One of the most ambitious and delayed cryptocurrency projects is finally set to see the light of day, amid signs it could add a new twist to the digital asset speculative frenzy when trading officially begins on Monday.
Dfinity is set to launch what it calls “the Internet computer,” a group of technologies intended to support a new generation of decentralized applications and services being developed in the blockchain world.
Even before its launch this week, the digital token futures that will be used to grease the cogs of its internal digital economy suggested it could claim a place among the handful of the most popular cryptocurrencies. Very volatile and thin trading at one point put the total value of its tokens to over $ 100 billion.
“A lot of people are looking for the next best thing – what’s the newest, brightest token on the market,” said Wilson Withiam, analyst at Messari, a crypto research firm. “It seems absurd for a network that has just been launched. But on the other hand, it’s a very high profile project.
However, despite the frothy advanced trading, he and other crypto experts have warned that Dfinity may struggle to differentiate itself in a market increasingly crowded with ‘smart contract’ operators and distributed computer networks that have emerged in the blockchain world.
Work on Dfinity began in 2017, just as the first cryptocurrency boom was taking off. He has raised over $ 120 million from a large group of venture capital and hedge fund firms, led by Andreessen Horowitz and Polychain Capital. Since then, the core software code for the project has been completely rewritten once as its engineering complexity multiplied and its goals changed.
Dfinity set out to create a faster and cheaper alternative to Ethereum, the blockchain that introduced ‘smart contracts’, or software code that runs automatically when certain conditions are met – seen as a key part of the next generation. applications.
In the years that followed, it also became an alternative to Amazon Web Services and other cloud computing companies, designing software that could replace their centralized networks with a set of distributed data centers managed by independent operators. .
“It doesn’t look like they’re doing anything new,” said David Nage, director at Arca Funds, which invests in digital assets. “The market has already matured and produced real applications that have uses today.”
These include other Ethereum rivals such as Polkadot, Solana and Flow, which have carved out positions in distinct markets such as games and a digital asset class known as NFT, said Swimming. There has also been a wave of new companies designed to promote distributed computing resources, such as the Filecoin and Storj storage services.
Dfinity’s “Internet computer” represents a complete set of technologies that replicate what these and other crypto projects do. Dominic Williams, the founder of the project, touted it as the single platform for what has come to be known as Web 3.0 – a decentralized set of services that could challenge the power of companies like Facebook and Google.
But he also tried to describe it as a complement to other blockchain projects, such as allowing other crypto participants to move their computers out of Amazon’s data centers and move it into the Dfinity network.
Williams compared the cryptocurrency craze to the dot-com bubble of the late 1990s, when the vast majority of speculative firms imploded, but a handful of survivors became Internet giants.
“It’s very speculative, it’s very crazy,” he said. “We think in terms of five, ten, twenty years milestones.”