Valuing ICP
The Internet Computer is a “world computer” created by weaving together the compute capacity of independent data centers across the world. Conceptually, it can be thought of as a highly secure edge cloud platform that isn’t controlled by a singular company. But does that mean that the Internet Computer’s native token (ICP) should be valued against the market capitalization of edge cloud (or even cloud) companies? If not, how should we value it? ICP has three major functions. First, it is used to pay for compute power on the Internet Computer. Second, it is used to vote on changes to the Internet Computer. And third, it is used to buy things that are sold on the Internet Computer. These three have equivalents in traditional markets that can help provide frameworks for valuation: (1) energy commodities, (2) equities, and (3) money. ICP as Energy Commodity. Software on the Internet Computer cannot run unless it has been charged with “cycles”—a so-called stable coin that is pegged to