Once you begin studying the insights of the crypto world, you are bound to come across a new cryptocurrency every now and then. There are numerous cryptocurrencies to invest in – some are simply identical to one another while some offer a completely different set of features. One such cryptocurrency is ICON (ICX), which seems so promising that it’s hard not to notice it.
What is ICON (ICX)
ICON (ICX) is a South-Korea based cryptocurrency, aiming to ‘hyperconnect the world.’ ICON is a global decentralized blockchain network, connecting the crypto world to the real world whereas ICX is a token used on the ICON network. With its MainNet being launched earlier this year on January 24th, ICON is a relatively new project.
It has only received some attention recently among the crypto community members when the ICON whitepaper was published on January 30th, giving an insight as to what this cryptocurrency is all about. At the time of writing, ICON (ICX) stands on the 23rd position on the market with its price set at $1.50. Gradually, this cryptocurrency is attempting to climb the ladder of success by fulfilling the aim it had set out for.
How ICON Works?
With the help of its loop chain platform, ICON connects an ecosystem of various blockchain communities through the ICON Republic and Nexus. ICON Republic acts as the governing head for a federation of otherwise independent blockchain communities and oversees all the transactions made within the ICON network whereas Nexus is a collection of blockchain communities connected to each other through C-rep portals (community representatives).
What differs ICON from the rest is its infrastructure. The ICON blockchain network aims to interlink the other cryptocurrencies, hence becoming more unique than Ethereum’s blockchain network. The decentralized blockchain network of ICON is built to act as a platform where DApps and smart contracts can be built on. It aims to remove the gap between cryptocurrency, fiat currency, and the real world. This will be achieved by bringing decentralized networks of different blockchain communities, allowing them to interact and transact with one another without compromising their independence and with no interference of any intermediaries.
Basically, this cryptocurrency has been designed to bring all the current and forthcoming blockchain networks, which are used in different and diverse industries, into one interconnected network. This is why the South-Korean cryptocurrency means by ‘hyperconnecting the world’. At the moment, the infrastructure of ICON network is being used by a number of different institutions belonging to different industries in South Korea, ranging from banks, hospitals, educational institutes, insurance companies, and investment firms.
One of the examples demonstrating how a transaction works on an ICON network between a bank and a university is explained below.
When a university student visits a bank to pay his course fee, the bank on the ICON network will send the details of the student associated with the blockchain ID to the university, which is also on the ICON network, to verify if the student is actually enrolled in that university. Once it is confirmed, the transaction will occur using ICX tokens.
What Sets ICON Apart?
ICON comprises of some unique features which actually sets it apart from other cryptocurrencies. The fire and the foremost nifty feature of ICON is its own Decentralized Exchange (DEX) which will link the independently-governed blockchain, using the ICX token. Blockchains on the ICON network can exchange currencies using the platform’s own DEX without having to rely on the public exchanges. Leading cryptocurrencies like Bitcoin and Ethereum can also be found on DEX, making ICX even more appealing as it can be exchanged with any other cryptocurrency in the market.
Another distinguishing feature of ICON is that it makes use of Loop Fault Tolerance (LFT) consensus mechanism that supports Byzantine Fault Tolerance. LFT consensus mechanism is used for faster transaction processing time and removing the risk of creating a folk in the blockchain network. This method makes use of a technique known as ‘spinning’ to simplify the process of selecting the primary node. It cuts down the number of nodes involved in the consensus, thus making the network scalable and more efficient.
The Future of ICON
There’s no doubt about the fact that ICON has set out as an ambitious project, aiming to hyperconnect different independent blockchain networks on one platform. With only being launched last year, it has made its way up to the 23rd position on the market cap, as the time of writing.
The future of ICON definitely looks brighter at the moment as it is a project that comes with huge potential. The problem for ICON may arise if the individual blockchain communities choose to transact in cryptos other than ICX, which in turn, may hurt the potential of ICX token, especially from an investor’s point of view.
However, ICX can gain momentum if the ICX becomes the standard unit of exchange in the ICON Republic, even if it for one major industry, let’s say banks. Once more different and diverse industries begin to adopt ICON network, the value of ICX can skyrocket on a massive level and can become a must-invest cryptocurrency.