What happened to Dfinity, the “king” of the market, which lost 95% of its market value in 45 days?

What brought the once “king” project down to such a state?

It was once touted as the third great innovation in blockchain after Bitcoin and Ether, and it had received huge funding from star investors such as A16Z and Polychain, and after its launch, many leading exchanges rushed to launch its tokens.

As one of the most anticipated public chains this coming year, Dfinity has been out of the limelight.

However, its performance after the launch of its mainnet has caused people to shake their heads in disbelief.

What happened to Dfinity, the "king" of the market, which lost 95% of its market value in 45 days?

In just 1.5 months, the price of the Dfinity token ICP has fallen nearly 95% from its high point. What brought the once “king” project down to this level?

Some people posted that the Dfinity team locked up other people’s tokens, but sold $600 million worth of coins themselves.

What happened to Dfinity, the "king" of the market, which lost 95% of its market value in 45 days?

Note: The original post is by r/ICPTrader user romeotangoxray.

What is stopping the expansion of the IC (Dfinity) network?
Despite repeated attempts to get Internet Identity to work on Mac mini and Windows 10 systems (and reading numerous tutorials), I found that Internet Identity only works for users who have an iPhone or a MacBook with biometric authentication, or who use separately purchased hardware, such as Yubikey.

But in many countries, the vast majority of people can’t afford an iPhone (let alone a MacBook), and very few people are willing to buy a Yubikey.

Is this how we reimagine the Internet?

According to Dfinity’s response, we’ve been told that some “cheap Android phones” will also support Internet Identity, and we’re waiting for a list of specific brands and models to help verify this statement.

In response to the above question, Dfinity stated that Internet Identity is not required and that developers are free to use older password systems. According to Dfinity’s response, we were told that a “bridge” to existing authentication systems other than Internet Identity is possible. But whether the login is through Google, Open ID, or Apple, it was not disclosed how this external code module would be securely deployed and run outside the container, nor was it disclosed that many claims were vague.

Dfinity eliminated the lack of alternative authentication methods by stating in their FAQ.

“Some of our community developers are building different authentication models for Internet computers that do not use WebAuthn.”
https://dfinity.org/faq/internet-identity-and-nns-app-faqs

Is it reasonable to address authentication as a core requirement of any network, especially one that handles user funds and claims to provide basic services, yet Dfinity delegates much of this need to “community developers”?

Of the 40 projects on the IC network, which applications will allow users who cannot afford an iPhone or Yubikey to continue to participate and become full members of the IC network?

The arrogance behind IC is really so big that they don’t see the need for a bridge to the existing services we have today on the “traditional” Internet? Is anyone really stupid enough to think that Dfinity will snap its fingers and everyone will move to the new Internet?

It is an illusion to think that the IC can scale to millions of applications, or even billions of users, and today, we cannot simply stop using the existing Internet.

Node Barriers
On another note, IC node hardware is so expensive that only dedicated data centers can deploy such node hardware at scale, except for a few wealthy enthusiasts.

However, Lara Schmid, a researcher at Dfinity, claims that

“Eventually, Internet computers will run millions of nodes at scale.”
https://medium.com/dfinity/the-network-nervous-system-governing-the-internet-computer-1d176605d66a

And at the time of this writing, there are only 161 nodes on the Dfinity Internet Computer network: the

What happened to Dfinity, the "king" of the market, which lost 95% of its market value in 45 days?

How will this network scale to millions of nodes? Who will pay for these nodes?

If ICs had bridges to the existing Internet, the cost of this transition could be managed by temporarily using hybrid services running on existing cloud infrastructure (AWS, Azure, etc.), but given the restriction that containers (canisters) cannot invoke the open Internet, it seems that the story of Dfinity here is that everyone will magically deploy and switch to their “new” Internet without having to consider the cost of suddenly abandoning a “legacy” system.

Author’s Note: At the time of writing, Dfinity did not respond to this topic.

Where are the killer applications for Internet computers? Who exactly is using the network, and is the number of such users growing at a significant rate?

The following is a list of some 40 IC-related projects.

Let’s see, we have Capsule Social, an application that claims to replace Twitter?

Politics aside, such an app is clearly not talking about a killer.

Dfinity should probably be glad there is no killer app for IC today, because if it came along, it would probably kill the network (there is currently a very limited rate of deployment of new nodes on IC).

“Node provider approvals can take weeks to process requests, purchase hardware, and select data centers. Hardware manufacturing is currently under tremendous market pressure, which is exacerbating global shipping delays. Node procurement, deployment and configuration can take 2-3 months.”
https://support.internetcomputer.org/hc/en-us/articles/4402238347028-How-long-does-it-take-to-be-accepted-as-a-Node-Provider-

If any application on IC spreads like a virus, it would be a disaster for Dfinity — 100,000 orders of magnitude of users on their 161-node network might be manageable, but what if it’s a million users? Not to mention 100 million users. Why is it that the industry’s “best minds” are working at Dfinity, but they haven’t figured out how to fully automate the addition of new nodes to the IC network?

The “traditional” cloud has been automating node deployment for years – AWS just needs a credit card with enough credit to instantly add almost unlimited horsepower to their network. Maybe Dfinity’s ivory tower needs some fresh air?

Author’s note: Dfinity tells us that adding nodes is intentionally not automatic, and that nodes must be voted on by the network nervous system (NNS). So what happens when a killer application comes along that needs thousands of new nodes to rapidly scale the network?

Does the world really need another walled garden? Do all applications need to be voted on by the NNS in order to enter the “verified” part of the IC network? In addition, if an application is rejected, there may be a “small fee” for applications that the NNS (or Dfinity?) deems “troublesome”.

“To avoid being inundated with useless proposals, users who submit proposals must pay a small fee if the proposal is rejected.”
https://medium.com/dfinity/the-network-nervous-system-governing-the-internet-computer-1d176605d66a

Requiring all apps to be approved by Dfinity’s NNS voting platform before they can enter the verified network is another walled garden, just like the Apple, Microsoft and Google stores we already have now.

In summary
If the purpose of IC is to allow us to reimagine what the Internet is, that’s a wonderful desire, but that goal requires that IC be scalable and accessible to everyone.

The last thing the world needs is another way to divide us into “haves” and “have-nots.

But when I raised these concerns, one IC proponent casually offered a tired excuse: “IC is only five weeks old.

“IC is only five weeks old, give it some time.”
That’s ridiculous, after all these years of raising the above issue without being recognized by 200 of the world’s leading researchers?

Maj. Eaton: We have the top people working on it now.

Indiana: Who?

Maj. Eaton: The top …… people.

Does Dfinity have any answers?

“Smart contract code will rule the world” – from the Dfinity homepage.
No, it’s all just talk unless we can solve some tough problems.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/what-happened-to-dfinity-the-king-of-the-market-which-lost-95-of-its-market-value-in-45-days/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

Like (0)
Donate Buy me a coffee Buy me a coffee
Previous 2021-06-27 07:22
Next 2021-06-27 09:16

Related articles