ICON (ICX) is a Layer-1 blockchain platform designed to facilitate interoperability between different blockchain networks. The ICON project aims to create a decentralized network that allows independent blockchains to interact with each other.
ICON (ICX) was founded by Theloop, a South Korean blockchain technology company. Theloop was established by DAYLI Financial Group, one of the largest fintech companies in South Korea. The ICON project was initiated to address the issue of blockchain interoperability and to create a more connected blockchain ecosystem.
The ICON project was officially announced in 2017. ICON conducted its initial coin offering (ICO) in September 2017, raising funds to support the development and expansion of the project. During the ICO, the ICON Foundation issued ICX tokens, which serve as the native cryptocurrency of the ICON network. Min Kim has been associated with the ICON project and has played a significant role in its development.
ICON introduced the concept of the ICON Republic, a network where different blockchain communities can interact and share information. This design is intended to foster a more interconnected and scalable blockchain ecosystem. ICON Republic consists of various independent blockchains called communities. These communities can interact with each other through the ICON Republic.
The underlying technology powering ICON is Loopchain, a blockchain engine developed by theloop. Loopchain is designed to provide high-performance consensus and support for various use cases, including financial transactions and decentralized applications.
Loopchain uses a consensus algorithm called LFT (Loop Fault Tolerance), which is a Byzantine Fault Tolerance (BFT) algorithm. BFT algorithms are known for their ability to reach consensus in a distributed network, even in the presence of faulty nodes or malicious actors.
On ICON, those who hold ICX have the opportunity to stake and delegate their ICX to Public Representatives (P-Reps), entities actively participating in the governance of the ICON blockchain. This Delegated Proof-of-Stake (DPoS) system provides a dual benefit – stakers can passively earn rewards, while individuals with technical expertise who are interested in establishing infrastructure and contributing to the governance of ICON can actively do so.
The ICON blockchain operates under the governance of Public Representatives (P-Reps). To become a P-Rep, teams or individuals must undergo an on-chain registration process, which involves a 2,000 ICX registration fee. Once registered, P-Reps can begin receiving delegation in the form of staked ICX.
The primary offering from ICON is the Blockchain Transmission Protocol (BTP), a solution for interoperability that facilitates cross-chain token swaps and provides broader messaging functionalities such as cross-chain smart contract calls. The ICON ecosystem integrates various blockchains, including but not limited to Binance Smart Chain, Near, Harmony, Moonriver, Polkadot, ICE/SNOW, and Ethereum.
Loopchain supports the execution of smart contracts. Smart contracts are self-executing contracts with the terms of the agreement directly written into code. In Loopchain, smart contracts enable the automation of processes and the execution of predefined actions based on specific conditions.
Loopchain uses a concept called channels to separate different services or applications within the same blockchain network. Each channel can have its own set of rules and consensus mechanisms, allowing for flexibility and customization.
One of the standout features of ICON is its focus on interoperability. The platform aims to enable seamless communication between disparate blockchains, fostering collaboration and enhancing the overall utility of blockchain technology.
ICON supports the development of decentralized applications on its platform. Developers can create smart contracts and deploy DApps on the ICON blockchain. DID is a mechanism that provides users with control over their personal information and ensures privacy and security.
ICON has actively worked on building a strong community of developers, users, and stakeholders. The ICON Foundation plays a crucial role in supporting the ecosystem's growth and adoption.
ICX is the native token of the ICON network. It has a total supply of 972,178,113 ICX, and as of November 13, 2023, the circulating supply is 972,177,674 ICX. ICX is used to pay for transaction fees on the ICON network. It is also used for staking and delegating as well as governance.
Some services and features within the ICON ecosystem may require users to hold and use ICX. For example, accessing certain premium features, using decentralized finance (DeFi) applications, or participating in specific events may involve the use of ICX.
The average fees on the ICX
Fees on the ICON network may include transaction fees for sending ICX tokens, staking fees, and other potential charges depending on the actions performed within the network.
Transaction fees on the ICON network are typically determined by factors such as network congestion and the computational resources required for the transaction.
The Step serves as the metric for calculating transaction fees on the ICON network, quantifying the computational resources needed for transaction execution. The initial setup establishes a ratio of 1 ICX to 100,000,000 Step.
In the event of substantial fluctuations in ICX prices, the Step price also experiences variability. This volatility has the potential to discourage ICONists from utilizing the ICON network. Representatives can determine and update the exchange rate between ICX and Step to maintain a stable Step price.
Roughly the transaction fees on the ICON network are around 0.01 ICX.
The ICX token wallets
The ICX token can be stored in numerous crypto wallets, including ICONex, the official wallet for ICX tokens, Ledger Nano S/X, MyEtherWallet, Atomic Wallet, Trust Wallet, Metamask, ImToken, Guarda Wallet, Coinbase Wallet, Exodus, etc.
