What Is ICON Cryptocurrency?
ICON is a blockchain platform and a network system designed to communicate with one another through different blockchains. ICON is backed by a cryptocurrency token, known as ICX.
Understanding ICON Cryptocurrency
ICON is a company based in South Korea that has developed a blockchain platform and an accompanying cryptocurrency token called ICX. The firm bills itself as an interconnected blockchain network, allowing participants to “converge” at a central point in a decentralized system. This is achieved by ICON Republic and Citizen Nodes linking a community to other communities.
Though blockchains are most widely connected to cryptocurrencies, enthusiasts point to other places where the technology can be used. Any information exchange may technically be added to a blockchain, though it may not be cost-effective to add certain types. Transactions involving shares, currencies, business contracts, deeds and loans, intellectual property, and personal identity may be “tokenized.”
By design, blockchains are operated by a single network, and it has not been possible to link multiple blockchains. ICON is an attempt at such a connection.
Centralized payment mechanisms, such as Visa, allow businesses to conform to this. By empowering individual communities to maintain influence of their own decisions, ICON aims to reduce possible stumbling points for adoption.
Communities are linked to the ICON Network via a exchange that is not centralized, allowing to retain a validated ledger maintained within the community network itself. This decreases third-party demands, and can reduce processing costs.
A Community Comprised of a Network of Nodes
ICON considers a community as a network of nodes that follow a common form of governance. Bitcoin, Ethereum, and other networks of cryptos are called communities. So are the banks, companies, hospitals, schools, and governments. Communities can have various governance structures, node numbers, and characteristics.
Communities differ in their approach to decision-making, with the “Community Nodes” approach to managing. Communities like Bitcoin take a consensus-driven approach, while communities like financial institutions adopt a hierarchic approach.
ICON calls decision-makers Community Representatives, with them also getting a say in how the community communicates with the ICON Republic.
The ICON Republic links the different communites. The governance of the ICON Republic shall be decided by the votes of Community Representatives, but the acts of the ICON Republic do not decide the governance of the individual communities themselves. However, the ICON Republic enables the issuance of the ICON Exchange Token, called ICX. Non-Community Representatives, such as those who are interested, can participate in the ICON Republic but have no voting rights.
ICON uses the loopchain principle to bind communities which are part of an ICON Republic. Such groups, referred to as a consortium, establish a common set of rules that allow for cooperation between different blockchains.
The blockchain of each community is linked to the ICON Republic through the Community Representative, with the blockchain of the ICON Republic called the “nexus.” Rules covering how the independent blockchains interact with the nexus are called the Blockchain Transmission Protocol, or BTP.
A blockchain consortium of banks, for example, provides guidelines for how smart contracts can be authenticated without third party supervision being needed. The transactions are applied to the ledger of each community as the parties to each smart contract change.