whom are world-leading cryptography technology, academic, and leadership talents.
In May 2021, the Internet Computer (hereinafter referred to as IC), developed and maintained by the DFINITY Foundation, was officially launched on the mainnet, attracting much attention.
DFINITY attracted a large influx of investors, application developers, and communities in its early development stages, thanks to founder Dominic Williams’s vision for DFINITY: a decentralized “world computer” that can build fully on-chain DApps without the use of centralized cloud services such as AWS, a public chain that can support countless high-performance DApps, and an infinitely scalable decentralized cloud computing platform.
Ethereum co-founder Vitalik Buterin has mentioned DFINITY on many important occasions. During the recent EDCON 2023 conference, Vitalik said that he regards the IC network developed by DFINITY as a sister network of Ethereum, rather than a competitive one.
But all this died with the fall of ICP token price, many criticisms of the network system by the community, the development of multi-chain narratives, and the recent Ethereum L2 craze. It took only a few months from "king" to "death", from the initial popularity and heated discussions to the fact that DFINITY and ICP were rarely mentioned in the Chinese Crypto community. Together with other star projects of the same period (Chia, Filcoin, etc.), it became a representative project of "peaking at the debut".
Now that the IC mainnet has been online for two years, how is the performance of technology development and ecosystem? The author will introduce the development of the IC network in the past two years from three aspects: ICP 1.0, ICP 2.0 and ecological airdrop season. (Note: 1.0 and 2.0 are unofficial definitions)
ICP 1.0: Improve the underlying infrastructure and expand the network infinitely through on-chain governance
NNS: IC’s own on-chain governance system
Since the IC network went live on the mainnet in May 2021, it has undergone more than 140 upgrades, an incredibly large number.
All of this is possible thanks to the on-chain governance system designed by the ICP token - the Network Nervous System (NNS).
Every ICP holder can become a neuron by locking up ICP, and then participate in NNS, and will receive system rewards for participating in governance. This is similar to the "staking mining" model. Participants lock up their ICP and obtain voting weight and corresponding income according to the amount and duration of the stake. The longest staking period is 8 years, which is the origin of 8yeargang, the largest ICP community at present. This is a DAO composed of a group of ICP diehard fans, accompanying the growth of the IC network.
The content of NNS proposals covers almost every aspect of the IC network, including modifying system parameters and rules, optimizing and upgrading the system, freezing and unfreezing accounts, increasing or decreasing subnets and node approval, etc. When a proposal is approved, the IC network will automatically upgrade according to the parameters in the proposal.
In other words, NNS represents the voice of the ICP community, and the IC network is upgraded accordingly based on the voice of the community.
However, since any neuron can initiate a proposal, NNS does have a large number of junk proposals, and neurons that support the passage of junk proposals can receive more token rewards for actively participating in governance voting. Although the development team has proposed modifications many times, this problem has not been effectively resolved so far.
Currently, a total of approximately $1.4 billion of ICP has been staked on NNS, which is enough to make the IC network one of the public chain ecosystems with the highest TVL.
Infinite Subnets: The “World Computer” Narrative Underpinning the IC Network
At the time of writing this article, the IC network's TPS is about 5,200 transactions per second, another amazing number. But its upper limit is unlimited.
Ethereum is focusing on sharding, but the IC network has had its own sharding solution since its launch, namely the subnet. A subnet is a special type of blockchain in the IC network that can be seamlessly integrated with other subnets, expanding the capacity of the entire IC network by adding subnets.
If the IC network needs more computing power and storage resources, the system will combine nodes to create new subnets through community regulation of NNS proposals. Subnets interact with each other through ChainKey technology, so smart contracts in the same subnet can communicate directly.
Currently, the IC network has 40 subnets, and this number will continue to increase in the future as the IC network is further adopted and developed to accommodate increasing capacity demands.
Although it has a strong technical architecture and has opened up a very strong technical soil for DApp, unfortunately, the price of ICP was manipulated by FTX founder SBF after it was listed, causing many investors and developers to lose confidence in the IC network, which caused a double blow to the currency price and ecology. The coming year of 2022 will bring together bankruptcy, collapse, and bear market panic. Fortunately, the early applications of the IC ecology have been quietly cultivated, and the community has survived this year with difficulty amid the arguments between bullish and bearish.
ICP 2.0: Technology expansion, ecosystem launch
Looking at the entire Web3 ecosystem, it is rare to see a public chain like DFINITY that "admires itself in its own world and goes with the flow in the world of others."
In the Web3 industry, there are many projects that run away with money, not to mention in a bear market with a lack of funds, shrinking profits, and community abuse. To determine whether a team has a tendency to run away, we have to see whether they work hard and continue to develop products amid the ridicule and attacks of the community; or gradually disappear and lie flat. Some projects, in order to survive, do not hesitate to give up their original vision and turn to chasing hot spots.
Community members on Twitter often suggest to founder Dom that he should change his path. For example, should he follow the NFT craze and vigorously promote IC NFT? Only by continuously introducing new users to the IC ecosystem can the price of the currency and the dying ecosystem be revitalized.
Obviously, DFINITY will continue to follow its own path, which will take 20 years. In the article "Announcement of the Internet Computer "Mainnet" and 20-Year Roadmap", Dom unveiled DFINITY's long-term development path. This path is not to "Kill ETH" or to become the No.1 in the Crypto and blockchain industry, but...
5 years later (2026): More and more Web2 traditional entrepreneurs and development teams develop products on the IC network, and it is easier to raise funds to become DAO governance.
10 years from now (2031): Become the “open internet” of the tech industry, the true Web3.
20 years later (2041): Become an “open internet” larger than Web2, expanding into everyone’s life.
Two years after the mainnet launch, DFINITY is still exploring multiple key technology areas and working hard to achieve this roadmap.
ckTokens: Moving towards a multi-chain ecosystem
In August 2022, the DFINITY Foundation announced that it had successfully integrated the IC network with the Bitcoin network. Simply put, each subnet and smart contract in the IC network can use threshold ECDSA signatures to receive, save, and send real Bitcoin on the Bitcoin blockchain. (Not a cross-chain bridge, all transactions of this method will be broadcast on the Bitcoin blockchain)
In order to facilitate the circulation and application of Bitcoin in the IC network, based on this technology, the development team launched ckBTC, a Bitcoin-pegged coin similar to WBTC, which is managed (issued and destroyed) by the ckBTC smart contract. Users can mint ckBTC by sending real BTC to the smart contract; conversely, if ckBTC is sent to the smart contract, the smart contract will pay BTC to the user's Bitcoin wallet.
That is, transactions are settled on the Bitcoin network only when users transfer BTC into and ckBTC out of the IC network. Therefore, when users use ckBTC in the IC network, they will not be troubled by the drawbacks of the Bitcoin network such as slow transaction speed and high handling fees.
In fact, there are already quite a lot of Bitcoin-pegged coins in the entire Web3 ecosystem, but ckBTC has the advantages that make it stand out among them:
- ckBTC has sufficient collateral, and users can even check the amount of collateral at any time when trading.
- ckBTC is fully decentralized and directly managed by the governance system NNS.
- Enable KYT (Know You Transaction), shield black bitcoins, and be more secure and compliant.
Currently, the total number of ckBTC on the IC network has reached 47, worth approximately US$1.2 million.
Inspired by ckBTC, DFINITY plans to build a "ckTokens" ecosystem in the future, integrating with more public chains in a non-cross-chain bridge-style manner. It is expected that the IC network will become the "transportation hub" of the future multi-chain ecosystem. Among them, the direct integration of the IC network with Ethereum and the development of ckETH have been put on the agenda.
SNS: DAO LaunchPad for Ecosystem Projects
SNS, which was called IC Network’s “core product” together with NNS when the mainnet was launched, was finally officially launched this year.
NNS and SNS are both the core governance infrastructure of the IC network. The former is responsible for the governance system of the entire IC network, while the latter is a "one-click" governance system specifically provided for ecological DApps to promote the development of DApps in open governance, tokenization, transparency and other aspects.
Each DApp in the IC network can use SNS to quickly issue tokens and open governance, which generally requires 5 steps:
- Set SNS parameters
- Transferring control of DApp
- Submit a proposal to NNS (whether to launch SNS, how much ICP to raise)
- NNS passed, and decentralized token sales started.
- If sales meet the target and DAO is successfully launched, future DApp upgrade proposals will be published in the DAO of this project on SNS; if sales do not meet the target and fail, control will be returned to the project party.
Users can participate in decentralized token sales of DApps through the “LaunchPad” function of NNS and pay directly with ICP.
Currently, five projects have successfully become DAOs through SNS, including decentralized chat application OpenChat, decentralized short video platform Hot or Not, decentralized search engine Kinic, IC network's first meme coin ICGhost, and Web3 game Dragginz. Three platforms are currently being proposed, including decentralized community management platform Catalyze, decentralized gaming platform Boom DAO, and AI computing power trading platform EMC.
Airdrop season is coming: Can the IC ecosystem explode?
If you have been paying attention to the ecosystem since the launch of the IC mainnet, the development of DeFi has been relatively slow due to the lack of unified token standards. The more intuitive feeling is that most of the early ecological projects are SocialFi, most of which are benchmarking some Web2 platform giants.
In fact, the design of the IC network is naturally suitable for DApps that require high performance, such as SocialFi and games. On most of the current mainstream public chains, all operations involving on-chain interactions (contract function calls) require a certain amount of gas fees, and the cost of interaction is affected by the price of the native token in the secondary market. In addition, in the case of network congestion, the cost of interaction will also increase accordingly.
The IC network implements a "reverse gas" model, which, as the name suggests, is the opposite of the traditional blockchain gas model mechanism. As users, we do not need to pay any gas fees when interacting with the chain. Instead, the developer prepays the interaction gas in the smart contract in advance, which is somewhat similar to the mechanism of traditional Internet, and the developer bears the operation, maintenance and hosting costs of the application platform.
This greatly improves ease of use. Compared to Ethereum, users must go to the exchange to buy ETH and then withdraw it to their wallets before they can use applications such as DeFi and NFT on ETH. This threshold directly blocks most potential users. On the IC network, developers provide Gas for the smart contracts that run DApps, and users only need to enjoy the service. In this way, users can easily use DApps without even knowing that the application is running on a blockchain.
At present, most of the early applications in the IC ecosystem have been officially launched, and some have begun to prepare for the sale of SNS tokens, so there are many airdrop expectations. Moreover, attracted by the fact that SNS can start DAO with one click, more and more projects are beginning to be built on the IC network.
(Due to space reasons, only some of the more popular DApps on the IC network are listed below. For more DApps, please check the list built by the author: http://reurl.cc/QXkNK9)
1、DeFi
Infinity Swap
A long-established IC DeFi platform.
Well-known investors include PolyChain and a16z. There are clear plans for interactive airdrops and SNS token issuance.
Bitfinity
Ethereum L2 (IC EVM layer) launched by Infinity Swap aims to connect IC with Ethereum.
Currently in the testnet stage, official products include wallets, cross-chain bridges, and block browsers. More projects are being attracted to build on it. When the mainnet is officially launched, it may set off a wave in the IC community, and the issuance of SNS tokens is worth paying attention to.
ICDex
Early DEX on the IC network has slightly better liquidity and supports more currencies.
Active on Twitter, with many followers. Official products also include IC Swap. Currently transforming to multi-chain asset DeFi (token cross-chain). On ICDex, you can conduct transaction mining and get ICL token rewards, and ICL tokens can be traded on ICP Swap.
ICP Swap
An established DeFi platform on the IC network, with functions including token exchange, liquidity mining, NFT market, governance, and is planning to launch a chat function.
The token is clearly identified as ICS, with a total of 1 billion. It is expected to be issued on SNS in the second half of this year and become a DAO. Interactive airdrops are expected.
Sonic
IC is a new force in DeFi ecosystem, with functions including token exchange, liquidity mining, and LBP (issuing tokens through liquidity pool).
According to the co-founder, the liquidity mining function will be launched soon, and all liquidity pool creators will receive token airdrops.
Funded
IC's version of Gitcoin. Projects and communities can raise funds on the platform and provide donors with NFTs with customized reward rights, such as project token airdrops, discounts during token sales, etc. NFTs can be traded on the platform. So far, many popular projects on IC have launched crowdfunding campaigns through the platform, including HOT or NOT and Catalyze.
Users can get rewards by donating to new projects they like. For example, Catalyze, which is currently conducting a decentralized token sale on SNS, will airdrop tokens to NFT holders who donate on Funded.
2、SocialFi
Openchat
One of IC's earliest social applications, the IC version of Telegram. It supports functions such as creating group chats, sending emoticons, sending red envelopes (ICP, ckBTC), etc. Voice and video chat functions will be launched in the future. Each ordinary user enjoys 0.1GB of information storage space for free, and upgrades to diamond members for unlimited.
OC tokens have been issued through SNS. Currently, you can upgrade to a diamond member of Openchat, get an invitation link, and invite friends to register to get CHAT token rewards. In addition, later this year, Openchat will launch a reputation system (through a DAO proposal), and you can make money by chatting, but it will focus on reviewing robot spam messages.
DSCVR
One of IC's earliest social applications, the IC version of Reddit. It supports posting, liking, commenting, rewarding, creating and joining topic portals, etc. The latest version also launched a web game platform, where developers can submit and upload games. Polychain once led a $9 million investment in DSCVR.
As an early IC project, it has not yet issued tokens on SNS, but if the project issues tokens, it is likely to be airdropped, because the platform has airdropped SNS-1 tokens on a large scale. Therefore, interested friends can interact more, and there is basically no cost. In addition, DSCVR often co-organizes events with other projects, with prizes, so you can participate more.
District
One of IC's earliest social applications, the IC version of Twitter. It supports posting, liking, commenting,#topicand other functions.
According to the roadmap, the project will issue tokens on SNS in the fourth quarter of this year. There may be airdrops, so you can interact more.
Hot or Not
IC version of TikTok. The short video mode of TikTok is moved to IC, and the unique token economy of Web3 is used to stimulate the enthusiasm of passive users.
Recently, the project has completed the token issuance plan on SNS. Currently, an airdrop collection activity is underway. Register for the project before July 15, 2023 to receive the HOT+COYN airdrop. In addition, as a Web3 project, Hot or Not is committed to making money by watching videos. Therefore, interested friends can interact more. In the future, token airdrops based on rankings or behavioral activities may be launched.
Catalyze
Catalyze is a community governance platform where creators can join, create their own groups, and interact with fans. They can also create NFTs to unlock online or offline activities.
At the time of writing, Catalyze is conducting a decentralized token sale on SNS. In addition, there is an airdrop plan shown in the official roadmap, and early participants/official NFT holders can pay attention to when the airdrop will take place.
Seers
More like an IC version of Twitter than Distrikt, but with fewer active users.
Seers currently only has a post-earning activity, which rewards ICP tokens based on the user's posting activity every week, and the rewards are very small. In addition, in order to prevent robots, users must pledge 1 ICP when registering, which hinders user adoption. However, the good thing is that Seers also plans to issue tokens on SNS and become a DAO.
Dmail
Web3's first decentralized mailbox, with functions including communication, domain names, asset transfers, NFT avatars, subscriptions, and notifications. Famous investors include Hashkey, Kucoin, BiXin, etc. In addition to the IC network, Dmail has now integrated other networks, including Starknet, Sei, ETH, Solana, etc.
Recently, Dmail first cooperated with Worldcoin, then completed the Pre-A round of financing, and actively cooperated with other wallet projects (accelerated adoption). It currently has 550,000 registered domain accounts and more than 300,000 personal addresses, and has a bright future. At present, Dmail adopts a points system and is expected to have airdrops in the future.
3. Games/NFT/Metaverse
Plethora
IC version of Egg Party. Complete daily tasks for a chance to win NFTs from the game's official partners.
IC1101
One of the early projects of IC ecology, a metaverse platform built on the IC network.
Currently in the testnet stage, the picture quality is very outstanding and the technology is strong. It has been selected into the Future3 incubator program supported by Hashkey. However, the development team is somewhat unsatisfactory in marketing.
BoomDAO
BoomDAO's flagship product is a decentralized game launcher that integrates a large number of game projects built on IC. Users can link their wallets with one click and play different games. Game developers can quickly upload games and issue tokens or NFTs. In addition, BoomDAO is also committed to developing game developer-friendly tools such as a universal game engine.
The tokens are planned to be issued through SNS in August, and the airdrop has been confirmed. You can quickly join the community on the official website and ambush a wave of airdrops.
Yumi
The most popular NFT trading market on IC, the forefront of the IC NFT field.
Conclusion
The author strongly agrees with what Herbert, General Manager of DFINITY Asia Pacific, said in "Exclusive Interview with ICP: Responding to Doubts, Entering Hong Kong, and the Launch of ICP Ecosystem", "The narrative of financial investment has become fatigued, and the market will eventually return to its essence and begin to pay attention to the underlying infrastructure services of the Internet. DFINITY has chosen the most difficult and even lonely path because we believe that this is the only path that can be sustained and worth taking. Once we get out of this muddy path, it will become wider and smoother."
DFINITY does a lot of great things, such as very original token economics, inverse gas model, NNS on-chain democratic governance, and more.
But DFINITY did make bad choices, such as establishing a long-term stable governance system by incentivizing neurons to lock up for 8 years, but creating a permanent "oligarchy."
However, it is commendable that from ICP 1.0 to 2.0, DFINITY has always adhered to its original vision, a public chain that can build fully on-chain DApps without using centralized cloud services such as AWS, and a public chain that can support countless high-performance DApps. With the continuous research and development of the development team, I believe DFINITY will get closer and closer to its 20-year roadmap.
Early ecological projects have also gradually grown into hard-core "Web2 killers" through silent cultivation. With the arrival of the ecological airdrop season, can DFINITY, or the IC network, return to its peak? We will wait and see.