Thread by @ValerieTetu

The Internet Computer Protocol is not another L1. When I realised this, I thought it was important to share more.
I create "cheatsheets" for protocols I learn about. It helps me consolidate what I learn, and form my opinions. Here it is for @dfinity. #ICP
(+ 🧵)

1/ The Internet Computer (IC) aims to create a new paradigm for the web: to enable our web systems and services to run entirely on-chain and using smart contracts, to make it more secure and decentralised, without compromising speed, execution, or cost.

how?

2/ The IC consensus model leverages Chain Key Cryptography.
Instead of each node having to compute the entire blockchain from genesis block to validate a single transaction/output (like ETH or BTC), the IC uses decentralised digital signatures.

3/ The IC has a single public key that allows data to be verified, and secret-key shares are distributed across nodes. (eliminating the single-point-of-failure risk associated with one entity managing the private key)

4/ Nodes need to cooperate and run an interactive protocol (threshold scheme) to generate a signature using their private-key shares.

Nodes in the IC are partitioned and grouped in "Subnets". Subnets own their own corresponding public key, and are responsible for consensus.

5/ The great thing: the network only needs one public-key to validate any of the results from the subnets.

Each Subnet hosts a subset of "canisters" (IC smart contracts). As a result, canisters are run on many nodes instead of one.

6/ Canisters on the IC have variable immutability. This is a great feature, since canisters can be updated when a dapp is first released to iterate, and when ready, the ownership can be delegated to a DAO to govern changes, or to no one (to become immutable).

7/ The Network Nervous System (NNS) is the governing body of IC. Anyone can stake ICP tokens into "Neurons" to participate in governance. Neurons are responsible for submitting and voting on proposals that are then executed by the NNS.

8/ The NNS is responsible for upgrading the IC, overseeing ICP tokenomics, onboarding new nodes, creating subnets, etc.

9/ So what makes ICP exciting?
Superior UX + Security + Efficiency + Scale.
(and a few things on the roadmap..)

10/ Let's start with UX:
- users don't need tokens to use the network (reverse gas model)
- users don't need wallets (accounts can hold tokens)
- modern device authentication (with device password)
- universal internet identity (interoperable anonymising portable identity)

11/ Then security:
- no cloud (0% of nodes run on cloud)
- private by default (no ledger)
- decentralised private keys for consensus (chain key crypto)

12/ Efficiency:
- Low cost approx $5/GB/yr (vs $350M/GB/yr for ETH)
- 0.045s block time (vs 14s for ETH)

and Scalability:
- partitioned bandwidth (localises demand in subnets vs the entire network)
- unbounded on-chain storage and computation

13/ To experience what an IC experience feels like, I would recommend:
@DistriktApp (decentralised linkedin)
@DscvrO (decentralised reddit)
@ORIGYNTech
and @OpenChat (on-chain chat)

ask yourself: does it feel on chain (i.e. slow, expensive, clunky..)? no.

it's impressive.

14/ So what is coming?
-SNS (algo DAOs that will allow DAOs to create their own governance and economies)
-HTTP requests (to communicate directly with the rest of the web)
-ECDSA Signatures (direct integration of BTC and ETH blockchains..maybe more)

(pause on that last pt..)

15/ The @dfinity team is near the release of their native BTC integration. What does this mean?
Using real #BTC in canisters (smart contracts). No bridges. No wrapped assets.

Think abt that. A new standard for interoperability is abt to emerge.

Does that make ICP Layer0? Maybe.

16/ That being said, the IC has a few challenges:
a) reputation associated with public token sale
b) not all of the functionality is available/deployed
c) the ecosystem remains small and underdeveloped

but these can be overcome:

17/ resolution:
a) as people understand and experiment with the technology and dapps, token considerations fade
b) the team is brilliant and keeps building. this takes time, but is a continuous WIP
c) open up, build relationships and partnerships with the broader web3 ecosystem

18/ I hope the IC takes this last resolution pt into account - to broaden the community beyond its internal bounds.

If the IC has the potential to become a baselayer for other protocols to run on, it would need to build those bridges (not only tech - but human).

19/ What the @dfinity team is building is impressive, and important for web3 to evolve.
My hope in sharing this is that someone else might learn smthg new, or get curious enough to get involved.

comment with adds/thoughts!

(and thanks to @IsaacValadez55 for the expertise..:))