All You Should Understand About Dfinity 2.0

Dfinity has ambitious plans for Internet Computer 2.0, but how does this integrate with the broader Dfinity 2.0 strategy? Here’s what you should know.

The DFINITY Foundation has unveiled a scheme it refers to as “Internet Computer 2.0,” aiming to establish its blockchain as a leading cloud for “self-writing” applications while introducing deflation-focused tokenomics and a more streamlined, product-oriented organization. 

The announcement, released today by founder Dominic Williams, outlines new “cloud engines,” an initiative to curb inflation by 2026, and spinoff ventures aimed at fostering adoption.

Why Is Network node Independence Crucial for ICP’s Cloud Engines?

The standout feature is the “cloud engines.” Teams will have the ability to establish private ICP subnets via the NNS configurator with safeguards regarding network node independence and geographical distribution. 

Eventually, these engines may operate across leading cloud platforms while maintaining fault tolerance. Focused terms include cloud engines, NNS configurator, and node independence.

DFINITY is also evolving its operational approach. The foundation asserts it will accelerate delivery with an increased emphasis on user experience and product alignment rather than solely on research. 

This entails clearer product packaging, easier onboarding, and enhanced direct support for developers. Key terms in this context are DFINITY 2.0, UX, and product alignment.

Regarding tokenomics, Williams proposed “Mission70,” aiming to decrease ICP inflation by approximately 70% by 2026. The strategy involves reduced governance rewards and a burn-based revenue sharing model for the engines. 

The concept is straightforward: 80% goes to network node providers and 20% is burned. Any modifications would necessitate an NNS vote. Key terms: Mission70, governance rewards, and burn.

DFINITY is also supporting spin-offs to attract users. Beyond Caffeine is proposed as an AI component for developing applications via natural language prompts. 

UTOPIA aims at private cloud networks. “Convo” remains undisclosed. 

The objective is clear: to deliver products that generate genuine usage for ICP. Key terms: Beyond Caffeine, UTOPIA, and Convo.

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How Is DFINITY Integrating AI Further Into the Internet Computer Ecosystem?

DFINITY has dedicated 2024–25 to incorporating AI into its core ecosystem. It launched on-chain inference last year and is proceeding with a public rollout of Caffeine this year.

In recent comments, founder Dominic Williams noted that Caffeine is designed to enable users to create and update live applications through simple conversations. 

The framework employs Motoko and the ICP runtime to protect stored information during updates, ensuring that applications remain functional and do not lose data.

“You will communicate with AI. AI will provide you with what you need via a URL,” he explained. He characterized AI not merely as a tool for developers, but as a system that creates and sustains applications.

An updated version of Internet Identity is also undergoing testing. It facilitates passkeys and Google sign-in for smoother onboarding.

Ahead of Caffeine’s wider deployment, the team proposed to broaden application subnets for accommodating increased AI-driven app development.

ICP surged on Monday, climbing around +35% while most major cryptocurrencies declined. By early Tuesday, it was trading close to $3.90 on strong activity.

The attention now shifts to how this will be implemented and the timeline for deployment. 

Investors are keen to find out when the initial cloud-engine proposals will be submitted to the NNS, how the Mission70 strategy will effectively decrease inflation, and whether the increasing user base of Caffeine will translate into genuine on-chain actions and burn.

Traders will also be on the lookout for a definitive 2.0 roadmap featuring timelines and early enterprise trials utilizing these engines.

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