What Is Internet Computer (ICP) and How Does It Work?
Internet Computer (ICP) is a decentralized blockchain network developed by the DFINITY Foundation that aims to extend the functionality of the internet by allowing developers to build and run smart contracts and decentralized applications (
dApps) at web speed, without relying on traditional cloud services.
At its core, ICP transforms the public internet into a global computing platform by running software directly on the blockchain through something called “canisters,” advanced
smart contracts that can scale infinitely. It uses a novel chain key
cryptography system and a consensus mechanism known as Threshold Relay to enable fast finality, seamless upgrades, and efficient execution.
ICP tokens serve several purposes in the ecosystem:
- Governance: Holders can vote on protocol upgrades via the Network Nervous System (NNS).
- Staking: Users can earn rewards by locking up tokens.
- Computation Fees: Developers use ICP to pay for running dApps and storing data.
The project also integrates with
Bitcoin and
Ethereum at the protocol level, enabling cross-chain smart contract functionality without bridges or third parties. This positions Internet Computer as one of the most advanced
Layer-1 platforms for building open internet services and enterprise-grade dApps.
When Was Internet Computer Launched and Who Founded It?
The Internet Computer (ICP) is a groundbreaking blockchain project developed by the DFINITY Foundation, aiming to transform the internet into a decentralized global computing platform. The concept of the Internet Computer emerged in 2013 when Dominic Williams, inspired by the rapid growth of Bitcoin, began exploring ways to build faster and more scalable blockchains.
Initially, he worked on a project called "Pebble," focusing on improving blockchain performance for gaming applications. By 2015, Williams envisioned creating a "World Computer," a decentralized platform capable of hosting any software or service. This vision led to the founding of the DFINITY Foundation in 2016, a Swiss-based non-profit organization dedicated to developing the Internet Computer Protocol (ICP).
After years of research and development, the Internet Computer achieved several milestones:
1. 2019-2020: DFINITY released early versions of the protocol, including the Copper, Bronze, and Tungsten milestones, introducing the Canister SDK and the Motoko programming language.
2. May 7, 2021: The Mercury mainnet was launched, marking the Internet Computer's transition to a fully operational public blockchain.
3. May 10, 2021: The ICP utility token was publicly released, enabling users to participate in network governance and pay for computational resources.
Internet Computer Roadmap
As of 2025, the Internet Computer's roadmap focuses on several key areas to enhance its capabilities:
- Compute Platform: Improving load balancing and computational capacity through initiatives like the "Flux" milestone.
- Decentralized AI (deAI): Integrating AI models directly into the blockchain, enabling autonomous and tamper-proof AI applications.
- Chain Fusion: Facilitating seamless interoperability with other blockchains, such as Bitcoin and Ethereum, without relying on bridges.
- Privacy and Identity: Enhancing user privacy and developing robust identity solutions for secure access to decentralized applications.
- Developer Experience: Simplifying the development process with improved tools, documentation, and support to attract a broader range of developers.
What Are the Key Uses for ICP Token?
The ICP token powers the Internet Computer ecosystem by enabling users to participate in governance via the Network Nervous System (NNS), stake tokens to earn rewards, and pay for smart contract execution and data storage.
You can also trade ICP tokens on the
BingX spot market by logging into your BingX account, navigating to the spot trading section, and selecting the
ICP/USDT pair to buy or sell ICP in real time.
What Is Internet Computer Tokenomics?
At launch in May 2021, the
total supply of ICP tokens was around 469 million. As of May 2025, over 530 million ICP tokens are in circulation, with changes over time due to staking, burning, and reward distribution.
ICP follows an adaptive inflation model. New tokens are minted primarily to reward participants who stake ICP in the Network Nervous System (NNS) and to compensate node providers. Tokens are burned when users pay for computation and data storage (called "cycles"), introducing a deflationary force into the system. This dual inflation-burn model helps balance supply and demand over time, supporting long-term value stability and network growth.
How Does Internet Computer Integrate with Bitcoin?
Internet Computer integrates with Bitcoin through a
direct protocol-level connection, allowing smart contracts (called
canisters) on the Internet Computer blockchain to hold, send, and receive real Bitcoin, without the need for centralized intermediaries or wrapped tokens. This integration is made possible by
Chain Key cryptography, a unique innovation by the DFINITY Foundation that enables Internet Computer nodes to cryptographically sign Bitcoin transactions on behalf of canisters. As a result, developers can build
DeFi apps,
wallets, and other services on Internet Computer that interact directly with the Bitcoin network, while benefiting from the speed and scalability of ICP.
This seamless Bitcoin integration solves a long-standing challenge in crypto: enabling smart contract platforms to natively support Bitcoin without bridges or custodial solutions. It opens up a wide range of new use cases, such as decentralized Bitcoin lending protocols, non-custodial BTC wallets, and cross-chain decentralized exchanges (
DEXs). Additionally, this approach enhances
security and decentralization, since the transactions are signed and executed within the Internet Computer’s decentralized infrastructure. By merging Bitcoin’s liquidity and security with ICP’s programmable environment, the Internet Computer positions itself as a powerful layer for unlocking Bitcoin-native DeFi.
How to Store ICP Tokens Securely
You can securely store your ICP tokens directly on the BingX platform by using your BingX spot wallet. This option is convenient for active traders, allowing you to buy, sell, and monitor ICP tokens in real time. BingX employs advanced security features, including two-factor authentication (
2FA),
cold wallet storage, and withdrawal whitelists, to protect your assets. It’s ideal for users who prioritize ease of access and integrated trading features within a single platform.
For long-term holders or those who prefer
self-custody, several decentralized wallets support Internet Computer tokens. Popular options include the
Network Nervous System (NNS) Wallet,
Plug Wallet,
Stoic Wallet, and
Infinity Wallet, all of which allow you to interact directly with canisters and vote on governance proposals. These wallets support Internet Identity login, seed phrase backups, and
Web3 integration, giving users full control over their
private keys and digital assets. Always make sure to store your
recovery phrases offline and avoid sharing your private keys with anyone.
Is Internet Computer (ICP) a Good Investment?
Internet Computer (ICP) stands out as a potentially strong investment due to its ambitious goal of decentralizing the entire internet. Unlike most blockchains that only handle smart contracts, ICP allows developers to build full-stack dApps and services directly on-chain, without relying on traditional cloud providers like AWS or Google Cloud. This opens the door for a new class of secure, censorship-resistant applications, ranging from DeFi platforms to enterprise-grade software, all running at web speed with low latency. The protocol’s innovative Chain Key cryptography and direct integration with Bitcoin and Ethereum also enable unique cross-chain functionality, which strengthens its technical edge in the blockchain space.
Additionally, ICP offers a well-structured tokenomics model and robust governance system through the Network Nervous System (NNS), allowing token holders to influence protocol upgrades and earn staking rewards. Its burn mechanism, where ICP is converted into “cycles” to power applications, helps reduce circulating supply over time, supporting long-term value appreciation. Backed by the DFINITY Foundation and a growing ecosystem of developers, ICP combines long-term utility, scalable infrastructure, and interoperability, making it an attractive option for investors looking to support next-generation Web3 technologies.