● The Network Nervous System (NNS) is the brains that control the computers of the Internet - an algorithmic governance system that allows holders of ICP tokens to vote on proposals and recruit independent data centers for the network
● The Sodium version of Internet Computer reveals novel algorithmic governance and token economics, and enables these concepts to be used to build open Internet services for DeFi and dapps, as well as secure ultra-large-scale pan-industry enterprise systems
● Sodium is the final milestone before the official launch of the Internet Computer this year, when it will be part of the public Internet
Palo Alto and Zurich, September 30, 2020 — The DFINITY Foundation today announced the Network Nervous System (NNS), an open algorithmic governance system that controls Internet computers and acts as their brains. This milestone is called the Sodium (sodium) network, which reveals novel algorithmic governance and token economics that can be used to build DeFi, open Internet services for dapps, and enable ultra-large-scale pan-industry enterprise systems to operate safely. Most importantly, Sodium is the final milestone before the official launch of the Internet Computer in the fourth quarter of this year, and once released, it will become part of the public Internet.
Dominic Williams, founder and chief scientist of the DFINITY Foundation, said: "NNS means that the main functions of the Internet computer are now completed. It represents a significant moment in the history of the Internet, because for the first time, Internet services will be able to operate in a completely independent, decentralized manner. This is a technical solution to the systemic problems caused by the monopoly of the Internet by technology giants, bringing the concept of programmable networks back to the public view. The Internet should be a completely open public service. NNS is like The catalyst for an open internet that will bring us the open internet promised in the 1990s will ensure that the future of the internet remains open and free."
Tech giants distort the way we use the web, monopolize top wealth, and limit innovation, entrepreneurship, and ownership of Internet services. Internet Computer, a blockchain computer powered by a network of independent data centers, would allow software to run anywhere on the internet, rather than on server farms controlled by Amazon, Google and Microsoft. It cuts costs by eliminating the middle link from storage to middleware to firewalls. It allows the creation of tamper-resistant software, thereby eliminating security risks and pitfalls. Internet computers could completely replace the $3.9 trillion IT stack in operation today.
The Internet computer returns the ownership of the Internet to the masses, which is even more important now. As we all know, the Internet has become an essential public service for human life. With each major event ensuing this year, the tech giants have tightened their ever-tighter grip on the internet. They have a monopoly on the growth of the Internet — an Internet that was designed to be open and free, but is now controlled by the greed and monopoly tendencies of the tech giants. The Internet computer will end this chaos and provide an open Internet service platform that is not bound by enterprises; at the same time, it is completely decentralized to ensure that the Internet computer can operate independently of any corporate or political interests. The download is constantly updated.
Dominic Williams, Founder and Chief Scientist of the DFINITY Foundation said: "Sodium is the last milestone before Mercury, the public Internet computer network that will be available later this year. Internet Computer Dedicated hardware has been running in many independent data centers around the world, and is supporting various developers and entrepreneurs through hundreds of nodes, including MMO games to various enterprise platforms in pan-industry, etc., to combat counterfeit goods and integrate financial services Goals like decentralization.”
Below is a detailed introduction to how the Network Nervous System (NNS), token economics, and Internet computer governance operate.
About DFINITY
About DFINITY
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press contact
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how it works
how it works
ICP token and cycles (similar to gas on Ethereum, points on AWS, etc.)
When the public internet computer launches, there will be 469,213,710 ICP tokens (formerly known as DFN) to govern the network. ICP tokens will be used in two ways:
First, ICP tokens will be used to create new "cycles," the fuel that runs software on computers on the Internet. Software hosted on Internet computers must consume cycles in order to run. This fuel is consumed by the software during its normal operation. Therefore, software operators will acquire ICP tokens directly or indirectly (through third-party services) and use [consume] them to create cycles, which will disappear after being used for computation. Essentially, ICP tokens can be purchased on financial markets to create cycles and be consumed, which in turn leads to a decrease in their supply. To create a cycle, you must spend ICP tokens, and the amount of ICP tokens you need to spend varies, so the actual cost of creating a cycle is fixed (for example, a trillion cycles cost 1 Swiss franc). Since spent ICP tokens are gone and cycles are consumed when you use them to fuel the software, the whole process is deflationary and balanced in this way.
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DeFi
One of the main issues plaguing DeFi so far is the lack of a stable store of value within the ecosystem. Roughly speaking, the situation is analogous to the fact that the current financial system has no cash, so assessments of value must constantly shift from one volatile asset to another. Stablecoins are meant to track the value of non-volatile assets like the U.S. dollar and aim to solve that problem. Unfortunately, today's "stable" coins are not only that, but they are not as effective as they should be.
"Cycles" of internet computers have a stable value and thus can be used as stablecoins. The value of cycles is maintained by using an entirely new and simple method that ensures that the value of cycles gradually returns to the value of the currency to which it is pegged (currently Swiss francs) as long as the internet computers continue to host the software that performs the calculations.
Essentially, the Internet Computer allows cycles to be created by consuming ICP tokens at a variable rate of choice, so 1 trillion ICP tokens can be generated by consuming 1 CHF. This means that 1 trillion cycles will never cost more than 1 CHF. On the other hand, if a financial exchange sees a lot of cycles, causing its price to drop below the peg, then software operators will start buying those cycles as fuel for their software as it becomes cheaper. Therefore, eventually, all remaining cycles in the exchange will be consumed in the calculation process, and the cycle cost will return to a fixed level. Since market makers and investors understand this well, they buffer such markets to profit from liquidity.
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Governance
ICP tokens can be used to participate in governance. The Internet computer network is controlled by an algorithmic control system called the Network Nervous System (NNS), and ICP token holders can lock their tokens within the Network Nervous System to create "neurons" that can control proposals that affect network operations. Vote and get extra ICP tokens in return.
Since neuron holders have locked their tokens in the governance system, they are very concerned that the governance system adopts the correct proposal, otherwise their value may be negatively affected. However, neuron holders can set their own voting behavior by listening to other neurons they trust, so that they don't have to manually vote on every proposal - because many proposals are received every hour.
Some examples of proposals include: the structure of the management network or for splitting up existing overloaded subnets and creating new ones. Others simply upload data that the network uses in their algorithms, such as the current price of ICP tokens on exchanges, which allows the network to create cycles at a fixed cost by simply consuming the appropriate amount of ICP tokens. Governance systems can also freeze malicious systems that could devalue the entire network, such as illegal marketplaces or social media forums that promote harmful behavior. Although such actions may be only a few extreme cases, the greatest value of the network is its freedom and Maximum inclusiveness.
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data center
In the independent data center that supports the special node hardware that runs the Internet computer network, each node machine that is running normally will receive a fixed reward, so that their income is proportional to the number of nodes they are running.
In addition, the operation of node computers does not grant any authority in the network governance system. To do this, data centers must also lock ICP tokens within the Network Nervous System (NNS), for example, locking ICP tokens to create neurons within the governance system.
Finally, as the capacity of Internet computers increases, independent data centers can register their machines as future network nodes of the Internet computer NNS, and the data centers will be paid with ICP tokens, which will cause inflation (cycles need to consume ICP tokens Coins are created, which is a process of deflation), and ICP tokens are converted into fiat currency or locked tokens to create neurons, so as to participate in governance and obtain additional ICP tokens as voting rewards.
