ICON (ICX) operates as an open-source programmable blockchain network and data aggregator. The goal of the project is to create a blockchain hub within the market that enables developers and users to facilitate interactions between independent blockchains. This strategy enables entities from a diverse range of industries to better serve the market. Specifically, ICON envisions a day where the financial, security, insurance, healthcare, educational, and commerce sectors can interact and share data in a seamless manner.
History of ICON (ICX)
ICON (ICX) officially entered the market in 2017. This South Korean-based firm was created by the ICON Foundation. The ICON Foundation operates as a non-profit entity tasked with expanding and supporting ICON’s ecosystem. Notably, it wasn’t until January 2018 that ICON launched its mainnet. This maneuver was followed in June 2018 by ICON ICO investors receiving their ICX tokens.
What Problems Does ICON (ICX) Attempt to Fix?
One of the main issues that ICON (ICX) wants to tackle is a lack of interoperability within the market. The blockchain sector is at an important crossroads at the moment. The industry continues to introduce new and more flexible networks. However, these networks often lack the ability to build on their predecessors. As such, developers spend a lot of their time just repeating the same features.
ICON enables developers to build on each other’s creations and leverage the best aspects of each blockchain. This approach saves time and enables developers to direct their efforts where they are most useful. Additionally, the platform introduces standards to help drive innovation. ICON’s decentralized structure also helps to prevent centralization through a community voting mechanism.
High Fees
Ethereum is currently in the midst of major congestion issues. The network is unable to host so many DeFi networks without experiencing high fees. ICON (ICX) provides a viable alternative to the market which eliminates these issues and introduces a variety of new services to improve usability.ICON’s design enables it to provide scalability to the market. Notably, the platform leverages a Delegated-Proof-of-Stake (DPoS) consensus mechanism. This system gives the network high security, responsiveness, and much lower fees than major competitors such as Ethereum.
Benefits of ICON (ICX)
There are many benefits that make ICON (ICX) a smart decision for businesses and firms seeking to integrate blockchain tech into their processes. The added interoperability provided by ICON can save developers time and effort. The protocol is packed with developer resources and more. For example, the network provides a simple way for developers to create and sell Dapps. Additionally, it enables users to create more diverse Dapps that leverage the best aspects from multiple blockchains to provide a top-notch user experience.
How Does ICON (ICX) Work
At the core of ICON’s strategy is a custom-built blockchain called Nexus. Nexus is a third-generation blockchain that provides high transaction throughput and unmatched interoperability. The blockchain leverages Loopchain Technology which enables it to act as an intermediary between other networks. The system also uses Blockchain Transmission Protocols (BTP) to effectively govern how independent blockchains interact with the ICON Republic’s blockchain.
ICON Republic
The ICON (ICX) Republic functions as the governing layer of the protocol. The ICON Republic enables community elected representatives to cast votes on and put forth proposals. Notably, it’s not designed to govern independent communities directly but rather, it’s responsible for determining things such as ICX minting, fees, and how communities interact.
ICON Communities
ICON (ICX) communities are the separate networks that developers and users create. These networks are unique in nature and can operate with their own governance structures, numbers of nodes, and characteristics. This approach provides developers and businesses with top-notch flexibility to build applications that meet their needs. Notably, the DEX sets currency reserves for each blockchain community using an advanced AI evaluation method.
C-Rep
Every ICON (ICX) community has a C-rep. This node is responsible for putting forth the concerns and requests of their community. C-reps are vital because they directly link communities to the ICON Republic. For their services, C-Reps receive payment in the form of the network’s native utility token, ICX.
C-Nodes
The ICON (ICX) ecosystem relies on community nodes to provide vital infrastructure to the blockchain. All C-Nodes must be elected to their position by the community. Like reps, they receive ICX rewards for their contributions.
Citizen Nodes
Citizen nodes are users that participants in the blockchain but lack voting rights. These users still have access to the core features of the platform. They can send and receive transactions within a community, with other communities, and with the Icon Republic directly.
ICX
ICON (ICX) is the native cryptocurrency and utility token for the platform. This coin operates as the primary intermediary currency for the exchange between networks. Users can stake ICX and earn rewards for helping to keep the Nexus chain safe. You can also use ICX like a normal cryptocurrency to send value internationally in a frictionless manner.
IRC16
In 2019, ICON (ICX) raised eyebrows with the release of its first token standard – IRC16. This new token standard enabled users to easily and more efficiently create tokenized assets and securities. Standardization is a vital first step in driving innovation within a network. The introduction of IRC16 marks a major milestone. Now, developers can create wallets, exchanges, games, and much more with full confidence that their creations will function perfectly within the ecosystem.
Final Word
Platforms such as ICON (ICX) that focus on drawing out more value from the existing networks are much-needed. ICON provides the right combination of scalability, developer flexibility, and easy access to make it a strong contender in the market. As more developers exit Ethereum in search of more dynamic and affordable options, ICON continues to provide everything they seek. For these reasons, ICON is set to see growing adoption moving forward.
