What is Internet Computer (ICP)? A Beginner’s Guide

Aight, close your eyes. Picture the internet as this massive, overcrowded city. Over there, you’ve got Amazon setting up a shop the size of a town, charging people rent just to exist. A few blocks down, Google is selling maps to navigate the place—except they’ve conveniently blurred out any street that doesn’t pay them. Meanwhile, Facebook is in the alley, collecting every juicy bit of gossip you drop, selling it to the highest bidder.

This is the web we live in today: a monopolized, corporate-controlled mess where you, dear user, are the product. But what if there was another way? What if we scrapped the rulebook and built a new internet—one where no single entity controls everything, where websites and apps run directly on a decentralized blockchain instead of corporate servers? Welcome to Internet Computer (ICP)—a blockchain project so ambitious, it’s basically trying to burn the old internet down and start fresh.

We’re not talking “faster Ethereum” knockoff. No, this is something else. It runs at web speed, eliminates transaction fees for users with a reverse gas model, and makes traditional data centers about as useful as a flip phone in 2025. Built by the DFINITY Foundation, ICP is powered by cutting-edge sorcery like Chain Key Cryptography, Canister Smart Contracts, and the Network Nervous System (NNS)—all of which sound like futuristic dystopian government programs, but in reality, they’re making decentralization actually work.

So, should you care? If you like the idea of an internet that isn’t run by the same five companies that control everything else in your life, then yes—you absolutely should. Because if ICP succeeds, the entire internet might get a reboot. No gatekeepers. No middlemen. Just a public internet, built by and for its users. Now, let’s break this beast down, shall we?

Internet Computer Blockchain Review: Summary

The TLDR; ICP is a fundamentally new approach to blockchain computing. Instead of relying on centralized data centers, ICP is powered by independent data centers across the world. These node machines work together to process data, store applications, and execute smart contracts. Unlike traditional blockchains that get slower as they grow, ICP scales infinitely thanks to subnet technology—which basically means new parts of the network spin up automatically when more computing power is needed. It uses Chain Key Cryptography, allowing it to verify transactions in milliseconds, making it the fastest blockchain in the game. Forget waiting 10 minutes for a transaction—ICP moves at web speed.

Terms You Need to Know Before Understanding ICP Coin

Alright, before we dive headfirst into Internet Computer (ICP), let’s cover some key terms. If you’ve ever tried understanding blockchain jargon without a glossary, you probably ended up feeling like you were reading ancient hieroglyphs. Let’s fix that.

Alright, now that you speak fluent ICP, let’s get into the meat and potatoes.

What is Internet Computer (ICP)?

Think of the Internet Computer Protocol (ICP) as a global computer network that lets you build and run websites, dApps, and even large-scale applications—without relying on centralized data storage or cloud providers. Instead of running apps on Google Cloud or AWS, developers can deploy them entirely on the blockchain—it wants to be the infrastructure for a new, decentralized web.

This is where things get crazy. Unlike Ethereum, which struggles with scalability and high transaction fees, ICP is designed to process transactions at web speed—fast enough to run modern apps with no lag. It’s also governed by its Network Nervous System (NNS), which means the network evolves based on community voting instead of a few corporate executives making decisions behind closed doors.

To put it simply: ICP wants to decentralize everything. Websites, applications, AI, even Bitcoin integration—all without relying on Big Tech. If this works, the web could become something truly free and open, the way it was meant to be.

Now, let’s rewind and see how this all started.

History of ICP Crypto

ICP roots go back to 2016, when Dominic Williams and his team at DFINITY started working on a new kind of blockchain—one that could scale infinitely and run at the speed of traditional web applications.

Fast forward to 2021, and ICP officially launched with a bang. The hype was real—ICP was backed by heavy hitters like Andreessen Horowitz and positioned as a game-changer for the blockchain world (Here’s a little guide on what is blockchain). Its price skyrocketed to nearly $500 within days… and then came the infamous crash. Within weeks, ICP tumbled over 90%, leaving investors wondering if they had just witnessed the fastest pump-and-dump in history.

But here’s the thing—ICP didn’t disappear. While the price drama grabbed headlines, the DFINITY Foundation kept building. Since launch, ICP has integrated Bitcoin smart contracts, improved its governance model, and continued expanding its developer ecosystem. The hype cycle may have burned some traders, but the technology behind ICP is still very much alive.

About the Internet Computer Team

The masterminds behind ICP are the folks at DFINITY, a Swiss-based non-profit dedicated to building a decentralized internet. But don’t let the “non-profit” tag fool you.

Led by cryptographers, engineers, and ex-Googlers, the team has spent years developing ICP’s core technologies, including Chain Key Cryptography and the reverse gas model. Some of the key players include:

• Dominic Williams (Founder & Chief Scientist): The visionary behind ICP. Think of him as the Vitalik Buterin of the Internet Computer, except with a mission to take down centralized cloud infrastructure.
• Timo Hanke (Chief Scientist): A Bitcoin mining expert who helped develop some of the early innovations in cryptographic security.
• A team of world-class cryptographers and AI researchers: These are the people building ICP’s decentralized computation model, making sure it can scale without the usual blockchain bottlenecks.

And that brings us to the man at the center of it all…

Who is the Founder of ICP Coin?

Dominic Williams—the mastermind behind Internet Computer (ICP) and the man who wants to burn Big Tech’s control of the internet to the ground.

Williams isn’t your typical crypto bro launching yet another “decentralized” finance project. He’s been working on blockchain technology since before it was cool, developing new cryptographic models and advocating for a fully decentralized internet long before ICP even existed.

What makes him different? Unlike many crypto founders who are obsessed with financial applications, Williams is focused on decentralizing the entire web. He believes the modern internet is broken—controlled by a handful of corporations, riddled with censorship, and plagued by high fees for developers. His vision for ICP is a blockchain that replaces cloud computing entirely, making web applications fully decentralized and community-owned.

But Williams isn’t just an idealist. Under his leadership, DFINITY has raised hundreds of millions in funding, built one of the most technically advanced blockchains in the world, and continues to push boundaries in decentralization, AI integration, and blockchain scalability.

Of course, like all big crypto figures, he has his fair share of critics. Some argue that ICP’s complexity makes it difficult to adopt, while others point to its volatile launch as proof that the project was overhyped. But love him or hate him, Williams isn’t backing down. He’s on a mission to create a new kind of internet—and ICP is the vehicle to make it happen.

Aim of the Internet Computer Project

If you haven’t caught on yet, ICP isn’t here to play small. This isn’t another “let’s make transactions faster” blockchain. No, ICP wants to reboot the entire internet—strip it away from the hands of centralized tech giants and give control back to the users.

Think about it—right now, almost everything online runs through Amazon Web Services (AWS), Google Cloud, or Microsoft Azure. Your favorite apps? Hosted on these platforms. Your data? Sitting in one of their data centers, waiting to be monetized. Your online presence? One terms-of-service violation away from being wiped out.

Internet Computer (ICP) says: “No more.” Instead of relying on centralized servers, ICP wants to create a decentralized computing platform that hosts apps, websites, AI models, and even financial services—all directly on the blockchain.

In simpler terms:

• Build anything online without depending on Big Tech. No need for AWS, no reliance on Google Cloud, no intermediaries taking a cut.
• Run applications directly on ICP’s blockchain. Websites and dApps run natively on ICP without needing traditional hosting solutions.
• Ensure data privacy and censorship resistance. Nobody can just “shut down” an ICP-hosted app because it’s owned by the community, not a single corporation.

In a world where tech monopolies have their hands in everything from your search history to your bank transactions, ICP is taking the fight to them with a new kind of internet.

Sounds ambitious? Absolutely. But let’s get specific—what real-world problems does ICP actually solve?

What Problems Does Internet Computer Solve?

The modern internet is riddled with problems we’ve just learned to live with—centralized control, expensive hosting, slow transactions, and constant censorship. Here’s what ICP’s tackling:

• Centralization: Right now, Google, Amazon, and Microsoft control most cloud services. If they don’t like you, your app is gone. ICP removes this chokehold by running apps directly on a decentralized blockchain—no middlemen, no gatekeepers.
• High Blockchain Fees & Slow Transactions: Ethereum gas fees are criminal, and Bitcoin transactions take forever. ICP operates at web speed, using Chain Key Cryptography to process transactions instantly, while the reverse gas model makes usage free for everyday users.
• Censorship & Data Privacy: Platforms can ban accounts, governments can block apps, and corporations can sell your data. ICP stores everything on-chain, making censorship impossible and ensuring only you control your data.
• Smart Contracts Are Limited: Traditional smart contracts can barely handle anything beyond financial transactions. ICP replaces them with Canisters, which can run entire web applications—fast, scalable, and upgradeable.
• No True Decentralized Identity: Tired of logging in with Google, Facebook, or a dozen passwords? ICP’s Internet Identity lets you authenticate without centralized services—no passwords, no data leaks, just seamless, secure login.

If ICP succeeds, we’re looking at a future where users, not corporations, own and control the web.

ICP Crypto Tokenomics

Alright, folks, let’s dive into the financial plumbing of the Internet Computer—ICP’s tokenomics. If you don’t know what’s meant by tokenomics, never mind, read this very informative article on ‘Tokenomics and Cryptocurrency Valuation‘ by Atlantic International University to get yourself up to speed.

Anyway, you can think of tokenomics as the economic engine that keeps the whole decentralized dream chugging along. Understanding this is crucial, so it doesn’t matter if you’re an investor, developer, or just a crypto enthusiast trying to impress your friends at the next blockchain meet-up.

ICP Coin Supply

The total supply of ICP tokens is ~530 million. But here’s where it gets interesting: ICP’s supply isn’t static. It’s dynamic, influenced by both inflationary and deflationary mechanisms.

• Inflationary Forces: New ICP tokens are minted primarily for two reasons:
  • Voting Rewards: Participants who stake their ICP in the Network Nervous System (NNS)—ICP’s decentralized governance system—earn rewards. These rewards are calculated based on a formula that started at an annualized rate of 10% at genesis and gradually decreases to 5% over eight years. For instance, on April 10th, 2023, the voting reward rate was 7.89%, resulting in a daily reward pool of about 107,000 ICP tokens.
  • Node Provider Rewards: Individuals or entities that provide the infrastructure—node machines—to support the network are compensated in ICP. These rewards are calibrated based on factors like location and hardware specs, ensuring the network remains robust and geographically distributed.

• Deflationary Forces: On the flip side, ICP tokens are burned (permanently removed from circulation) when they’re converted into cycles. Cycles are the fuel that powers computations and storage on the network. As the demand for decentralized applications (dApps) and services on ICP grows, more tokens are burned, introducing a deflationary pressure on the total supply.

ICP Coin Distribution & Allocation

Understanding who holds ICP and how it’s distributed provides insight into the network’s decentralization and potential influence dynamics.

• Initial Distribution: At genesis, ICP tokens were allocated to various stakeholders, including:
  • Founders and Early Team Members: Recognizing their contributions and incentivizing continued development.
  • Early Investors: Venture capitalists and angel investors who provided the necessary capital during the project’s nascent stages.
  • Community Airdrops: To promote decentralization and community involvement, a portion was distributed to early supporters and participants.
  • Node Providers: Entities that committed to providing infrastructure received allocations to kickstart the network.
• Current Distribution: Over time, the circulating supply has evolved due to staking, burning, and market dynamics. While exact figures fluctuate, the goal remains to achieve widespread distribution to minimize centralization risks.

ICP’s Utility & Use Cases

So, what’s the point of ICP tokens? Glad you asked. They serve multiple pivotal roles within the ecosystem:

• Governance Participation: By staking ICP in the NNS, holders gain voting power, allowing them to influence proposals ranging from protocol upgrades to economic adjustments. This staking mechanism not only secures the network but also aligns incentives, as active participants are rewarded.
• Resource Allocation (Cycles): Developers convert ICP into cycles to pay for computational and storage resources. This mechanism ensures that the network remains sustainable, as real economic value backs the consumption of resources.
• Incentivizing Network Growth: Beyond governance and resource allocation, ICP tokens are used to reward developers, node providers, and other contributors, fostering a vibrant and active ecosystem.

Economic Model & Incentives

ICP’s economic design is a balancing act between rewarding contributors and ensuring long-term sustainability.

• Staking Rewards: The NNS offers varying annual percentage yields (APYs) based on the duration of the stake. This tiered structure encourages longer commitments, enhancing network stability.
• Burning Mechanism: The conversion of ICP to cycles introduces a natural deflationary force. As more dApps and services utilize the network, more tokens are burned, potentially increasing scarcity and value over time.
• Node Provider Compensation: By pegging node rewards to the Special Drawing Rights (SDR)—a basket of international currencies—the network ensures that infrastructure providers receive stable compensation, shielding them from crypto market volatility.

In essence, ICP’s tokenomics are crafted to create a self-sustaining, decentralized ecosystem where incentives are aligned, and participants are rewarded for their contributions, all while maintaining a delicate balance between growth and sustainability.

Governance & Protocol Control

ICP’s governance is unlike most blockchain projects—it’s fully autonomous, decentralized, and on-chain, thanks to the Network Nervous System (NNS). This is the protocol’s built-in AI-powered decision-making system that allows community members to vote on everything from software upgrades to economic changes. Unlike traditional governance models where proposals can take months to execute (or never get implemented at all), NNS votes are automatically enforced once approved, making governance fast, transparent, and efficient.

To participate, users must stake ICP tokens in neurons, and the longer they commit, the greater their voting power. This encourages long-term participation rather than short-term speculation. ICP’s governance also extends to subnets, which are independent blockchain segments that scale the network. Each subnet has its own rules, but all operate under the NNS’s guidance, allowing for network-wide upgrades without forking the blockchain.

However, some critics argue that early adopters and whales wield too much influence over governance decisions, raising concerns about decentralization. That said, ICP’s model is still one of the most advanced on-chain governance systems in crypto today, eliminating many of the inefficiencies seen in other DAOs and blockchain ecosystems.

Market Dynamics & External Factors

ICP’s price and adoption are heavily influenced by investor sentiment, competition, and macroeconomic conditions. When it launched in May 2021, ICP skyrocketed to ~$450, making it one of the most valuable cryptocurrencies overnight. But the euphoria didn’t last—within weeks, the price plummeted by over 90%, leading to accusations of poor tokenomics and bad distribution. Since then, the project has continued building, integrating with Bitcoin, improving governance, and expanding its ecosystem, but the early volatility left a lasting impression on investors.

Beyond price swings, ICP faces stiff competition from Ethereum, Solana, and Avalanche in the blockchain space, while also taking on Big Tech giants like Amazon Web Services (AWS) and Google Cloud in the battle for decentralized internet infrastructure. Unlike other crypto projects that focus on DeFi or NFTs, ICP’s main challenge is convincing developers and enterprises to migrate away from traditional cloud services. Additionally, global regulations, institutional adoption, and overall crypto market sentiment all play a role in ICP’s long-term success. If developers and businesses embrace its vision of a decentralized internet, ICP could reshape how the web operates. But if adoption stalls, it risks becoming just another overambitious blockchain experiment.

How Does Internet Computer Work?

Internet Computer (ICP) is an entirely new computing paradigm that aims to replace centralized web infrastructure. Unlike traditional blockchains that rely on external cloud services for hosting applications, ICP is designed to run websites, smart contracts, and full-scale applications directly on-chain. This is possible due to its unique cryptographic breakthroughs, decentralized network of node machines, and an autonomous governance system known as the Network Nervous System (NNS).

Instead of processing transactions one block at a time like Bitcoin or Ethereum, ICP operates at web speed, thanks to its Chain Key Cryptography, which enables instant validation across independent data centers worldwide. This architecture eliminates the need for traditional web servers, meaning applications can run without relying on AWS, Google Cloud, or other centralized hosting solutions. By leveraging smart contract canisters—a more advanced and scalable version of traditional smart contracts—ICP ensures low-cost, high-speed execution of web-based applications while remaining completely decentralized.

Architecture Behind the ICP Crypto Coin

ICP’s architecture is designed for speed, scalability, and decentralization, fundamentally different from most blockchain networks. At a high level, ICP is composed of subnets, which are collections of nodes that work together to process transactions and execute smart contracts. These subnets operate independently but communicate seamlessly through Chain Key Technology, allowing for instant finality and interoperability between subnets.

Unlike Ethereum, which requires external layer-2 solutions for scalability, ICP scales natively by adding more subnets, ensuring the network never slows down as usage increases. Instead of using traditional proof-of-work (PoW) or proof-of-stake (PoS) models, ICP employs a unique consensus mechanism that combines threshold cryptography, randomized leader selection, and on-chain governance via the NNS. This allows the network to self-upgrade and scale autonomously, making it one of the most advanced blockchain architectures in existence.

ICP’s Blockchain Structure

ICP’s blockchain structure is built to mimic the existing internet, but without the centralized middlemen. It is composed of multiple layers, each serving a distinct function. The lowest layer consists of node machines, run by independent entities that provide computational power and storage. These nodes are grouped into subnets, which operate as individual blockchains within the ICP ecosystem. Instead of requiring all nodes to validate every transaction (like Bitcoin or Ethereum), ICP distributes workloads among subnets, significantly improving performance.

The Chain Key Technology acts as the backbone of this structure, ensuring that data can be securely processed, transferred, and verified across the network almost instantly. Additionally, ICP supports direct integration with external blockchains like Bitcoin, allowing for cross-chain interoperability without needing centralized bridges. This structure makes ICP one of the few blockchains capable of running fully decentralized web applications at scale, competing directly with traditional cloud computing infrastructure.

Token Standards & Smart Contracts

ICP is completely reinventing the way we think of smart contracts. Instead of using Ethereum-style smart contracts that are limited in functionality and expensive to execute, ICP utilizes Canister Smart Contracts. Canisters are more powerful, scalable, and efficient than traditional smart contracts because they can store and execute large amounts of data, run complex computations, and interact with web applications seamlessly.

These smart contracts are also upgradeable, meaning developers can improve their dApps without requiring hard forks or expensive migrations. Unlike Ethereum, where gas fees can fluctuate wildly, ICP’s reverse gas model allows users to interact with smart contracts for free, with developers covering computational costs by converting ICP into cycles. This drastically reduces costs and opens the door for real-world applications that need low-latency execution and scalable storage solutions.

Scalability & Performance

One of ICP’s biggest selling points is its massive scalability and near-instant performance. While most blockchains slow down as they grow, ICP was built to scale indefinitely. Thanks to its subnet-based architecture, new subnets can be added dynamically, expanding the network without causing congestion. Now, even at this point if you feel the concept of subnet is going tangent to your head, consider checking out ‘What is subnet‘ guide by Cloudfare.

ICP processes transactions in milliseconds, making it one of the fastest blockchains in existence. By using Chain Key Cryptography, ICP can complete cryptographic operations that normally take multiple steps in a single computation, reducing latency to near web-speed levels.

Additionally, ICP achieves horizontal scaling, meaning as demand increases, the network can expand without compromising performance. This is a game-changer for blockchain applications, allowing developers to build decentralized apps that can support millions of users without the usual bottlenecks seen on Ethereum or Solana.

Internet Computer’s Standout Features

While most blockchains are obsessed with financial transactions, ICP is here to replace the entire web infrastructure. It offers decentralized computing power at web speed, making it possible to run social media platforms, DeFi apps, enterprise software, and even AI models directly on the blockchain. Unlike Ethereum, which suffers from high gas fees and slow processing, ICP’s Chain Key Cryptography allows for near-instant execution of smart contracts and transactions. Its reverse gas model means users don’t pay for transactions—developers cover costs by converting ICP into cycles, removing the barrier of expensive gas fees.

Perhaps the most mind-blowing feature is ICP’s Internet Identity, a decentralized authentication system that lets users log into apps without passwords, emails, or third-party providers like Google or Facebook. It’s a completely new way of thinking about privacy, security, and decentralization, giving control back to users instead of corporations.

ICP’s Audit Report

If you’re betting on a blockchain to replace the entire internet, you’d better hope it’s bulletproof. Security audits are critical in the crypto space, where hacks and exploits can drain millions in seconds.

According to Cyberscope’s audit report, Internet Computer (ICP) has been evaluated across several key dimensions, achieving an overall score of 88%, which places it in the Top 10% of projects, indicating a Very Low Risk profile.​

These scores reflect a robust security framework, strong market presence, and a high degree of decentralization. However, there is room for improvement in the fundamentals category.​

Additionally, ICP’s subnet structure ensures that if one part of the network is compromised, it does not affect the rest of the system. The Network Nervous System (NNS) continuously monitors and updates security protocols automatically, meaning ICP is always evolving and improving. While no blockchain is 100% immune to attacks, ICP’s architecture and continuous audits make it one of the most robust blockchain infrastructures available today.

Pros & Cons of ICP Coin

Internet Computer Analytics

Analyzing ICP’s performance requires looking beyond just the price chart—we need to examine its on-chain activity, developer engagement, and market sentiment. The numbers tell a deeper story about ICP’s adoption, ecosystem health, and potential future trajectory.

On-Chain Metrics

Based on the latest on-chain data (as seen in the provided image), ICP had a Total Value Locked (TVL) of $31.6M in DeFi protocols (at the time of writing), indicating the amount of assets actively being utilized within ICP’s ecosystem. This number, while significant, is still far below leading DeFi chains like Ethereum and Solana, which suggests ICP’s DeFi sector is still in its early growth phase.

• DEXs Volume (24h): $743,310, reflecting moderate trading activity on best decentralized exchanges within the ICP ecosystem.
• Stablecoins Market Cap: $4.05M, with USDT dominance at 65.98%, showing that Tether is the primary stablecoin used within ICP’s DeFi space.
• ICP FDV (Fully Diluted Valuation): $3.336B, meaning that if all ICP tokens were in circulation, the total valuation of the project would be around this figure.

While ICP’s DeFi and trading activity is still growing, its ability to scale web applications beyond DeFi could be its key differentiator. If adoption increases, these on-chain metrics could see exponential growth.

ICP’s Social Media Analysis

Crypto thrives on community hype and engagement, and ICP is no exception. Looking at social media metrics, ICP maintains a strong presence on Twitter (X), Telegram, Discord, and Reddit, but sentiment is mixed.

• Twitter (X): ICP’s official handle has a dedicated following, with frequent updates, partnerships, and technical discussions. However, engagement levels fluctuate, with spikes occurring during major announcements, partnerships, or price movements.
• Reddit & Telegram: Discussions tend to focus on technical developments, staking, and governance, but there’s also skepticism from early investors who suffered from ICP’s infamous 2021 price crash.
• Developer Community: ICP has an active developer base, with contributions on GitHub and engagement in forums like DFINITY’s Developer Hub. The consistent growth in smart contract deployments and canister activity suggests that despite mixed public sentiment, ICP’s developer ecosystem remains committed.

ICP’s success in narrative-building and community engagement will play a huge role in long-term adoption—stronger marketing and developer incentives could help boost sentiment.

What Do Experts Think About Internet Computer?

ICP’s vision of a fully decentralized internet has drawn both praise and skepticism from crypto analysts, VCs, and blockchain researchers.

Supporters argue that ICP is one of the most innovative blockchain projects, with a level of technological sophistication beyond most competitors. Analysts highlight ICP’s scalability, smart contract architecture, and direct integration with the web as game-changers. VCs like Andreessen Horowitz were early backers, signaling confidence in ICP’s long-term potential.

Critics, however, point to ICP’s past missteps—particularly its volatile launch and early token distribution issues. Some argue that its complexity makes adoption difficult, and others question whether it can truly compete with Web2 giants like AWS and Google Cloud. There are also concerns that ICP’s governance model, while decentralized, is still heavily influenced by early stakeholders.

Overall, experts agree that ICP is a high-risk high-reward crypto project—if adoption grows, it could be a blockchain revolution. If not, it may remain a niche experiment with unrealized potential.

What Crypto Community Thinks About ICP Coin?

ICP’s community sentiment is one of the most polarizing in crypto. The project has a dedicated core following, but its reputation among retail investors took a hit due to its post-launch price crash.

• Bullish Arguments: Supporters believe ICP is one of the few blockchain projects with real-world utility beyond DeFi and blockchain gaming. Many in the developer community actively build on ICP, and long-term holders see it as an undervalued asset with massive upside potential.
• Bearish Arguments: Critics argue that ICP’s reputation has never fully recovered from its early price collapse. Some investors feel that the project’s marketing and tokenomics were mismanaged, and others worry about the slow adoption rate compared to Ethereum, Solana, and Avalanche.

ICP’s ability to shift its public perception will be crucial for future adoption. While its technology is strong, its branding, community engagement, and ecosystem growth will ultimately determine its success.

ICP vs. AAVE: How Do They Compare?

Comparing Internet Computer (ICP) and AAVE is like comparing a decentralized supercomputer to a DeFi powerhouse—they serve entirely different purposes, but both are major players in the blockchain space.

AAVE is a DeFi protocol that allows users to lend, borrow, and earn interest on crypto assets. It operates on Ethereum and other EVM-compatible chains, making it one of the most widely used decentralized lending platforms. AAVE’s strength lies in liquidity pools, borrowing mechanisms, and yield farming opportunities, making it a go-to platform for those looking to earn passive income on their crypto holdings.

ICP, on the other hand, is a decentralized computing platform aiming to replace traditional cloud services like AWS and Google Cloud. While AAVE is focused on DeFi applications, ICP is building an entire decentralized internet where websites, dApps, and AI models can run without centralized servers.

So, which is better? It depends on what you’re looking for. If you want a DeFi lending and borrowing platform, AAVE is the clear choice. If you believe in a future where the internet is decentralized and free from corporate control, ICP is the bigger bet.

Well, if you want to know more about AAVE, take a look at our comprehensive AAVE Review.

Is ICP a Buy?

Alright, so should you buy ICP? Like all crypto investments, it depends on your risk tolerance, investment goals, and belief in the project. But this is definitely a crypto with the most potential.

Bull Case for ICP: ICP has one of the most advanced blockchain architectures, capable of running full-scale applications without centralized servers. Its ability to scale, eliminate gas fees for users, and integrate with Bitcoin and Ethereum makes it a highly ambitious project. If adoption grows and more developers migrate to ICP, the potential upside is massive.

Bear Case for ICP: The project’s early price crash hurt investor confidence, and its adoption rate is still behind leading blockchains like Ethereum and Solana. Competing with Big Tech giants like Amazon and Google is a monumental challenge, and without mass adoption, ICP could struggle to achieve its vision.

Final Verdict: ICP is a high-risk, high-reward play. If you believe in the vision of a decentralized internet, it’s worth considering. If you’re looking for a safer bet in crypto, Ethereum or Solana might be better choices. Curious about ICP’s future value? Explore our Internet Computer (ICP) Price Prediction for 2025-2030.

But if you are a risk-taker and someone who is interested in presale projects, you might want to check out our list of 12 Best Crypto Presales to Invest in 2025. And guess what’s the most interesting part, you can easily buy these presale coins (most of them) on Best Wallet, a wallet that is the industry’s most trusted wallet.

How to Buy ICP Coins?

Buying ICP is simple, and you can grab it from most major exchanges:

1. Choose an Exchange: ICP is available on platforms like Binance, Coinbase, and Kraken.
2. Create an Account & Verify Identity: Most exchanges require KYC verification.
3. Deposit Funds: Use fiat (USD, EUR) or crypto to fund your account.
4. Buy ICP: Search for ICP trading pairs (ICP/USDT, ICP/BTC, etc.) and make your purchase.
5. Transfer to a Secure Wallet: For long-term storage, use a non-custodial crypto wallet like Best Wallet instead of leaving funds on an exchange.

For a step-by-step breakdown, check out our full guide on how to buy ICP.

Best Internet Computer Wallets

Storing your ICP securely is just as important as buying it. Here are the best web3 wallets in 2025 that support ICP and offer maximum security for your assets:

1. Stoic Wallet: This is a non-custodial wallet that allows users to store and manage ICP and NFTs.
2. Plug Wallet: A leading multi-chain ICP wallet that includes support for staking, transfers, and dApp interactions.
3. Ledger Nano X & Ledger Nano S Plus: One of the most secure hardware wallets in crypto, Ledger allows you to store ICP offline, protecting it from hacks and phishing attacks
4. Trezor Model T: Another hardware wallet option for cold storage security, Trezor ensures your ICP is protected from online threats. While direct ICP support is still expanding, it remains a top choice for long-term investors.

How to Stake ICP Coins?

If you’re looking to earn passive rewards while supporting ICP’s governance, staking is the way to go. ICP staking is done through the Network Nervous System (NNS), where you can lock up your ICP tokens and vote on governance proposals in exchange for rewards.

1. Go to the NNS dApp
2. Connect Your ICP Wallet
3. Deposit ICP Tokens
4. Create a Neuron & Choose a Lockup Period
5. Start Earning Rewards

If staking interests you, don’t miss our guide on the 15 Best Crypto Staking Coins to Invest in 2025.

Internet Computer’s Future

ICP’s future is either a bold reinvention of the internet or an ambitious experiment that fizzles out—there’s not much room for in-between. The project’s goal of decentralizing the web is monumental, and if successful, it could reshape how we build, store, and interact with digital applications.

On the bright side, ICP has continued to push forward despite market volatility. It has successfully integrated with Bitcoin for smart contracts, expanded developer tools, and refined its governance model. If adoption grows, we could see major enterprises, DeFi projects, and AI applications running entirely on ICP, free from AWS, Google Cloud, or Microsoft Azure. Its scalability and cost-efficiency give it a serious edge over Ethereum and Solana, making it an attractive option for developers looking for high-speed, low-cost execution.

However, ICP also faces significant challenges. Adoption remains slow, and it still has to prove itself as a viable alternative to centralized cloud services. Competing with Big Tech is one thing, but convincing Web2 developers to migrate to a blockchain-based ecosystem is a massive hurdle. Additionally, market sentiment is still recovering from its 2021 price crash, and investors remain cautious.

For ICP to truly thrive, it needs wider adoption, stronger developer incentives, and real-world applications that demonstrate why a decentralized internet is better than the current Web2 model. If those pieces fall into place, ICP could become a cornerstone of the next-generation internet. If not, it may remain a niche project with unrealized potential.

Conclusion: What is Internet Computer (ICP)?

Unlike Bitcoin, which revolutionized digital money, or Ethereum, which pioneered smart contracts, ICP is attempting to rebuild the very foundation of the web by creating a fully decentralized computing network.

With Chain Key Cryptography, Canister Smart Contracts, and the Network Nervous System (NNS), ICP eliminates the need for centralized cloud hosting, allowing applications, social networks, and financial services to run purely on the blockchain. It’s fast, scalable, and removes transaction fees for users—something that no other major blockchain has successfully implemented at scale.

However, the road ahead is uncertain. ICP is taking on massive competition from Ethereum, Solana, and Web2 giants like Amazon and Google. While its technology is cutting-edge, real-world adoption remains the ultimate test. If ICP can onboard developers, attract enterprises, and maintain a strong community, it has the potential to reshape the internet as we know it.

One thing’s for sure—whether ICP succeeds or not, it represents one of the boldest experiments in blockchain history, and the next few years will determine if it becomes a cornerstone of Web3 or just another “what could have been” story.

See Also: What is Algorand? A Beginner’s Guide to ALGO

Frequently Asked Questions

References

• DFINITY Foundation. “Main Page.” Internet Computer Wiki, https://wiki.internetcomputer.org/wiki/Main_Page

• DFINITY Foundation. The Internet Computer for Geeks. Internet Computer, https://internetcomputer.org/whitepapers/The%20Internet%20Computer%20for%20Geeks.pdf

• DFINITY Foundation. “Execution Layer.” Internet Computer, https://internetcomputer.org/how-it-works/execution-layer/

• DFINITY Foundation. “Architecture of the Internet Computer.” Internet Computer, https://internetcomputer.org/how-it-works/architecture-of-the-internet-computer/
• “What Is Internet Computer (ICP)?” Coinbase, https://www.coinbase.com/learn/crypto-basics/what-is-internet-computer