Business Archives - Page 2 of 8 - Blockchain Guide for Everyone

Harnessing Fintech and Stablecoins for a Resilient Digital Economy

In today’s digital age, the financial world is evolving at an unprecedented pace. The convergence of financial technology (fintech) and stablecoins is creating new opportunities for inclusion, efficiency, and innovation. From decentralized finance (DeFi) and cross-border payments to programmable money and regulatory sandboxes, this transformation is reshaping the global financial system.

This article explores how fintech and stablecoins are building a more resilient digital economy—and how countries like Malaysia, Singapore, and Hong Kong are positioning themselves at the forefront.

💡 What Is Fintech?

Fintech refers to the use of digital technologies to enhance, automate, or reinvent financial services. It spans everything from mobile banking and digital wallets to blockchain, AI-based risk scoring, robo-advisors, and beyond.

🚀 The Evolution of Fintech:

Fintech 1.0: Telegraphs and ATMs marked early automation.
Fintech 2.0: SWIFT, credit cards, and online banking digitized financial systems.
Fintech 3.0: Smartphones enabled peer-to-peer payments and crypto adoption.
Fintech 4.0: Today’s innovations include Web3, artificial intelligence, DeFi, and stablecoins.

Fintech democratizes access to finance and streamlines services across sectors, especially in underserved markets and emerging economies.

💳 Digital Payments: A Global Shift

The move toward cashless economies is accelerating. Digital wallets, QR code payments, and contactless transactions are becoming the norm.

📱 Popular Wallets: Apple Pay, Google Pay, Alipay, Touch ‘n Go, WeChat Pay
🌐 Growth: Over 60% of global e-commerce payments are expected to be made via digital wallets by 2026.

This shift enhances convenience, lowers transaction fees, and supports financial inclusion—especially in rural and mobile-first regions.

🔗 Blockchain and Decentralized Finance (DeFi)

Blockchain technology provides the foundation for decentralized systems that are secure, transparent, and resistant to tampering.

It powers:

Cryptocurrencies like Bitcoin and Ethereum
Smart contracts that self-execute financial logic
DeFi platforms for lending, borrowing, and trading without intermediaries

Together, blockchain and DeFi are redefining how finance is conducted—offering 24/7, permissionless access to capital.

🪙 What Are Stablecoins?

Stablecoins are digital currencies designed to maintain a stable value, usually pegged to a reserve asset like a fiat currency, commodity, or algorithmic model. They serve as a bridge between traditional and decentralized finance, offering the speed of crypto with the predictability of money.

📌 Why Stablecoins Matter:

Reduce price volatility
Enable global remittances and real-time payments
Power smart contracts and DeFi ecosystems
Act as a store of value in high-inflation economies

🧱 Types of Stablecoins:

Type	Backed By	Examples
Fiat-backed	USD, MYR, etc.	USDT, USDC, FUSD
Crypto-backed	ETH, BTC (overcollateralized)	DAI
Commodity-backed	Gold or other assets	PAXG
Synthetic/Algorithmic	Derivative-based	USDe (Ethena)

🌟 Major Stablecoins in 2025

1. USDT (Tether)

The most widely used stablecoin globally
Pegged to USD, backed by mixed reserves
Ideal for trading, DeFi, and fast settlements

2. USDC (USD Coin)

Issued by Circle; fully backed by U.S. dollar reserves
Highly regulated, widely adopted across platforms
Preferred by enterprises and institutions

3. DAI

Decentralized stablecoin issued by MakerDAO
Collateralized by crypto (ETH, USDC)
Maintained via smart contracts and governance

4. FUSD (Frax USD)

A partially algorithmic stablecoin transitioning to full collateralization
Known for yield-bearing integrations in DeFi

5. USDe (Ethena USD)

Synthetic stablecoin backed by hedging strategies
Offers capital efficiency, gaining traction in modern DeFi

6. PAXG (Paxos Gold)

Tokenized gold asset; each token backed by one ounce of gold
Combines crypto liquidity with physical value

🔧 Real-World Applications of Stablecoins

💰 DeFi Lending and Borrowing

Platforms like Aave and Compound use stablecoins for peer-to-peer lending—offering liquidity, yield generation, and financial access.

🌍 Cross-Border Payments

Stablecoins eliminate FX fees and delays, allowing businesses and workers to transact globally in seconds.

🛒 E-Commerce and BNPL

Buy Now Pay Later services can be built using smart contracts and stablecoins, enabling instant approvals and programmable repayments.

🧾 Payroll and Gig Economy

Freelancers and gig workers can receive salaries in stablecoins, offering fast and borderless compensation.

🏠 Tokenized Real-World Assets

From real estate to commodities, assets are being tokenized and traded using stablecoins as a secure, liquid medium of exchange.

🏛️ Regulatory Highlights & National Projects

Countries are moving quickly to regulate stablecoins while fostering innovation. Here’s how Malaysia, Singapore, and Hong Kong are leading in Asia:

Malaysia – Blox: Ringgit-Based Stablecoin (Proposed)

Blox is a Ringgit-backed stablecoin concept under review by Bank Negara Malaysia (BNM).
It aims to power e-commerce, DeFi, and cross-border payments using a localized, compliant digital currency.
May be tested under Malaysia’s Fintech Regulatory Sandbox.
Seen as a key tool for Shariah-compliant digital finance and boosting financial inclusion.

Malaysia’s cautious but inclusive approach emphasizes domestic utility, compliance, and Islamic fintech potential.

Check it out at https://app.blox.my/signup?invite=BLOX-3a38e5

Singapore – Project Orchid: A Global Blueprint

Project Orchid is a stablecoin regulatory framework launched by the Monetary Authority of Singapore (MAS).
It includes requirements for:
- 1:1 fiat reserve backing
- Guaranteed redemption at par value
- Transparent audits and disclosures
Encourages real-world applications like:
- Government aid distribution
- Retail payments
- Cross-border enterprise use

Singapore combines policy clarity with fintech openness, making it a launchpad for stablecoin innovation.

Hong Kong – Institutional-Grade Licensing

The Hong Kong Monetary Authority (HKMA) is developing a licensing framework for fiat-referenced stablecoins.
Key requirements include:
- Full reserve backing in high-quality liquid assets
- Monthly reporting and third-party audits
- Strong cybersecurity and risk management
Part of a broader Web3 strategy to attract institutional capital and support regulated virtual asset providers (VASPs).

Hong Kong is shaping a rigorous, compliance-driven framework targeting institutional finance and enterprise adoption.

🌏 Regional Overview

Country	Strategy Focus	Status	Use Cases
Malaysia	Local fintech & DeFi	Conceptual/Pilot	MYR stablecoin, e-commerce, DeFi
Singapore	Innovation & Regulation	Active Implementation	SGD stablecoins, enterprise payments
Hong Kong	Institutional oversight	Licensing in progress	Regulated stablecoins for Web3 finance

🔮 What’s Next for Fintech & Stablecoins?

The future of digital finance is taking shape through several trends:

🔁 Interoperability

Cross-chain bridges and Layer-2 solutions are making stablecoins usable across ecosystems like Ethereum, Solana, and Internet Computer (ICP).

⚙️ Programmable Money

Smart contracts are enabling programmable payrolls, subsidies, taxes, and grants.

🏦 Institutional Stablecoins

Banks and financial firms are issuing their own stablecoins for B2B use, liquidity management, and compliance.

🌐 CBDC Coexistence

Stablecoins and Central Bank Digital Currencies (CBDCs) will likely coexist—with stablecoins leading in flexibility and programmability, while CBDCs serve core public infrastructure.

🌍 Rise of National Stablecoins

Countries are issuing sovereign stablecoins (e.g., Malaysia’s Blox) to promote currency sovereignty, data localization, and regulated DeFi.

✅ Conclusion

Fintech and stablecoins are more than just buzzwords—they are building blocks of the next financial era. As infrastructure matures and regulations evolve, we are witnessing the creation of a borderless, decentralized, and inclusive financial system.

💡 The financial future will be co-created by governments, developers, and users—with stablecoins at the center of trust, efficiency, and innovation.

Watch this Video to understand more about Stablecoins

RWA Tokenization

RWA tokenization has been a hot topic in the Web3 space in recently years but there were not many use cases. However, with crypto gradually adopted by mainstream institutions as a new asset class in investment, RWA tokenization has emerged as an innovative tool to transform illiquid assets into digital assets with increased liquidity and inclusivity . For your information, BTC ETF and ETH ETF are not considered tokenized RWA. A Bitcoin ETF holds Bitcoin as its underlying asset, but it doesn’t represent ownership of the Bitcoin through a token on a blockchain. Tokenized RWAs, on the other hand, are digital representations of real-world assets like real estate, stocks, or bonds on a blockchain.

Comparison between BTC ETF and Tokenized RWA

Bitcoin ETF:

Focus: Provides investors with exposure to the price movements of Bitcoin.
Mechanism: An investment company buys and holds Bitcoin, and investors purchase shares in the ETF, which represent a portion of the underlying Bitcoin holdings.
Not Tokenized: The ETF itself is not a tokenized representation of Bitcoin on a blockchain.
ETF is a stock

Tokenized Real-World Assets (RWAs):

Focus: Represents ownership of physical or traditional financial assets (like real estate, stocks, bonds) as digital tokens on a blockchain.
Mechanism: The asset is converted into a digital token, allowing for fractional ownership, easier trading, and other benefits of blockchain technology.
Not Bitcoin ETFs: These are distinct from Bitcoin ETFs, which are a way to invest in Bitcoin itself, not a tokenized representation of other assets.

Key Difference:

The crucial distinction is that a Bitcoin ETF holds Bitcoin as its asset, while tokenized RWAs represent other real-world assets as digital tokens.

Examples of RWA Tokenization

Tokenization of Real Estate

Real estate has always been considered a safe investment compared to the stock market. However, it is also more expensive and illiquid. Though real estate is the largest asset class with a global value of $228 trillion, many retail investors are precluded from investing in this asset class, particularly commercial real estate. Barriers to entry include large upfront investment, very low short-term liquidity, management costs, among others. Therefore, how to make investing in real estate more affordable and accessible to retail investors has become an urgent matter.

In recent decades, a process known as securitization of real assets has reduced the frictions and costs associated with accessing real estate exposure for such retail investors. Among financial instruments that provide indirect investment via securitization of real assets, the most common are public and private real estate investment trust (REIT), real estate investment fund, Real Estate Exchange Traded Funds (ETFs), and real estate crowdfunding. Though investors can already buy and sell real estate investment trusts (REIT), but these often have high minimum investments and represent a large portfolio of companies rather than a single property or new development.

To work around the issues, a new form of securitization known as tokenization of real estate aka RWA tokenization has emerged and is gaining popularity . Tokenization helps asset or fund owners raise capital more efficiently, and gives investors unprecedented access to private real estate investments, transparency, and liquidity.

Tokenization is a way to securitize real assets by dividing them into shares that can be sold to investors. It involves representing ownership of an interest in real estate with virtual tokens that exist on a blockchain which is known as security tokens. These tokens are created using blockchain technology, and once created can be traded on digital exchanges or Alternative Trading Systems (ATS).

An actual tokenization use case happened in Paris recently. The property is known as AnnA Villa, which is valued at € 6.5 million. The Villa became the first-ever property in France that was sold via a blockchain transaction. The transaction took place in three steps. First, the ownership of the building was transferred to a joint-stock company called “SAPEB AnnA.” Next, the ownership of the company was divided into 10 Ethereum-powered tokens which were distributed among the new owners. In the final step, each of these tokens was then further broken down into 100,000 units, meaning each token has a face value of € 6.50. Therefore, you can invest as little € 6.50 in the villa.

Tokenization of Bonds and Stocks

Tokenization of bonds and stocks refers to converting the ownership rights of these traditional financial instruments into digital tokens that exist on a blockchain or distributed ledger. These tokens represent a share or unit of the underlying asset and can be traded and transferred via digital exchanges or used in DeFi (decentralized finance) applications.

🏦 Tokenization of Bonds

🔹 What It Means:

Each token represents a claim on the bond’s interest payments and principal repayment. The bond terms (maturity, coupon, issuer, etc.) are embedded in the smart contract.

🔹 Benefits:

Faster settlement
Reduced intermediaries
Global access
Increased liquidity

🌍 Real-World Examples:

1. European Investment Bank (EIB) – Ethereum (2021)

What: Issued a €100 million digital bond.
Blockchain: Ethereum
Participants: EIB (issuer), Goldman Sachs, Santander, Société Générale
Features:
- 2-year maturity
- Settled in central bank digital currency (CBDC) simulation
- Reduced issuance time

2. HSBC & Singapore Government Bond Tokenization (2023)

What: Tokenized Singapore Government Bonds
Tech: HSBC’s Orion blockchain platform
Result: Enabled atomic settlement (simultaneous delivery vs. payment) of digital assets and currencies.

📈 Tokenization of Stocks

🔹 What It Means:

Each token is pegged to an actual stock or equity. This can be 1:1 backed (custodian holds the real shares) or synthetic (price exposure only).

🔹 Benefits:

24/7 trading (unlike traditional markets)
Access to global investors
Fractional shares possible

🌍 Real-World Examples:

1. Tesla / Apple Tokenized Stocks on FTX (before shutdown)

What: Tokenized versions of real stocks like Tesla, Apple, etc.
Issuer: FTX via CM-Equity (licensed German entity)
Mechanism:
- 1 token = 1 real share held by CM-Equity
- Could be traded globally, 24/7
Status: Shut down after FTX collapsed

2. Swarm Markets (EU regulated) – Public Company Shares

What: Tokenized stocks of Apple, Tesla, and two U.S. Treasury Bonds
Regulation: Compliant with MiFID II (EU financial laws)
Platform: Swarm Protocol
Utility: Investors can buy stocks with crypto while remaining compliant

💡 Why It Matters:

Traditional	Tokenized
2–3 day settlement	Near-instant
Custodian-dependent	Blockchain-based
Limited access	Global retail access
No fractional ownership	Easily fractionalized

🚧 Challenges:

Regulatory Compliance: Security tokens are heavily regulated.
Custody & Settlement: Real assets must be safely held and legally backed.
Market Infrastructure: Needs mature trading platforms and investor protections.

Tokenization of bonds and stocks is revolutionizing capital markets by making them more efficient, accessible, and transparent. However, regulation, custody, and market maturity are crucial for mass adoption.

Tokenization of Arts and Artifacts

RWA tokenization for arts and artifacts refers to converting ownership or rights over real-world assets (RWAs) like fine art, historical items, collectibles, or cultural artifacts into digital tokens on a blockchain. These tokens can represent full ownership, fractional ownership, or economic rights (e.g., profit-sharing).

🖼️ Real Examples

1. Masterworks.io

What: Fractionalizes high-value blue-chip artwork (e.g., Banksy, Warhol).
How it works:
- Masterworks buys physical art.
- SEC-qualified offering splits it into shares.
- Investors buy tokens representing equity.
Status: Regulated under U.S. law, with resale on secondary markets.

2. Particle Collection

Asset: Banksy’s “Love Is in the Air”
Tokenized on: Avalanche blockchain
How:
- Physical artwork divided into 10,000 NFTs (each NFT = a particle)
- Holders get digital certificates, and ownership is recorded immutably
Value to holders: Fractional ownership, participation in governance of a collective museum

3. Artex (Digital Fine Art Marketplace)

Focus: Tokenizing paintings from museums, galleries, and private collectors
Goal: Democratize access to fine art investing using blockchain
Token Utility: Investors can trade art tokens on a secondary marketplace or use them in staking pools

4. RARE Network (NFT-RWA Bridge)

Concept: Bringing physical fine art into Web3 using tokenized certificates of authenticity
Tech: Combines NFTs (representing ownership) with real-world appraisal and storage verification

🔒 How It Works Technically

Asset Appraisal & Custody
- The artwork or artifact is appraised and held in custody (e.g., museum, vault, gallery).
Legal Structuring
- A legal wrapper (e.g., LLC or trust) owns the asset; tokens represent shares of that entity.
Token Issuance
- Digital tokens are created on blockchain platforms (Ethereum, Avalanche, Polygon).
Smart Contracts
- Rules governing ownership transfer, royalties, resale, etc., are encoded in smart contracts.
Secondary Trading
- Tokens can be listed and traded on platforms like OpenSea, Securitize, or dedicated art token exchanges.

⚠️ Challenges

Issue	Explanation
Legal Complexity	Ensuring token holders have enforceable rights over the physical asset.
Valuation	Art is subjective and prices can be volatile.
Custody Risks	Physical safekeeping is essential to ensure token value.
Regulatory Uncertainty	Some jurisdictions treat fractional art tokens as securities.
Liquidity Limits	Art markets are niche—may not attract deep daily trading volumes.

💡 Use Cases

Retail Investors owning a slice of a multi-million-dollar artifact.
Museums raising funds by fractionalizing their collections.
Artists tokenizing limited-edition works and controlling resale royalties.
Cultural Institutions offering public participation in heritage preservation.

🧾 In Summary

Tokenization bridges real assets and blockchain by creating immutable digital representations of ownership.
It enables fractional, transparent, and efficient asset markets.
However, regulatory uncertainty, tech dependencies, and market inertia remain hurdles.
Despite these, RWA tokenization is rapidly evolving and poised for significant growth

YouTube

Impermanent Loss in DeFi

Impermanent Loss (IL) is a concept in decentralized finance (DeFi) that occurs when providing liquidity to automated market maker (AMM) pools. It refers to the temporary loss of funds experienced by liquidity providers (LPs) due to price volatility of the assets in the pool. This loss is “impermanent” because it only materializes if the LP withdraws their funds when the asset prices have changed. If the prices return to their original state, the loss disappears.

How Impermanent Loss Occurs

In an AMM pool, liquidity providers deposit pairs of tokens (e.g., ETH and USDT) into a pool. The pool uses a constant product formula (e.g. x x y = k to determine the price of the assets. When the price of one asset changes relative to the other, arbitrageurs trade in the pool to restore equilibrium, which shifts the ratio of the two assets in the pool. This shift causes LPs to end up with a different value of assets than if they had simply held the tokens.

Example of Impermanent Loss

Let’s assume a liquidity pool with two assets: ETH and USDT. The pool follows the constant product formula x x y = k , where:

x = amount of ETH in the pool

y = amount of USDT in the pool

k = constant product

Initial Conditions

– Initial price of ETH: $1,000

– You deposit 1 ETH and 1,000 USDT into the pool.

– Total value of your deposit: $2,000 (1 ETH × $1,000 + 1,000 USDT × $1).

– The pool has:

– 10 ETH

– 10,000 USDT

– Constant product k = 10 x10,000 = 100,000 .

Your share of the pool: 10% (you deposited 1 ETH and 1,000 USDT out of 10 ETH and 10,000 USDT).

—

Scenario: Price of ETH Increases to $2,000

1. Arbitrageurs Trade in the Pool:

– When the external price of ETH rises to $2,000, arbitrageurs buy ETH from the pool until the pool price matches the external price.

– The new ratio of ETH to USDT in the pool will adjust to reflect the new price.

2. New Pool Balances:

– Let the new amount of ETH in the pool be x’ and USDT be y’ .

– The constant product formula x’ x y’ = 100,000 must hold.

– The new price of ETH in the pool is y’/x’ =2,000 (since 1 ETH = 2,000 USDT).

Solving the equations:

x’ x y’ = 100,000

y’/x’ =2,000 implies y’ = 2,000x’

Substituting y’ = 2,000x’ into the constant product formula:

x’ x(2,000x’)= 100,000

2,000x’^2 = 100,000

x’^2= 50

x’ = √50 ≈ 7.071 ETH

y’ = 2,000 x 7.071 USDT

3. Your Share of the Pool:

– Your share is 10% of the new pool balances.

– You now have:

– ETH: 0.10 x 7.071 0.7071 ETH}

– USDT: 0.10 x14,142 1,414.2 USDT

– Total value of your share:

0.7071 ETH x2,000 + 1,414.2 USDT = 1,414.2 + 1,414.2 = 2,828.4USDT

4. Value if You Had Held the Tokens:

– If you had simply held your 1 ETH and 1,000 USDT, the value would be:

1 ETH x2,000 + 1,000 USDT = 2,000 + 1,000 = 3,000 USDT

5. Impermanent Loss Calculation:

Impermanent Loss} =value in pool-value if heldvalue if held

= 2,828.4-3,000

= -171.6

≈-5.72%

Key Takeaways

– Impermanent loss occurs when the price of the assets in the pool changes.

– The greater the price change, the higher the impermanent loss.

– LPs are compensated for this risk through trading fees, but they must weigh the fees against potential losses.

– If the price returns to its original state, the loss disappears.

Formula for Impermanent Loss

The impermanent loss can also be calculated using the following formula:

Impermanent Loss(IL) = [(2x√price ratio)/(1+price ratio )]-1

Where:

Price Ratio = New Price/ Original Price

In the example above:

Price Ratio = 2,000/1,000 = 2

Impermanent Loss}= [(2x√2)/(1+2) ]- 1

= (2×1.4142)/3 – 1

= 2.8284/3 – 1

= 0.9428 – 1

= -0.0572 or , -5.72%

This matches the earlier calculation.

ICP Developer Guide -Chapter 1

In the previous post, you learned about the fundamental concepts of the Internet Computer Protocol (ICP), a third-generation blockchain designed to power the next evolution of the internet. At its core, ICP functions as a decentralized cloud, enabling developers to build and deploy applications entirely on-chain without relying on traditional centralized servers like AWS or Google Cloud.

You might be wondering—how is this even possible? To clear up any doubts, I will walk you through the process of creating and deploying an application on the Internet Computer. Unlike conventional web hosting, ICP allows you to launch apps without registering a domain name or provisioning a cloud server, leveraging blockchain-native web hosting for a truly decentralized experience.

Prerequisite

To start coding in IC(Internet Computer) , there are some prerequisites you need to set up or install before you can jump into developing your first app. Following are the prerequisites:

Ensure you have the supporting operating system-
- Windows 10 or 11 with WSL2 installed with Ubuntu Linux v20.04
- Mac OSX 12 or above
- Ubuntu Linux v20.04
NodeJs v20
GitHub Account
IC SDK
Visual Studio Code IDE
Basic programming knowledge- JavaScript, CSS, HTML

Here are the references to install the or set up the prerequisites:

You must install IC SDK before you can start coding. Use the following command in the WSL ubuntu terminal to install the SDK:

·sh -ci “$(curl -fsSL https://internetcomputer.org/install.sh)”

After installation, check its version using the command dfx –version, you should see something like dfx 0.24.3

*·If you are using a machine running Apple silicon, you will need to have Rosetta installed. You can install Rosetta by running softwareupdate –install-rosetta in your terminal.

The next step is to create an account in IC. In ICP, authentication requires a key pair consisting of a private and a public key, while the account itself is identified by a unique principal ID. Additionally, a ledger is needed to store accounts and transactions. This ledger is a smart contract known as a system canister. Each user will have a ledger account identifier, also called an account ID, which is used to hold ICP tokens. Furthermore, a wallet must be created to store cycles and facilitate sending cycles to and from canisters.

Creating ICP Account

To create an account in IC, using the following command:

dfx identity new <identity_name>

·💡Identity names must use alphanumeric characters comprising uppercase and lower letters, numbers and special characters. Example: My_chatb@t

·ℹ️Most importantly, REMEMBER to back up the 24-word account/identity seed phrase. This is essential for restoring your account if you forget your password or need to access it from another device. Additionally, you can create multiple accounts on your device.

Principal ID

Having created your account, you can obtain your principal id using the following commands:

dfx identity use <identity_name>

dfx identity get-principal

Your account’s principal ID will resemble this:

zxyfn-yljyi-bn6dy-ixi7n-jez74-nk723-pvj3m-jykes-dhqon-3ktql-uae

Ledger Account ID

You can also obtain your ledger account id using the following commands:

dfx identity use <identity_name>

dfx ledger account-id

Your Ledger account ID will resemble this :

1370f0ea74b35f33d2a2fee64a7a8c53cd52d6dd82c1cdfe08712dcd863692ab

Importing Account

In case you have changed your device and need to use the same account to develop ICP apps, you may import the 24-word seed phrase you have saved as a plaintext into your new development environment using the following command:

dfx identity import –seed-file <seedfile.txt> <Identity Name>

ICP Token Balance

To check the ICP token balance in ledger account on ICP Main Network, use the following commend:

dfx ledger –network ic balance

·💡–network ic or –ic: Connect to ICP Main Network, without this parameter, it will connect to the local network

Internet Identity

Internet Identity is a decentralized authentication system for the ICP. If you haven’t already, set up an Internet Identity:

Go to the Internet Identity portal: https://identity.ic0.app/.
Click “Create New” to create a new identity.
Follow the prompts to register your device . For Windows 10 user, require to use your mobile phone to scan the QR Code to store the credential information in the mobile phone. For Android device, recommend to use Google Lens to perform Passkey QR code scanning.
Note down your Internet Identity number (e.g., 12345).

ICP Account Address

To receive ICP tokens, you need an ICP account address associated with your Internet Identity. Here’s how to get it:

Go to the Network Nervous System (NNS) Dapp: https://nns.ic0.app/.
Authenticate using your Internet Identity.
Once logged in, navigate to the “Accounts” section.

Plug Wallet

You may also use the Plug Wallet to store your ICP tokens. Plug wallet can be installed as a browser extension on a laptop or can be installed as a mobile app on your phone. You can download Plug Wallet using the link below.

https://plugwallet.ooo/

Network Nervous System

The Network Nervous System (NNS) is the decentralized governance system aka DAO that controls and manages the Internet Computer (ICP), a blockchain-based computing platform developed by the DFINITY Foundation. The NNS is one of the most critical components of the Internet Computer, as it enables the network to operate autonomously and evolve over time through community participation.

Key Functions of the NNS

Governance:
- The NNS allows ICP token holders to participate in the governance of the Internet Computer by submitting and voting on proposals.
- Proposals can cover a wide range of topics, such as upgrading the protocol, adjusting network parameters, or funding ecosystem projects.
Token Economics:
- The NNS manages the ICP utility token, including its minting, burning, and distribution.
- It also handles the creation of cycles, which are used to pay for computation and storage on the Internet Computer.
Node Management:
- The NNS oversees the addition, removal, and configuration of node machines that power the Internet Computer.
- It ensures the network remains secure, scalable, and efficient.
Canister Management:
- The NNS manages the lifecycle of canisters (smart contracts) on the Internet Computer, including their creation, upgrading, and deletion.
Network Upgrades:
- The NNS facilitates seamless upgrades to the Internet Computer protocol without requiring hard forks or downtime.
- This is achieved through a decentralized voting process.

What is ICP Blockchain? A Brief Introduction

The Internet Computer Protocol (ICP) is a groundbreaking blockchain technology developed by the DFINITY Foundation. Often referred to as the third generation of blockchain, ICP aims to transform the way the internet works by allowing it to natively host software, smart contracts, and web services — all directly on the blockchain.

What Makes ICP Unique?

Unlike traditional blockchains that rely on external cloud services or centralized web servers, ICP enables developers to build fully decentralized applications (dApps) that run 100% on-chain. This is a major leap forward in creating a truly open, secure, and tamper-proof version of the internet.

ICP does more than just support cryptocurrencies or DeFi — it provides the infrastructure for building entire systems and platforms, including websites, enterprise software, and social media apps, directly on the blockchain.

How Does It Work?

ICP operates through a global network of independent data centers that run specialized nodes. These nodes are organized into subnets, each capable of hosting canisters — a new kind of smart contract optimized for performance and scalability.

The protocol uses advanced cryptography, including Chain Key Technology, to manage, validate, and synchronize data across the network at web speed. This makes ICP one of the fastest and most scalable blockchains in existence.

Key Features of ICP:

Decentralized Hosting: Apps run entirely on the blockchain, eliminating the need for centralized web hosting.
Web Speed Performance: Processes transactions and updates data in seconds.
Smart Contract Canisters: Advanced, upgradeable smart contracts that scale horizontally.
No Middlemen: Users interact directly with dApps through any browser — no need for plugins or wallets.
Governance via NNS: The Network Nervous System (NNS) governs upgrades, configurations, and economics of the Internet Computer.

Real-World Use Cases

ICP is already powering a wide range of innovative projects:

OpenChat: A decentralized alternative to WhatsApp.
DSCVR: A blockchain-based social network similar to Reddit.
Internet Identity: A secure, anonymous authentication system without usernames or passwords.

Startups, enterprises, and developers are using ICP to build next-generation services that are censorship-resistant, interoperable, and cost-effective.

The Role of the DFINITY Foundation

Founded in Zurich, Switzerland, the DFINITY Foundation is a not-for-profit organization behind the Internet Computer. With one of the largest R&D teams in blockchain, DFINITY is committed to building an internet that’s open, secure, and owned by its users — not centralized corporations.

Final Thoughts

ICP isn’t just another blockchain. It’s a bold vision of the future — a new internet where apps and data live on a public, decentralized infrastructure. Whether you’re a developer, investor, or curious tech enthusiast, keeping an eye on ICP could mean witnessing the next big leap in the evolution of the web.