Is the Internet Computer Dfinity Worth a Buy?

In the heart of the 2nd Bitcoin bull market, it’s time to look at the crypto blockchains again with a new perspective.

Dfinity has a lot of hype and deep pocket investors. They have nearly $167 million in funding. They claim to be worth $10 Billion, I’m not sure how.

This Internet Computer company has a chance of making full-fledged apps on decentralized blockchain. Today Dfinity is a crypto worth $60.00 $IOU. So is it worth buying?

When Dfinity raised $102 million in funding in 2018 at a $2 billion valuation in a round jointly led by Andreessen Horowitz and Polychain Capital, it was thought of as a step-change in the world of blockchain technology. After several years of research and development and numerous breakthroughs in cryptography and computer science, Dfinity launched the mainnet of its “Internet Computer” on Dec. 18, 2020.

So the crypto has a double-catalyst of mainnet launch and Bitcoin rally. That could be a powerful thing for the company. It’s more Silicon Valley than native cryptocurrency in terms of culture.

  • In January this year it didn’t talk about blockchain at all, but instead demonstrated an open social network called “LinkedUp,” sort of open version of LinkedIn.
  • In Sept, 2020, it unveils it’s governance system and token economics. Like its sister Harmony One, it also boasts blockchain tech supremacy.
  • Dfinity launched with a very lofty goal: to build what it called the “Internet Computer”: a decentralized and non-proprietary network to run the next generation of mega-applications. It dubbed this public network “Cloud 3.0”. These are big words from Silicon Valley’s approach to decentralization.

This concept of the “Internet Computer”: a decentralized and non-proprietary network to run the next generation of “mega-applications.” Is it real or a potentially fraudulent vision? I’m not sure as an asset that it matters. Many blockchain communities talk big and don’t always perform in the “real world”.

Since its Maninet launch, it’s hard to tell if Dfinity will amount to anything. The Internet Computer promises to be the first blockchain computer running at web speed with unbounded capacity. It achieves this speed through something called Chain Key Technology, which splits calls to smart contracts into two types: update calls and query calls.

But decentralized companies are great at inventing new terminologies from blockchain engineers that might not have as much credibility as one would hope.

The majority of blockchain’s promises haven’t materialized in the last decade. Dfinity at least has a coherent vision that it tries to push.

The Internet Computer is a public blockchain network so powerful that it can natively host hyperscale open internet services, pan-industry platforms, DeFi systems, secure enterprise systems, websites, and all of humanity’s software logic and data in smart contracts.

It is created by independent data centers worldwide running the Internet Computer Protocol (ICP). It’s hard to say whether the crypto buzz will actually build companies that intersect with the real world any time soon.

The vision is to “reboot” the internet in a way that destroys the ability to create virtual monopolies like Facebook, LinkedIn, Instagram and WhatsApp. But Bitcoin and crypto essentially just replace the old monopolies with new ones, where Billionaires have even more control over the systems, while claiming not to. It’s not by accident that the whales own most of the coins of Bitcoin and all over cryptos combined.

The Internet Computer’s serverless architecture allows the internet to natively host software and services, eliminating — claims Dfinity — the need for proprietary cloud services. It’s really too good to be true in this case. They claim, that because of the nature of the architecture, apps like CanCan can be built with less than 1,000 lines of code. Facebook, to take an example, contains more than 62 million lines of code.

While I’m certain DeFi has a good future, and one can see how Binance and Coinbase might be acquired one day, many of these blockchain experiments are Silicon Valley gambling with the little real innovation they have left.

Even while being skeptical, Dfinity is actually a good purchase to make given its potential to scale. Dfinity founder and chief scientist Dominic Williams explained the purpose is to “extend the functionality of the public internet using an advanced, novel blockchain network that also eliminates the need for legacy technologies such as cloud services, databases, and firewalls. That is at least a remotely appealing world to live in.

Dfinity’s crypto is also wildly volatile, which is a trader’s boon. Dfinity is backed by the likes of Andreessen Horowitz and Polychain Capital and aims to compete with cloud computing systems like Amazon Web Services. The blockchain of AWS? That sounds half tempting even if you are inherently skeptical.

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