Explaining what the big deal with Crypto is (and how the Internet Computer is upgrading the web)
By harnessing the core technologies of the blockchain and the web, The Internet Computer unlocks the raw power of cryptocurrency, transforming it into a next-generation platform built for speed, security and unlimited scalability.
So how does it work?
At the center of crypto lie the blockchain and smart contracts — two concepts that, together, create a trustless system, the beating heart that makes crypto possible. A trustless system is a revolutionary combination of open source software and transparency that enforces the rules of a transaction — so you trust the software and system, instead of people or a corporation.
For example, when you buy a house, you need an escrow company to act as a trusted third party: Everything flows through them. The company collects the money, deeds, documents then redistributes them back to the buyers and sellers once everyone has held up their end of the bargain. You don’t need to trust the other people, only escrow.
Blockchain technology eliminates the need for an intermediary like an escrow company, instead using the blockchain to guarantee trust between two parties. This is enacted with smart contracts: code that runs on the blockchain, ensuring that the rules of any given exchange are followed, no exceptions. Money comes in one side of the contract, then the open source rules are followed and the contract is executed.
Smart contracts can also be used to form and govern business partnerships and coworker relationships, known as “decentralized autonomous organizations,” or DAOs. It’s a true digital-native business setup: The same system of smart contracts that enables it to handle cash also enforces the rules governing decision-making. Instead of taking your business partner’s word for it or signing a contract, the relationships and process are natively built into the operating software of your organization — all of the trust resides in the blockchain.
Consider another real estate example: If your lease and roommate agreement was a smart contract on the blockchain, roommates would always do the dishes and take out the trash when it was their turn, because the very system that governs the money also governs the chore-wheel and guarantees all parties hold up their agreements automatically.
This trustless system is the paradigm shift that makes cryptocurrency possible, and now, with the Internet Computer, its capabilities are being unleashed to power everything.
The Internet Computer enables the next great generation of Web3 applications by combining blockchain technology and trustless smart contracts with web-hosting, storage and memory to create a breakthrough platform with unlimited potential. Its secure, fast blockchain technology stack is a foundation ready for developers to build on, and has the power to disrupt existing markets and create new ones.
The next version of the internet is ready for you, and it’s powered by the Internet Computer. What will you build?