Welcome to the exciting world of Icon, where the buzz is all about building a decentralized network of networks powered by cryptocurrencies!
What is Icon (ICX)?
Icon has its sights set on establishing a “digital nation” where different economic actors can issue and control their own forms of value under the rules they select. Just like how businesses, nonprofits, and public institutions leverage a common means of value in real-world economies, Icon aims to create a similar scenario in the digital realm. This means that computer applications can use Icon’s software as infrastructure to create their own currencies and economies. Pretty rad, huh?
Who Created Icon?
Back in 2017, the Icon Foundation, based in South Korea, released this gem of a project. They kicked things off with an initial coin offering (ICO) for Icon’s cryptocurrency, ICX, raising a whopping 150,000 ETH (around $43 million) in a sale that included 50 percent of Icon’s token supply. The Icon blockchain officially launched in January 2018, with ICO participants receiving their ICX cryptocurrency in June of that year. 2019 was a big year too, as Icon released its own token standard, IRC16, allowing users to issue tokenized assets and securities.
How Does Icon Work?
The Icon blockchain uses a delegated proof-of-stake (DPoS) consensus algorithm to determine which nodes can add new blocks to its blockchain. Unlike mining-based systems, DPoS allows the network to reach consensus more quickly. Now, let’s dive deeper into the inner workings:
Icon Republic: This is the heart of the Icon blockchain’s operation, governing the process by which new ICX cryptocurrency is minted in each block.
Icon Communities: These are networks of nodes within a single governance system, operating with their own set of rules and consensus algorithms.
Community Representative (C-Rep): Elected nodes from each community trusted to communicate with the Icon Republic. C-Reps receive ICX for their work.
Community Nodes (C-Nodes): Act as the infrastructure for each community and are responsible for governing and maintaining a community’s blockchain.
Citizen Nodes: While they don’t have voting power, they can make transactions within a community, with other communities, and with the Icon Republic.
How Loopchain Works
Loopchain is the magic behind the Icon blockchain, integrating messaging between all the nodes that make up the Icon Republic. It uses the Loop Fault Tolerance (LFT) algorithm, which assigns nodes to group transactions into blocks, add those blocks to the blockchain, and distribute these blocks to other network nodes. Here’s the kicker: LFT reduces the number of steps needed for the consensus process through a technique called Spinning.
Why Does ICX Have Value?
At the core of Icon’s economy is the “Icon Incentives Scoring System” (IISS), an algorithm tasked with measuring contributions to the ecosystem and distributing ICX. Unlike Bitcoin and Ethereum, where miners compete for new cryptocurrency by buying specialized computer hardware and burning energy, ICX staking allows users to lock their ICX, representing one vote that can be delegated to support various entities like Representatives, Dapps, and EEPs. By staking ICX, owners and the entities they delegate votes to receive a small reward. The IISS uses staking to determine I-Score, a unit used to quantify a user’s contribution to the network.
Why Use ICX?
Icon could be a game-changer for developers looking to build applications on a public blockchain that can handle a high number of transactions. For instance, the Icon Foundation says its technology is being used to secure medical records and to expedite claims and payments in the insurance industry. Plus, Icon’s strategic positioning in the South Korean market could become a major advantage in generating attention and partnerships.
And there you have it! Icon, the beacon of hope in the ever-evolving landscape of decentralized networks!
Links:
https://icon.community/
https://icon.community/icondiscord/
https://twitter.com/helloiconworld