#238 Dominic Williams Reveals His Vision for the Internet Computer (ICP)

20 Feb 2025 · 1 h 15 min

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Podcast Episode Summary: Eye On A.I. #238 - Dominic Williams Reveals His Vision for the Internet Computer (ICP)

Episode Overview In this episode of Eye On A.I., host Craig S. Smith interviews Dominic Williams, founder of DFINITY and architect of the Internet Computer (ICP). The discussion centers around Williams' vision for a decentralized internet and the limitations of traditional cloud computing. Williams explains how ICP aims to revolutionize internet infrastructure using blockchain technology and smart contracts.

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Key Themes and Concepts

  1. Flaws of the Current Internet
  2. Williams argues that the current internet infrastructure is flawed, largely due to its reliance on centralized services and cloud computing.
  3. The episode emphasizes the need for a decentralized alternative that can mitigate issues like censorship and security vulnerabilities.
  1. The Internet Computer (ICP)
  2. ICP is designed as a decentralized cloud computing platform that challenges major providers like AWS and Google Cloud.
  3. It seeks to replace traditional IT infrastructure with a scalable, tamper-proof system.
  1. Role of Smart Contracts
  2. Smart contracts on ICP offer improved security and resilience, allowing for autonomous operations without human intervention.
  3. These contracts can run directly on the internet, hosting software applications and enabling decentralized applications (dApps).
  1. DFINITY's Mission
  2. Founded in 2016, DFINITY's goal is to create an alternative internet that supports a new software paradigm, allowing for decentralized governance and community-driven development.
  1. Web3 and Future of Decentralized Applications
  2. Williams discusses the vision for Web3, emphasizing the importance of decentralized applications (dApps) and governance models.
  3. The episode touches on the importance of blockchain governance, particularly how it can empower users and developers.

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Key Discussions

A. Background of Dominic Williams

  • Over 40 years of experience in software development, with a background in distributed systems.
  • Past projects include large-scale multiplayer games and systems for fast remote file access.

B. Concept of a 'World Computer'

  • Williams introduces the idea of a "world computer," which enables the internet to host software as well as connect it.
  • This reimagines the internet’s capability, allowing it to handle complex applications like social media and AI.

C. Distinction Between ICP and Traditional Blockchains

  • Traditional blockchains primarily focus on financial transactions, while ICP aims to host complex software applications.
  • ICP utilizes a unique model of deterministic decentralization to ensure security and efficiency.

D. AI and the Self-Writing Internet

  • Williams envisions a future where users can interact with AI to create and manage their own applications in real-time.
  • The concept of a self-writing internet is highlighted as a transformative development that could simplify and enhance user experience.

E. Incentive Model: Reverse Gas

  • Unlike traditional blockchains that require users to pay for transactions (gas), ICP allows software to pay for its own computations using "cycles," akin to an electric car's battery.
  • This model is designed to ensure efficiency and ease of use for developers and end-users alike.

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Key Takeaways

  • The Internet Computer represents a paradigm shift in how we think about hosting software and decentralized computing.
  • The future of the internet may hinge upon creating environments where software can operate autonomously and securely without centralized control.
  • Understanding the difference between traditional cloud computing and decentralized infrastructure is crucial for navigating the evolving landscape of Web3 and AI.

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Additional Resources

  • Official Website: [Internet Computer](https://internetcomputer.org)
  • Developer Resources: [Internet Computer Library](https://internetcomputer.org/library)
  • Follow Craig Smith and Eye On A.I.:
  • Craig Smith Twitter: [@craigss](https://twitter.com/craigss)
  • Eye On A.I. Twitter: [@EyeOn_AI](https://twitter.com/EyeOn_AI)

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This episode serves as a comprehensive overview for those interested in the potential impact of decentralized computing on the future of the internet, positioning ICP as a significant player in this emerging landscape.

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Transcript

Automatic transcript. May contain errors.

0:00I drew a lot of inspiration from Bitcoin originally. and Bitcoin is actually created by a sovereign network. So people have these things called ASICs that do proof of work computations that mediate participation in the network and they're used to drive consensus. A bit kind of in the role of a random number generator. So the internet computer is also hosted on sovereign hardware. There are these things called node machines, which are built to standard specifications and they're run by people called node providers. and at the moment there's about 140 organizations, sometimes individuals, but usually companies around the world that run these node machines at scale.

0:37And they're all over the world. Generally speaking, in vast majority installed in co-location facilities. I'm past the point of looking for jobs, but I'm not past the point of looking for people to hire. And when I need to do that, I turn to Indeed. Imagine you just realized your business needed to hire someone yesterday. How can you find amazing candidates fast? Easy. Just use Indeed. When it comes to hiring, Indeed is all you need. You can stop struggling to get your job posts seen on other job sites because Indeed's sponsored jobs help you stand out and hire fast. With Sponsored Jobs, your post jumps to the top of the page for your relevant candidates, so you can reach the people you want faster.

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2:25IONAI, as always, all run together, E-Y-E-O-N-A-I. That's Indeed.com slash IONAI right now. and support our show by saying you heard about Indeed on this podcast, indeed.com slash IonAI for a$75 sponsored job credit. Terms and conditions apply. Hiring Indeed is all you need. I've been around for a while. I've been writing software for more than 40 years, so it gives you an indication. And I did do a computer science degree, as you might expect. I did pretty well. I graduated with the highest scoring first class honors and some prizes and some other stuff. But I didn't go into academia. I became an entrepreneur originally from London.

3:25And I've always been drawn to distributed systems. I've done a lot of different things. But the first big thing I worked on was during.com. It's a thing called smart drives. It was a system for giving people fast access to remote files over dial up lines, because back then we didn't have broadband. And use something called differential compression and some kind of clever heuristics. So if I was trying to upload a file over my dial up, it would look at the file and think, well, there might be a similar file on the remote file server. and so we'll do this kind of differential compression and only have to upload a amount of the data.

4:09After that, kind of got dot-commed, but we created an enterprise product from the technology, sold that quite widely. I then created a kind of platform for commercial publishers online, ran that for several years. Then I created a computer game, which was actually formative. And, you know, I'd probably gained, prior to crypto, my most useful formative experiences from that in a number of ways. And it was a massively multiplayer game. It was unlike any other game. It was directed at kids that anyone's seen before or since. When I eventually closed it down, just couldn't keep it running for a bunch of reasons.

4:59And there's like a changed at all petition to bring it back. But it grew to about 3 million users. And behind the scenes, it used a whole lot of custom, sort of decentralized game server kind of technology I'd developed myself, allowed me to indulge my interest in distributed computing. It was powered by a thing called Cassandra, which was one of the first centralized NoSQL databases. We had the first sort of production installation of this thing called Cassandra. And then eventually, I'd sort of been watching crypto from afar and eventually it sucked me in. And first in 2013, Bitcoin, of course, by the end of that year, I thought, okay, look, I'm going to create like a blockchain for games that will allow people to buy and sell virtual goods and move value between games.

5:55And that, of course, would have had some very different requirements. It needed fast finality. It needed to be able to process much larger numbers of transactions a second than Bitcoin could. And so I started looking around, you know, things people were building at the time. Started digging into the theory, found it was a bit shaky. Nothing really worked like I wanted it to. and spent 2014 really researching how we could build blockchain networks that could run much more efficiently, run much faster, scale and so on. I'd calculated that I needed to be able to process hundreds of thousands of transactions a second for this recurring payments vision I had at the time.

6:40So I was the first guy really sort of pioneering the repurposing of classical Byzantine fault-tolerant computing techniques for the blockchain setting. And also proposing things like sharding and consensus groups and means of scaling out blockchain so they could process a lot more transactions and computation. And around this time, I was a kind of member of the early Ethereum community before Ethereum launched. And someone came up with this phrase, world computer. And world computer, I think is just really a wonderful expression. And my interpretation of world computer was different to other people's interpretation at the time.

7:32So my interpretation was that a blockchain could be used as a replacement for traditional IT and essentially extend the internet so that the traditional internet, which launched in 1983 using the TCP IP protocols and obviously started growing exponentially in the 1990s with the advent of the World Wide Web, that connects software. It connects your web browser to a web server so the web browser can download content and display it to you. It allows your WhatsApp client to send a message to another WhatsApp client. We're using it now with video streaming. But it's essentially connecting software.

8:12And I thought, wow, you could extend the internet with an overlay network. And now the internet could host software as well. And there's this idea that you could build things like social media, enterprise apps, and now AI on the internet itself. And obviously, there are a lot of advantages that come from building on a public network as opposed to a proprietary network. But more than that, I saw something in smart contracts which were being developed for Ethereum. So within the context of Ethereum, these smart contracts were designed and envisaged to be things that would enable very basic DeFi, like ERC-20 creating your token or a DEX with an automated market maker.

9:09And that was very much like their vision, you know, the community's vision of a world computer. But it's more like for me, it was like, well, that's a world calculator, not a world computer. And I saw something in small contracts that I still don't think many people have clocked, which is that it's a new form of software. And, you know, I'd already spent decades coding and, well, you know, this is a new kind of software. First of all, it's tamper-proof. which means it's immune to traditional forms of cyber attack. You don't need to protect it with firewalls and anti-malware. It's guaranteed to run the correct code against the correct data.

9:49And I saw that could be immensely valuable and cyber crime and cyber attacks are continually worsening problem. So that working, that's pretty impressive and new kind of software that's tamper proof and doesn't need protecting by cybersecurity. It's also unstoppable and within the fault bounds of the network. So, you know, you don't, it's obviously much more resilient. So it's more secure, more resilient. But the unstoppability piece means that you can simplify software design. And so I saw an opportunity to create a platform, not only where people could build, you know, web applications and services that didn't need protecting by cybersecurity and have this incredible resilience, but also where the actual software itself, the logic that makes these applications and services run could be greatly simplified.

10:46So you can reduce the cost of ownership and time to market and things like that. So it's just a general improvement on software. And you also have these remarkable new capabilities like autonomy. So autonomy is the property of running without a human controller or an organization that controls it. And we're familiar with autonomy and applications like Uniswap on Ethereum. So it's a DEX. The DAO sort of stamps out the latest version of the DEX and it can't be changed afterwards. But you could, I realized create a new kind of open internet service and these exist on the internet computer now, where there's a digital governance system that controls the software that creates that service and all the data inside.

11:37And that could be essentially driven by the community that uses the service. And developers would be part of that community and would propose software updates. And if they are updated, adopted by the governance system, and they would be installed completely automatically. So it's a bit like, we've got open source projects where there's a kind of governance system of sorts with pull requests and things like that, which you see on places like GitHub. But you could go much further than that and actually have a much more sophisticated governance system that actually ran a running service. And that could also be useful for enterprise systems where you want to make sure that there's not just one administrator who holds the keys, who might turn rogue and have an accident and do something bad.

12:34So I saw that a world computer could be an alternative to traditional IT, which would host this kind of serverless cloud environment within which you install and run a new kind of software with these kind of magical new properties that you can't get any other way. And so basically I set about building it. I proposed it in 2015. There's an old website on the Wayback Machine, Dfinity.io from 2015. And it was difficult convincing people that the science would work because people were so convinced that these networks couldn't scale and couldn't be performant. But 2016, I was a co-founder and a tech incubator in Palo Alto, California, which is the heart of Silicon Valley, and persuaded other people there to stop backing this DFINITY project thing.

13:32And 2016, October, 2016, the DFINITY Foundation was created, which is where I work now and in whose building I'm currently located. And February 2017, You know, the ledger of these tokens that would be used to sort of drive the tokenomics of the network were created. A bunch of them were assigned to DFINITY as an endowment. We raised a bit of money. We started scaling the team. We were very lucky. We benefited from some really super smart, you know, early hires. I mean, among the early teams, a guy called Timo Hanke, who had been the CTO of Terra hashing an early Bitcoin guy who designed this thing called ASIC Boost, Ben Lin, who's the L from BLS cryptography, Andreas Rosberg, the co-inventor of WebAssembly and so on.

14:29And somehow from that, we were able to really scale out this just brilliant R &D team. By the end of 2017, we were the largest R &D team in crypto. That has continued. You don't hear too much about us for a bunch of reasons, but we've continued to be this just R &D Leviathan. And eventually, after an awful lot of work, the internet computer launched May 2021. And it was a bumpy ride. I think a lot of people were very worried about the internet computer and what it might do to the status quo in blockchain. And what did this mean? And to put it in perspective, like, you know, the internet computer today hosts things like social networks and AI models.

15:22And all associated, you know, data, content and computation and that network resident code, which is an evolution of smart contracts on the internet computer, is processing HTTP and directly creating user experiences. So the whole thing's fully on the network. All these services are running fully from the network. At the moment, traditional blockchains, you know, remain focused really on sort of DeFi and the financial layer of decentralization. And they can't even, you know, store a single phone photo. So, you know, when you took a photo with your phone, you couldn't store that on any of today's traditional blockchains or any other blockchain that someone defines as non-traditional.

16:08and they focus on like, you know, DeFi and tokenization. And whereas the internet computer does do DeFi and tokens, but it's also focused on compute, hosting computer scale and enabling the internet to host software as well as connect software. And, you know, the network's grown. We spend the vast majority of our money on R &D, not on marketing and so on. We think in the end, that's the right way forward. And despite that, I mean, the compute on the network grew by more than 500 % last year. And we think it's going to grow much faster, mainly because of two big developments. One is just AI generally, the network will run AI, and that consumes an awful lot of compute.

17:02Cycles, Cycles is the fuel for compute. And the other is this thing called the self-writing internet, which is enabled by AI. And the self-writing internet is a paradigm where people just chat to AI, and it builds what you want according to your instructions, completely solo, and gives you a URL where you can access your custom website, custom web app, custom internet service, custom enterprise app. And even in production, while it's got data inside of it, you can keep on talking to the AI to update and improve it. And we think this self-writing internet paradigm is going to be like an iPhone moment for, you know, crypto that's focused on compute and the world computer paradigm generally because people will just be able to talk in a secure way with AI and build out their own corner of the internet ecosystem, their own internet functionality in real time and obtain this sovereign functionality and the sovereignty piece is very important.

18:13That's running on a public network where they have complete control and there's nobody that can make them a captive customer, where they own the underlying software even though they're not writing it themselves and all the underlying data. And they don't have to worry about security, of course, because it's tamper-proof. They don't have to worry about resilience because it's unstoppable. And by talking to the AI, if they want, they can also create Web3 functionality and AI functionality. Because, of course, these things they build on the internet computer can interact with AI via APIs. So, yeah, that's kind of a long summary.

18:49that that's yeah yeah well let me start asking some questions because um i mean maybe you can back up and and and give uh an explanation um of of the physical side of this so So blockchain, as it exists today, is really a registry, right? It's a ledger, immutable ledger, because it doesn't exist in any single place. It exists across all the nodes of the blockchain. but you were talking about how the blockchain couldn't even store a cell phone photo. How does it... So you have the blockchain. Well, is that the case, right? So, yeah, starting off with the basics. I suppose I drew a lot of inspiration from Bitcoin originally and Bitcoin is actually created by a sovereign network.

20:03So people have these things called ASICs that do proof of work computations that drive, that mediate participation in the network and they're used to drive consensus, a bit kind of in the role of a random number generator. So the internet computers also hosted on sovereign hardware. There are these things called node machines, which are built to standard specifications, and they're run by people called node providers. And at the moment, there's about 140 organizations, sometimes individuals, but usually companies, around the world that run these node machines at scale. And they're all over the world.

20:45Generally speaking, in vast majority, installed in co-location facilities. So it's sovereign hardware for a sovereign network. And the reason that these machines are… stop me if I get too technical, but the reason the machines are built to a standard specification is that they're grouped into something called subnets behind the scenes by the network. And these subnets replicate the compute and data of units of software that are hosted by the network. And all of these machines are required to keep up with that replication of computing data for the units of software assigned to their subnet. And, you know, if one machine was built to a substandard specification, not the public specification, and it fell behind, the network might decide that there's something, you know, wrong with that node machine, it's faulty, and it could be sort of excluded from the network and so on.

21:47So that's why they build these machines to a standard public spec.

21:55And there are a bunch of differences. So, with the exception of Bitcoin and a few other early blockchains, most what you call proof of state blockchains actually reside mostly on cloud. So, even Ethereum today, there are hundreds of thousands of validators, as they're called, like nodes that exist on Amazon Web Services. Now, if you're an old school crypto theoretician like me, you might question some of the value in that, because while it's true you're replicating the data and compute hundreds of thousands of times,

22:37you're doing so on a single infrastructure. I mean, in principle, Jeff Bezos could switch it off, right? Or it could all go down together. And in fact, Solana, which is one of the leading blockchains now, had about 40 % of its network on a European cloud called Hetzner. And overnight, Hetzner decided they didn't want Solana validators and switched them off. And they just lost that huge chunk of the network in one go. So, you know, that's why we have a slightly, first of all, a different model. We want the internet computer to run on diverse, sovereign hardware rather than on cloud. But also the other challenge with this model that proof of state blockchains have is they kind of want to give everybody a chance to create a validator because that involves people staking their cryptocurrency.

23:26And this has the effect of taking that cryptocurrency off the market. And that can help that token price because there's less sell pressure, right? All the cryptocurrency is locked up. So there's a kind of like dual purpose and that's the hidden purpose of proof of stake. And we would say that for the purposes of compute, at least, if you have a network like the internet computer focused on hosting tamper-proof unstoppable compute, it doesn't make sense to replicate computation and data hundreds of thousands of times. It's not necessary to do that, to obtain the security and resilience guarantees that the network provides.

24:10So instead within the network, it uses something called deterministic decentralization. So the network runs under the control of a sort of governance system called the network nervous system. And the governance system actually structures the network and configures it and upgrades the internet computer protocol. that runs it. But it also creates these subnets which replicate units of software. And the more subnets you have, the more units of software you can host. The subnets themselves are invisible to the software. Like if you were a unit of software and I was a unit of software and we're hosted by different subnets, we can call each other's functions directly.

24:54It's like the internet, right? Like, you know, we're actually connected. You know, this video between us is streaming over probably, I don't know, 10, 15, 20 subnets. But we don't know anything about that. You know, my laptop has an IP address, your laptop has an IP address, and that's enough, right? And it's the same on the internet computer. Like the software doesn't see the subnets. But those subnets scale out capacity. And the question is, how can you create a subnet with the minimum amount of replication? Because that's costly. But that still provides the required security and resilience guarantees.

25:31So deterministic decentralization is right. First of all, each of these node machines must come from a different node provider. I think 140 odd of these companies and sometimes individuals that run these node machines at scale. So for example, with an application subnet, which is a bit different to a fiduciary subnet, it will pull 13 machines together or provide them with instructions to run a protocol to create a subnet, right? And those node machines will come from different node providers. They will be installed in different independent data centers around the world in different geographies and different jurisdictions.

26:16So, I mean, it's common sense that obviously if the node machines came from a single provider and that provider went bankrupt, the subnet would fail. That's no good. if the provider became evil, they could do what they like, that's no good. So the node machines come from different node providers. Similarly, if the node machines came from different node providers, but they were all installed in the same data center, well, that wouldn't work because the data center could be blown up by a drone, go bankrupt or turn evil. So these node machines from different node providers have to be in different data centers.

26:52If those data centers are in the same geography, Let's say they were all around Amsterdam and Vladimir Putin put a nuclear bomb on Amsterdam. Well, guess what? That would also break because all the data centers are in the same area. So you require the data centers to be geographically distributed. And similarly, they shouldn't be in the same jurisdiction. Let's say you distributed them around Europe. And overnight, the EU decides to ban decentralized networks and they send their agents out. Well, again, it would stop working and you have to be tamper-proof and unstoppable. So the data centers not only have to be geographically distributed, but also in different jurisdictions.

27:32And using that paradigm for just basic system software, we're running it like the network runs 13x replication. I actually think there's a strong argument. It can come down to like 7x, but we'll see. and the actual numbers come from like some kind of Byzantine fault-tolerant math considerations. It has to be something called 3F plus 1, but you could do like 13, you could do 10, you could do 7. Probably that's the minimum. But of course, at every stage, you're reducing replication, reducing cost. And in the future, it'll also be possible for people running software within limits and within a framework of scaling privileges to control the replication within that framework.

28:21At the moment, like fiduciary stuff is like replicated like 50X plus. But that's how it works. And it's very effective. And it's all science-based. So the question is, what is the required replication factor for this specific unit of software's needs? And it happens accordingly, which is of course perfectly logical and the right way to do it yeah yeah so um you've got this these distributed nodes um if you're uh if if you you talked about the units uh of software do you mean that in in software terms like software a piece of software is a stack of units that work together and then you're placing each unit in a different data center and then they come together to operate?

29:24Yeah. So, I mean, let's say you're a developer and in the future, maybe you're just one of the 8 billion people on the planet that can use natural language instructions to tell the AI what you want to do in the self-writing internet paradigm. You're going to create some units of software and they're going to be installed on the internet computer. You're not concerned with where they are. I mean, in a default configuration, your software unit is going to be replicated all over the world because of the deterministic centralization concerns that I just mentioned. And you're just dealing with the internet computer.

30:05So while there is some configurability in the general case, you're not even thinking about that. You're just uploading this unit of software to the internet computer. It's actually called a canister because it's a bundle of something called WebAssembly, which is something that, or WASM, bytecode that will also run inside your web browser, and persistent memory pages. And this canister smart contract, if you want to call it that, or a canister, it can either be a complete system, like, you know, it's not going to be a social network because you have to scale the storage and compute, but it could be certainly, you know, quite a substantial complete enterprise app.

30:46Or it can be something much smaller. So if you look at like the single OpenChat, which was the first open internet service in the world, has been running for a few years now and growing steadily. Those guys, they give each individual user their own canister behind the scenes. And that canister is used to record that user's chat history, all their chat histories and stuff like that. And that's an example of a canister being used as a small unit of software within a much larger system. But there are plenty of examples where people have built pretty substantial systems that are all contained inside a single canister.

31:27And again, stormy, if I get too technical, these canisters are what is known in theoretical computing terminology as a software actor, right? And actors were, I think, first invented for use with a language called Erlang, which was a language that was very popular with telecoms companies and it could create massively scalable, resilient, and highly parallelized infrastructures. And so anyway, a software actor is something that runs in parallel with other software actors and interacts by messages. Except within the internet computer serverless cloud framework, those messages are just function calls and function call results.

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32:16And you're given the illusion that this code is synchronous, but it's not. it's actually asynchronous. And I can call your function and I'll get a result. But we're actually running in parallel and you're on one subnet and I'm on another subnet kind of thing. And an actor has private state. And in this case, the software logic runs in its own persistent memory. And I don't want to get too technical again, but on the internet computer logic and data is kind of the same thing so it's just state and instead of having a database and files you just define your programming abstractions like this is a variable like you know for example define a blog post as you know title content likes comments or whatever right and then you just define your blog as like you know something along the lines of var blog log equals array of posts, right?

33:13And it all just lives in persistent memory. And that's a paradigm called orthogonal persistence. That's another big innovation that you see on the internet computer. We've been trying to completely reimagine software in a more modern, effective form. And that actually turns out to be very important as well for working with AI when AI builds completely solo. You know, in the self-writing computer, or self-writing internet, I'm sorry.

33:42You talk about talking to a chatbot that will code a piece of software. Where does the chatbot reside? Well, so the self-writing internet's a general concept, and we're obviously developing technology that we feel enables our own version. There's a platform called Caffeine. You can't log in yet, but it's a caffeine.ai. And that is actually chatbot large language model agnostic. So in principle, any large language model could be used.

34:25And in fact, we'll probably give people a choice. That being said, number one, we are tweaking these models and fine-tuning them for the specific task at hand and so they can better use the technology, special technologies involved. And that bot could be something like a fine-tuned version of, you know, GPT-4-0, or it could be something like DeepSeq 3 or even R1, depending on needs, that's running on the internet computer itself. At the moment, the internet computer runs custom AIs. And although the capabilities are scaling pretty rapidly with people working to extend internet computer protocol to scale back the limits, currently you can run a neural network that does facial recognition very easily.

35:24You can run people already running DeepSeq, but with a very small number of parameters. Later this year, you probably get up to like, I don't know, maybe 16 billion parameters, something like that. But oftentimes for coding tasks, you want larger models. Because for example, you want them to be multilingual, because this is self-writing internet, it's a paradigm for the world. People need to be able to instruct the AI in their natural, their own native language. And the internet computer will support something called AI workers, which are kind of like, it's AI inference that's been made deterministic, that's running in replicated forms.

36:06So you can be sure it's tamper-proof. You know, that would be an alternative. So it could be, you know, on the one hand, it could be GPT-40. On the other hand, it could be DeepSeat running on the internet computer in a deterministic tamper-proof form. And there might be, you know, different, or there will be different you know, considerations like, you know, cost, um, that kind of thing. Yeah. Let's stop for a sec. So you, you said there are people running a scaled down version of DeepSeek on the, okay. So, uh, is, is, is, are the, uh, is the source code for DeepSeek and the weights divided up by function or into units and then the units are distributed or is the entire model replicated across all the nodes?

37:12I'm just trying to figure out where... Yeah, so, I mean, currently, when people are running custom AI, that it's on, you know, subnets dedicated to application logic. So it's replicated 13x. And I mentioned that probably 13x is overkill. And in the future, you can imagine subnets with lower levels of replication, but without getting technical details, the internet, there are other changes. While it's easy to create a subnet with low levels of replication, even 4X replication, there are security concerns. So there'll be some other work that's involved in updating the network so that it can handle like lower security, lower resilience subnets.

37:59But I think in the future, people might choose to run AI at like 4X or 7X replication with lower security privileges. But at the moment, it's running 13X. and generally I haven't looked into how they're doing it, but I'd imagine it's just a few canisters. A single unit of software can have up to 500 gig of persistent memory associated with it currently. But the current framework is 32-bit. It's actually, as we kind of speak, I see internet computer protocols being upgraded to support 64-bit WebAssembly, WASM compute, And so the 32-bit environment creates some limitations, and that's why you've got these models with relatively tiny numbers of parameters.

38:52But 64 bits coming as we speak, and the amount of sort of main memory, if you like, that you don't see in a canister, which can be used to store cache weights and so on, is going to be rapidly scaling. But having said that, I don't think that's suitable for self-writing internet. Self-writing internet is a mass market, will be a mass market phenomenon, and you need like AI to run much more efficiently. So I think it will actually run on these like standard models that are running on these things called AI workers within the network. That's something that's coming this year. So you'll see like different models being used in the self-writing internet.

39:36And people will often make choices based on considerations like, you know, cost and security and the ability of the model and things like that. What I will say is, you know, when we fine tune DeepSeek, we've been getting some really, really good results. You know, the best out of the box proprietary model is hands down Claude Sonnet for coding, but you can't fine tune it. You can fine tune for GPT-4O. And when we fine tune it, we can take it beyond Claude. But DeepSeq, it's quite a large model and we've been playing around with it, but the results we've been getting are very good. Yeah. So I'm correct that the model may be replicated in full across the nodes.

40:32Yeah. And to access the model, then you have to go through the blockchain. The blockchain either pulls together the different units and delivers. I mean, it's the interface between the user and the... Yeah. No, no. So that's the difference. So I think there's a lot of confusion in the space because people can't really get their head around the capabilities of the Internet Computer Network. The internet computer basically creates a single serverless cloud environment that is essentially running on a blockchain. And the reason this is hard for people to crock is that, you know, today there's no other blockchain in existence that can even store a phone photo, let alone store, you know, the hundreds of gigabytes of weights associated with a large language model and actually run a large language model.

41:31And so, you know, the confusion I think comes about that a lot of people talk about like, oh, we've got this decentralized cloud blockchain. And all they're doing really is creating a kind of tokenization and access controller. But people spin up Docker images, if you like, right, that you can run, you can acquire control of on payment of some tokens. And these Docker images sometimes, actually more often than not, actually just running on Amazon Web Services, but you're just creating like a tokenized interface to Amazon, but they can also run on people's home computers and stuff like that. I mean, the internet computers, like hundreds of people have been working on it for years, like very senior computer scientists.

42:20It's a whole different thing, traditional blockchain. Traditional blockchain is like token databases, You know, essentially, sometimes highly optimized, like Solana can process a large number of transactions a second, which have very little computer associated with them for things like meme coins. But the internet computer is a very different kind of beast. It's much more complicated, involves much deeper science and technology, and provides like a kind of network that is you know pretty unique and when you build on the internet computer you're building you know you're creating code that runs on the network itself right within this serverless cloud environment where the software is really a form of smart contracts and you know it's tamper proof, so you don't need to protect it using cybersecurity.

43:20And it's unstoppable and you can make it autonomous, which means that it can exist without a human or organizational owner and controller, either in unmodifiable form or under the control of a digital governance system. And the network is using this scheme I mentioned, deterministic decentralization, to ensure that the individual units of software are being run with the levels of security and resilience that they actually need in order to meet the guarantees that the network provides. And the Internet computer is envisaged and designed as an alternative to traditional IT. We're trying to reinvent compute.

44:03So, we want the world, currently software systems and the services and applications they create are really the foundations of modern society. I mean, there's 8 billion people on earth and they couldn't possibly be supported, kept alive without a very high degree of computerized automation. And also, things like social media are part of our everyday lives. It's how we live. And so we believe the computers are a societal foundation. and therefore it should be part of the internet itself, not part of closed proprietary private computing infrastructures. Or at least there should be an alternative and people can build on the internet rather than these closed proprietary private infrastructures like Amazon Web Services and Google Cloud.

45:00So that's our vision. The vision is that you're building on the internet. Now the internet can host software as well as connect it. And this software has new properties and capabilities, such as being tap-proof and unstoppable and optionally autonomous and so on. The whole thing is on the network. There's no traditional IT involved. It's not like a traditional blockchain that's just acting as a gatekeeper through tokenization and some very simple access control functionality to centralized traditional IT, whether that's a cloud or somebody's gaming computer in their basement, everything runs on the internet computer network itself.

45:40Right. And the nodes of the computer network are, as you said, distributed across geographies and jurisdictions and each node has a copy of the software, not just a unit. Within a subnet, yeah. So if your unit of software or the unit of software you're interacting with is going to be assigned to a subnet, and then that subnet comprises a bunch of node machines from different node providers installed in different data centers and different geographies and different jurisdictions. And that subnet is efficiently replicating the computing data of that software, but it's doing it using Byzantine fault-tolerant distributed computing techniques, which basically means that even if an adversary takes physical control of one of those node machines or some subset of those node machines, they cannot corrupt the data hosted by the subnet and they cannot interfere with its operations.

46:51And that's, of course, how you get it's the same as a blockchain in a sense. And that's how, you know, that's why running a Bitcoin node won't allow you to steal Bitcoin. Right. You're just part of a much bigger network and you'd need like half of the hashing power to more than half the caching power to corrupt it, at least in principle. So, you know, you get these guarantees. But, you know, the difference with, I think, the networks that got a cache or something like that you mentioned was, you know, what's happening there is like you've got a blockchain that has a ledger and has tokens. And that's really like giving people access control to these centralized computers, for example, a gaming PC in someone's basement or, you know, an Amazon Web Services instance, which ultimately, of course, is, you know, just running on some specific machine in Amazon Web Services data centers with a bit of virtualization going on.

47:47This is very different. Like, you know, if you install some software on the Internet computer, it has no location. its location is cypher space. And the network dynamically decides where its data is and computation is replicated. So these subnets, by the way, I mean, the membership of these subnets is dynamic. Like the network can add new nodes as needed. It can remove failed nodes or remove them for other reasons. If a subnet is overloaded, it can actually split it into two subnets by spawning to divide the load dynamically. And so, if you ask like, where is this software that's been installed on the internet computer, or even where is this AI model that's been installed on the AI computer, on the internet computer?

48:37The answer is it's all over the world, right? And it's particular location is also dynamic. It can change based on what the protocol does, which has this thing called the network nervous system, which kind of centralized governance system that actually has automated control of the network and can add nodes to subnets, remove nodes, create new subnets, split subnets, that kind of thing. So really, what's the location of software and data on the internet computer? Cypher space. Yeah. And you have this, what's the incentive for the node operators? You have this concept of reverse gas. Yeah. Can you talk about that?

49:18Sure. So on a traditional blockchain, like Ethereum, when you interact with a smart contract, you have to pay some gas to pay for the computation. And gas on Ethereum is like fuel for computation. So with a traditional blockchain, every transaction is crafted manually by the user. So you have a wallet like MetaMask and you craft this transaction that will call into a smart contract. And when you craft that transaction, you specify how much you'll pay for the computation. And there's a kind of fee market. And so you add the gas as part of the transaction effectively. And then using the key that the wallet holds, you press send, it gets sent to the network and you get told when it's executed.

50:17So very clearly, if you have to manually create every function call to a small contract using your wallet, this can't be used as a basis for building a social network. You need small contracts that can not only run much more efficiently and scalably in many orders of magnitude, but that can do things like process HTTP to create interactive user experience. So you have to, you know, the whole thing is re-architected and re-imagined. On the Internet computer, there's a scheme called reverse gas. And that means that the software pays for its own computation. And it does so using something called cycles, which are analog to gas on Ethereum.

51:01And it's, you know, the best analogy is that it's like an electric car. So if you have a Tesla, you know, you plug it in to charge up the battery and you drive around as it drives around the battery gets depleted and you have to plug it in again or if you're on the move go to a super charging station or something like that right and um software on the internet computers um kind of similar you charge it up with these things called cycles um as it performs computations and stores data in its memory and so on it depletes these cycles um if it runs out of cycles it stops working um and you've got like three months to fill it up before it gets scavenged, right?

51:44But anybody can fill it up. Like, say you're a bit of software and I'm using you and you run out of cycles and stop working. I can send more cycles and you'll start working again. So the tokenomics works as follows. There are these things called ICP tokens, which are multi-purpose kind of utility token. They They play the role of cryptocurrency within the network. And they also allow you to participate in governance, like you can stake them to create a voting neuron within the network nervous system. But for the purposes of understanding the basic economics, number one, you can convert these ICP into cycles.

52:24And the network is aware of the value of ICP because it has Oracle functionality. And ICP tokens worth one XDR, an XDR is a standard drawing right of virtual currency defined by the IMF. I don't know what it's worth now, but last time I looked, it was like, you know,$1.40 or$1.50, right? And if you convert ICP tokens worth one XDR into cycles, you get a trillion cycles. And cycles give you a predictable amount of compute. So it's like electricity. So, it's like that you know that it's going to cost you so much to charge the battery of your electric car with this amount of electricity kind of thing.

53:11So, the computation on the network creates demand for ICP, ultimately, the ICP token, which is named after the protocol, Internet Computer Protocol, because people having to to convert ICP tokens into cycles to power their compute in the mode of an electric battery using the reverse gas model. On the other hand, the network, so that's deflationary. On the other hand, the network mints new ICP tokens to reward people, not directly, but reward people participating in governance who can generate ICP through a mechanism. And it also mints new ICP for these people running the node machines. But it's not like a traditional blockchain where they're sort of speculating.

54:08The governance system of the network is setting expected costs for purchasing node machine hardware, co-locating it, operating it, paying for the bandwidth and so on. And the network decides that they should get a certain return over four years. And then ICP is being issued in varying amounts, depending on its current price, in order to cover the, you know, or to remunerate the node providers. And of course, if you think about it, this is completely necessary because node providers you don't have fixed costs. You know, they have to, like a node machine costs you about$20 ,000 to build and some of them are operating quite large numbers of them.

55:01You have to co-locate it. So you have to have contracts with data centers. They're consuming bandwidth. Again, you've got to have a bandwidth contract. So in order to have a stable network, the network remunerates them in a predictable way. And then the network also modulates the remuneration available in different areas of the world, not only with respect to differing costs, but also to create incentives to deploy these node machines in different parts of the world. Because the network relies on decentralization, just like the internet. So, for example, compute might be a bit more expensive in Singapore, but initially at some point the network was not only willing to pay that, but a bit more to incentivize people to deploy these machines in Singapore and data centers.

55:58But if you look at the dashboard of the internet computer, you'll see there's no machines installed in data centers all over the world, like this one in South Africa. There's a data center in South Africa hosting node machines now. There's one in Panama or something. So they're all over the world. And the network nervous system, which is setting these kind of policies with respect to how much financial re-ineration you receive in real terms, is not only making sure that these node providers can run these machines in a stable way, but also creating these financial incentives to maximize the decentralization of the network, which in turn enables it to create, you know, tamper-proof, unstoppable, host tamper-proof, unstoppable software to reduce cost because it needs geographical and jurisdictional decentralization.

56:53Yeah. How many node machines do you have right now? And is there a sort of a critical mass that you need to make this viable? And how does someone use the internet computer? Well, like if I wanted to use it, what do I do? So I think there are like 1500 of these machines around the world at the moment. Actually, not all of them are used. Most of them are just kept in a pool. And so that if there's a spike in demand, there's some kind of safety buffer that allows the network to scale up quickly. But to use the internet computer simple, you just interact with it over the internet. And that might sound mysterious.

57:43How can that be? How can that work? Because the software is not in one place, it's in lots of places. Well, the network incorporates these subnets, but actually there's a sort of perimeter called boundary nodes.

58:01And these, you know, and default domain names, so each unit of software actually has its own kind of URL, right? And when you interact with the internet computer, dynamic DNS will connect you, first of all, I think, to a boundary node that's nearest to you, so you get the lowest possible latency. And then the... I'm oversimplifying here, but the boundary node then will forward your request and the response that results from your request to the replica in the subnet hosting the software you're interacting with. That's kind of nearest to you in terms of minimum latency, right?

58:49And so, you know, it's the domain name system and the routing of the boundary nodes perform determine which individual replica you're interacting with. But of course, your compute, when you submit a function call that changes memory called an update call, of course, it's replicated across all nodes. But sometimes you just want to perform a query that doesn't need to modify memory and so on. And that's done quickly by this kind of routing based on latency. But of course there are other considerations too, because individual replica inside a subnet node might be down, be faulty in some way. There are load balancing issues.

59:31It doesn't make any sense if you've got something hosted on a subnet and let's say this piece of software is very popular in South Korea, right? and it turns out the subnet's got like one node in South Korea. Yeah, of course, that's going to produce the lowest response time for kind of query computation. But if all that massive load just goes to one replica in the subnet that's in South Korea, then it could get overloaded. So you have to have some clever logic that will at some point begin distributing these requests to other replicas in the subnet. and you have to have things like, you know, DOS protections and rate limiting for individual IP addresses that might make requests.

1:00:18And so, you know, in actual fact, behind the scenes, it gets pretty complicated, but at a high level, that's how it works, yeah. Yeah, and so is there a URL that people access to? So I think that, I don't know if by heart, but, So by the way, when you've got a piece of software on the internet computer, there are standard bits of software you can just load a website into. So if you go to internetcomputer.com, which is the website for the internet computer that we maintain, that website is actually hosted on the internet computer. And so you can map your own custom URL, your own custom domain name to your software on the internet computer.

1:01:04But with respect to uploading that software, you know, there's a developer kit called DFX. And, you know, when you create software that's going to be installed on the Internet computer, there's some magic going on behind the scenes. It's interacting with various URLs. And then, you know, through that process, your software will get an ID. And this will kind of determine, like, future URLs you interact with and things like that. But that's all hidden. The user experience is just this thing called the Internet Computer. It's part of the Internet. You don't have to worry about how that works. If you've got an Internet connection and you've got the software developer kit, you can deploy code on it.

1:01:51If you want to go to the Internet Computer website, you just type in internetcomputer.org, and it's served off the Internet Computer. That first open Internet service I mentioned, OpenChat, It's very cool. And you just type in oc.app, I think. And that's mapping behind the scenes to some underlying network resident software URL. But you as a user don't even know. I mean, what has actually been one of the problems we've experienced is that people don't know when something's on the internet computer. And in this world of Web3, there was this kind of slight subversion of the meaning of on-chain. So people will say, oh, look, the social media service or this whatever is on Solana, it's on Ethereum, right?

1:02:47It's on-chain. And Coinbase has this tagline, on-chain is new online. And people, when they hear that, they think those things are running on the blockchain. But it doesn't mean that at all. It's like a subversion of the original language I used as far as back as 2015, 2016. What it means for them is that it's built on Amazon Web Services or Google Cloud or something. And it's on-chain because it has an associated token. Like, it's a bit like, you know, I have tokens and so I'm on-chain kind of thing. The problem is, you know, we did surveys and it's like more than 95 % of people when they hear this language.

1:03:25And I'm talking about crypto journalists, mainstream journalists, crypto investors, mainstream investors, developers, DGNs. When people hear this language like, oh, this is built on blockchain XYZ, they think that blockchain XYZ is really like the Internet computer. And in actual fact, it's nothing like that at all. It's just it's a token database and it's holding an associated token for this completely centralized thing running on cloud service. But the thing is like, you know, and then people can interact with OpenChat, OC.app, and it's this highly interactive kind of, you know, social network chat service that is completely autonomous, runs under the control of a decentralized governance system.

1:04:09Like the community actually runs its own community, runs the service itself. There's no back doors, like there's no back door at all. And it's coming off the internet computer and you can make it, use it as a progressive web app. And the problem is that people see that and it's like, well, that's Web 2 functionality, right? And they don't understand the difference. That thing is running on the internet computer on a decentralized network.

1:04:39And this other thing that's also described as being built on a blockchain, they have a different meaning for on-chain. What they mean is it's built, it's completely centralized and run by developers on a cloud infrastructure, but it has an associated token that's on the blockchain that really functions as a decentralized token database. And these are very, very different things, but the use of that language, this on-chain language has confused the hell out of people. Nobody understands. And when you try to explain, hey, this blockchain, you can't even store a phone photo on it. It's really just designed for DeFi and tokens, maybe like access control, like this, a cash thing.

1:05:22Like people look at you like you're from Mars. They just can't grok it because the language originally, like on-chain, it's like saying on cloud, right? If someone says it's on cloud, well, you know it's built on cloud. So on-chain should mean it's built on-chain, but that's not how they mean it. They mean it like centralized, built on Amazon Web Services or Google Cloud or something like that. And there's an associated token. And then you try to explain that, and it's really tough. And, you know, when we say on chain or on the network, you know, it's the real, it's the literal, but we don't know what to do because I mean, I was, you know, really early pioneer of this kind of stuff.

1:06:03And, you know, I probably have people trying to fully on chain and stuff like that. And now this language that we had in like early days has completely changed. But the problem is it's not clear anymore. Like how do you, you know, the context of the internet computer, what language do you use now to explain the difference? We're kind of like completely just stuck. And, you know, we found that even like, you know, I'd spoken to like managing editors of very major mainstream publications, managing editors of crypto. I had one shocking interview where someone connected us. And after about 20 minutes, I've been explaining this vision of extending the internet.

1:06:47So not only does it connect software, it hosts software, and this new kind of software is tamper-proof and unstoppable and all these amazing things, and you can create open internet service. And I could see the guy was looking bad tempered. So I paused. I do talk too much. It's true. I paused and looked at him. And he had a real scowl on his face, and he shrugged his shoulder. And he said, so what's new? And I said, what do you mean, what's new? He said, well, Ethereum and Solana, they're decentralized clouds too. So what's new? And it was like, I realized like the people like this language has confused people.

1:07:23And I let's be honest, it probably was designed to confuse people. Right. And it was an overloading of the language that didn't need to be made. Like on-chain had a very clear meaning. Like why did on-chain have to change to mean some kind of centralized thing under the control of a bunch developers that has an associated token. It doesn't make any sense. But the language is so pervasive and it's supported by all the venture capital backers of these projects that have an associated token, all the crypto press, all the crypto industry research, which of course tends to be

1:08:00sometimes supporting vested interests and so on.

1:08:05People can't believe it. And it's fooled everybody. This is the incredible thing. Even people who are managing editors of crypto, huge international publications have been completely misled and confused by this terminology of on-chain, this overloading and change to mean having an associated token. So it's very tough for us because what language can we use to explain this very fundamental and important difference? I mean, these are completely different things, right? And similarly, the other one we had, a lot of it is this kind of idea of decentralized cloud. For us, what we mean when we say decentralized cloud is like the cloud itself is decentralized.

1:08:54And it doesn't have, when you're putting software into this serverless decentralized cloud, or an AI model or whatever it is, it doesn't have a location. It's in cypher space. and you're guaranteed that the logic will run as written against the correct data. It's tamper-proof, immune to cyber tech. Nobody has backdoor access to it. It's unstoppable. You can make it autonomous and a bunch of other stuff, right? But other people, when they talk about a centralized cloud, what they really mean is that there's a blockchain with some kind of tokenization and access control that gains you access to the cloud computing that's completely centralized, right?

1:09:33It's running on someone's gaming PC or it's an Amazon Web Services instance that someone is connected to the blockchain. But when someone says decentralized cloud, what you imagine is that the compute is decentralized, not that there's a blockchain gating access to centralized compute. Because centralized compute can be switched off. It can be corrupted by whoever's running it and got the keys to it. It's certainly not tamper-proof. It's certainly not unstoppable. It can't be autonomous because autonomy implies no human or organizational control, like just controlled by logic. And so, you know, we do struggle, like we really do struggle.

1:10:08And I think the other piece is just like, you know, people, well, how is it even possible? And, you know, I mean, it's a technical area. I mean, we discussed deterministic decentralization and how deterministic decentralization enables you to run with less replication, run this host, the software with less replication while still delivering on security and resilience guarantees. But, you know, there's a lot more to it than that. And of course, when you're talking about something like the internet computer, it's non-trivial. We have hundreds of people we work. I think at this point, very significantly, more than 1 ,000 person years of R &D has been dedicated to the effort and we've been going for years.

1:10:49And that's just, again, very different. Like, you know, you get different results if you're willing to invest that much in R &D than if you're just copy-pasting an existing blockchain and making some tweaks and rebranding it. But it's, again, very, very difficult because of the noise in Web3 to actually communicate to people the profound nature of the differences. Yeah. And you mentioned, for people that want to explore this, you mentioned two URLs. You said internetcomputer.com and internetcomputer.org. Are those aliases for the same? No, just internetcomputer.org is a website and you can get a lot of resources like developer resources and things like that.

1:11:33And then there's a new one. I think it's just a deck at the moment. So people are interested in the self-writing internet. You can find that icp.ai, but I think it's just deck.icp.ai at the moment. But actually, there's a great URL to get started. It's internetcomputer.org slash library. And if you go to internetcomputer.org slash library, you can find all kinds of things. You can find in a nutshell primers, like short introductory documents. You can find decks covering like the base network, but also things like self-writing internet. I think there's about 20, if people want it, there's about 20, you know, academic papers out there that talk about some of the underlying, you know, not only the overall architecture employed, but also some of the underlying mathematics, which is actually very beautiful and interesting, but sometimes quite complicated.

1:12:30Yeah. Okay. So internetcomputer.org slash library. That's where people should go. Great place to start. Yeah. I'm past the point of looking for jobs, but I'm not past the point of looking for people to hire. And when I need to do that, I turn to Indeed. Imagine you just realized your business needed to hire someone yesterday. How can you find amazing candidates fast? Easy. Just use Indeed. When it comes to hiring, Indeed is all you need. You can stop struggling to get your job posts seen on other job sites because Indeed's sponsored jobs help you stand out and hire fast. With sponsored jobs, your post jumps to the top of the page for your relevant candidates so you can reach the people you want faster.

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Dominic Williams’ Bold Vision for The Internet Computer (ICP) | The Future of Decentralized Computing

 

The internet is broken—can blockchain fix it? In this episode, Dominic Williams, the visionary behind The Internet Computer (ICP) and founder of DFINITY, reveals his plan to build a decentralized alternative to cloud computing. Discover how ICP is challenging Big Tech, replacing traditional IT infrastructure, and creating a tamper-proof, autonomous internet powered by smart contracts.

 

What You'll Learn in This Episode:

  • Why Dominic Williams believes the current internet is flawed

  • How ICP aims to replace centralized cloud providers like AWS & Google Cloud

  • The role of smart contracts in making the internet more secure and censorship-resistant

  • The mission of DFINITY and how it started in 2016

  • The future of Web3, decentralized applications (dApps), and blockchain governance

 

Don't miss this deep dive into the future of the internet! If you're interested in blockchain, decentralization, and the next evolution of the web, this episode is for you.



Stay Updated:

Craig Smith Twitter: https://twitter.com/craigss

Eye on A.I. Twitter: https://twitter.com/EyeOn_AI

 

(00:00) The Origins of The Internet Computer  

(02:57) Dominic Williams’ Background in Tech  

(04:28) Early Innovations in Distributed Computing  

(07:08) The Birth of a 'World Computer' Concept  

(11:22) Reimagining IT: A Decentralized Alternative  

(13:45) The Creation of DFINITY and ICP  

(16:29) How ICP Differs from Traditional Blockchains  

(22:05) The Problem with Cloud-Based Blockchains  

(25:35) How ICP Ensures True Decentralization  

(29:25) AI & The Self-Writing Internet  

(35:24) How ICP Hosts AI & Smart Contracts  

(40:23) Understanding Reverse Gas and ICP’s Economy  

(45:03) The Vision: A Truly Decentralized Internet  

(49:09) How To Use The Internet Computer  

(52:01) The Role of Nodes & Incentives in ICP  

(56:53) The Future of Web3 & Decentralized Applications  

(01:05:49) The Misconception of ‘On-Chain’ & Blockchain Hype 

 

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