What is ICON (ICX) in simple words: history, course and how to buy

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2019-08-13 00:00:00:

ICON (ICX) is a blockchain project that makes it possible to combine different blockchains, such as Bitcoin, Ethereum, NEO , Ark and Qtum . At the same time, ICON is the largest decentralized network.

The technology is developed by a Korean company called Theloop. This project is a non-profit association of DAYLI and three South Korean educational institutions.

Work on the ICON project began in 2015. Theloop is the largest financial technology company in South Korea. Under her leadership, a large-scale blockchain network operates, which unites more than thirty organizations from various fields. Companies from the educational, healthcare and insurance industries are taking part in the project. If at the very start the amount of attracted investments exceeded USD 100 million, today the project cost is estimated at USD 4 billion.

ICON has its own wallet that allows you to carry out any transactions. The ICON wallet is one of the key features of the project. Through it, you can convert or transfer various tokens in real time through a decentralized cryptocurrency exchange (DEX). In addition, the wallet can also be used for everyday payments.

The creators of the project have created a blockchain that is fully compatible with other most popular cryptocurrencies, including Bitcoin and Ethereum . In addition, the project is compatible with many third-party blockchain platforms. This distinctive feature of ICON will allow the most effective way to combine the field of blockchain and the real world, with greater success than projects developed by competitors with the support of only one platform.

One of the key principles of ICON functioning is complete equality of all network participants. Any changes in its work can be carried out only by the results of user voting. The site operates on its own algorithm, thanks to which transactions are carried out in real time, through the technology of smart contracts. This will be discussed in more detail below. It should also be noted that ICON smart contracts can function on several blockchains at once, which is one of the main distinguishing features of the project.

The platform has the ability to configure special channels for multichannel transactions. This allows you to transfer and complete all tasks along the chain. Each individual ICON architecture module can be configured to achieve the best scalability.

According to the creators themselves, more than a dozen different organizations are currently involved in their project. At the same time, anyone who wishes can use ICON to create their own blockchain platform.

We can say that ICON is like the Internet itself. If the latter combines a huge number of protocols and sites, then ICON unites blockchain projects.

The goal of ICON developers is to create a common decentralized network through which various blockchain projects can communicate with each other without the help of third parties. Like other blockchain projects, decentralization is one of the companys top priorities.

Anyone can develop an independently managed blockchain platform and join the general ICON network. Each new project can freely interact with others through smart contract technology . All projects connected to the central Nexus platform are standalone. Through Nexus, communication between them is carried out and, thus, each blockchain has the same rights and capabilities.

In fact, ICON is a huge ecosystem in which financial institutions, medical organizations, educational institutions, business structures can freely exchange information in a decentralized network. The project can bring tremendous benefits to companies and organizations operating in the fields of financial services, e-commerce, stock trading, insurance, medicine and education.

The general system of blockchains that are interconnected through ICON is called ICON Republic. The developers strive to make the Blockchain Transmission Protocol (BTP) - the protocol on which ICON is based - the standard for conducting transactions between blocks.

There are many decentralized applications (DApps) operating on the ICON network, such as an identification system on a blockchain or an application for converting cryptocurrencies and making settlements.

The ICON systems cryptocurrency is ICX. This virtual coin allows you to transfer funds between different virtual currencies. The exchange rate is determined through a system called DEX Reserve.

During the ICO, ICON developers had significant investments at their disposal. They were partially used up, and some of them are still in use. In general terms, the investments were distributed as follows:

The first area for which resources were spent is the creation of the engine for the platform, the main software and the development of artificial intelligence. About a fifth of the investments were spent on these tasks.
About 15% was directed to business development activities. This includes the costs associated with the solution of organizational and administrative issues.
Another 12% of the investment was used for operating expenses: legal, accounting and other similar issues.
10% of investments were used to ensure cooperation with other companies and, given the number of partners, were used quite effectively.
Marketing tasks required 8% of the capital investment. This includes an advertising campaign, promotion and promotion on social networks and other Internet sites.
20% are reserve to support work on full-scale integration with Ethereum, which is one of the largest blockchain projects in the crypto industry.
The remaining 15% is also intended for the development of ICON interaction with other blockchain projects. At the same time, it must be said that it is assumed that it is possible to use interaction protocols with any platforms.

Analysts say that ICONs developers were very smart about their investment. The platform is rapidly improving and realizing its plans. There are still some delays, but the blockchain does not cause big complaints. The creators of the project plan to expand the network in Korea and, above all, in Asia.

Distinctive features of ICON

Theloop leads an alliance of four blockchain consortia. They include many different companies, including the famous Samsung. The founders of ICON are constantly collaborating with large firms on large-scale projects, in which they have fairly succeeded and gained vast experience. Among the achievements are the following:

Completion of the platform for investment associations, with the KYCAML contract authentication system.
Electronic payment system for Korean higher education institutions.
A range of automated services for Korea Healthcare and other insurance companies and more.

These achievements demonstrate to potential users the vast experience of the ICON creators in the development of various platforms and projects for working with virtual currency.

Among the key features of the ICON project, it is necessary to highlight the following:

Theloop, the founder and one of the main investors in the project, is the largest South Korean financial technology company. It has a huge blockchain network that is constantly growing and actively collaborates with over thirty organizations and institutions across a wide variety of industries. Theloops developments are actively used in the educational and medical fields, as well as in the insurance and financial sectors. The companys broad connections can seriously contribute to the introduction of a new cryptocurrency at the state level.
The ICON system has been operating for several years and continues to be constantly improved. At the same time, the range of counterparties of the platform is constantly expanding. Currently, ICON token holders can buy securities issued by more than twenty-five companies for them, as well as pay for using the KYC authentication platform, which was also created by Theloop.
The main token and key resource for performing any operations in the ICON system is the ICX virtual coin. It is natural that the popularity and demand for this cryptocurrency directly depends on the popularity that the project gains.
Work on improving the platform is still ongoing. More than a hundred professionals in various fields are involved in the development. In addition, thanks to the open source code, users themselves can contribute to the improvement of the system.
One of the main features of the ICON project is its compatibility with other blockchains. This means that no matter what cryptocurrency or blockchain project takes the lead in the future, the ICON platform will still remain in demand.

Summing up the above, it turns out that the ICON token is practically not threatened by inflation. Even if the rating of a cryptocurrency drops sharply for any reason, this state of affairs will hardly affect its value.

How ICON works

The principles of the ICON platform should be briefly described. Schematically, its functioning is as follows:

The ICON platform is an amalgamation of many blockchain projects. The mechanism of their work and the cryptocurrency used may not be the same. There are no standards or uniform requirements within the platform.
Each individual site within the ICON network is called the Republican Community, and the network as a whole is considered to be a republic. The founders of the project love to compare it to the United Nations. Each individual site independently determines the conditions for the functioning of its own network. At the same time, they all work together in favor of the ICON system.
The community of each individual project has the so-called C-nodes (Community nodes). The nodes carry out their activities in the project in accordance with the current rules. Any blockchain user can register as a node.
C-nodes do not control the platform. The management is carried out by representatives of the communities who are selected by the users of the projects. The rules by which they are elected depend on the rules in force in a particular project.
Community members are responsible for verifying transactions. They deal with issues of interaction with other platforms, etc. The activities of representatives are paid depending on the amount of work done. Payment is made in ICX cryptocurrency.
The platform has its own integrated exchange called Decentralized exchange (DEX). The exchanger contains a reserve of virtual currency for each C-node. With DEX, you can convert cryptocurrencies in real time between different platforms.

ICON cryptocurrency has a fairly large potential area of its use. These are Internet commerce, securities trading, financial activities, education, healthcare, etc. A number of decentralized applications operate within the system. The most popular are cryptocurrency exchange applications, software for making payments for goods and services, blockchain identifiers. At the same time, any application that was developed on one platform can be used by another program.

Among the features of the ICON platform are:

Artificial Intelligence (Al) DAVinCI. Artificial intelligence is used by the blockchain to guarantee rewards for all nodes within the network. The DAVinCI AI engine was created by Dayli Intelligence. The use of artificial intelligence makes it possible to achieve complete decentralization of the network. It should be noted that it is customary to call software capable of learning artificial intelligence. At the same time, the application cannot extract and analyze information on its own. Training takes place in accordance with the algorithms embedded in them. In the ICON network, artificial intelligence monitors the implementation of transactions and monitors the implementation of the terms of smart contracts. According to the creators of ICON, artificial intelligence is an excellent alternative to other technologies, such as sharding. In this case, there is no need to divide the blockchain into several segments to increase performance. Artificial intelligence is able to optimize the process of block formation and transactions. At the same time, its ability to learn means a constant increase in efficiency in the future. Thanks to the artificial intelligence used in the ICON project, the DEX exchanger supports OTC transactions.
ICON Wallet, with which blockchain users can make money transfers and currency conversions in real time via a decentralized exchange. It can be used by both individuals and various organizations, institutions and enterprises.
ICON has incredible compatibility. Blockchain can interact with most popular cryptocurrency platforms, which greatly facilitates the integration of virtual funds into the real world.
The network is decentralized. This characteristic is inherent in most blockchain platforms. Every project that joined the Nexus network has basic functions. The ICON developers claim that the solutions they use implement real self-government. Nexus provides tremendous opportunities for productive interaction between different projects within a single network.
ICON system is based on loopchain. Loopchain is a high performance blockchain that is capable of processing transactions in real time through an advanced smart contract. This technology was developed for corporate applications. The properties of smart contracts in the loopchain can be changed depending on specific situations. It should be noted, however, that smart contracts can be connected through the ICON network with distributed ledgers. The loopchain uses the Loop Fault Tolerance consensus algorithm. This algorithm is an improved version of the more common Byzantine Fault Tolerance (BFT). The use of LFT assumes a gradual system upgrade without the need for hard forks. More details about this algorithm will be discussed below.
The advanced smart contract used in the loopchain is called SCORE (Smart Contract On Reliable Environment). It was designed in such a way that super-performing smart contracts can be executed in real time right in the operating environment without the use of additional virtual mechanisms. The SCORE system operates independently from the main processes of the ICON platform and can be adapted for a variety of applications.
The blockchain uses the BSI protocol to replicate the electronic signature architecture in smart contracts, such as the public key architecture (PKI). The system does not require key management to issue certificates. Instead, it uses X.509 certificates. These certificates are generated by creating electronic signatures on information that is issued during the operation of the Merkle protocol. The algorithms for the functioning of the blockchain are discussed in more detail in the official "white sheet" (whitepaper). It details how the ICON platform works.

It is necessary to dwell in more detail on the consensus protocol used in ICON - Loop Fault Tolerance. As noted above, this protocol is not the most widespread among those used in blockchain projects. It has a lot of significant differences from the traditional Proof of Work or Proof of Stake . However, there are many similarities between LFT and PoS.

LFT was created by combining pBFT and DPoS. You should briefly consider what each of them is.

The key aspects of BFT (Byzantine Fault Tolerance) are as follows:

There are several participants who are at a distance from each other.
Participants receive data from a single center.
Some of the participants, and possibly the center itself, may have bad intentions. Therefore, they will deliberately stop following the orders of the center or will distort the transmitted data in a certain way.
The purpose of the BFT protocol is to find the best course of action for a group of loyal members.

BFT is a theoretical construction. Its practical use case is pBFT. Today pBFT is very often used to create consensus protocols in blockchain projects. ICON is no exception in this sense.

DPoS is used much more frequently in blockchain platforms. This protocol assumes that the responsibility for the formation of blocks is assigned to specific network participants. Thus, the community delegates authority to these users, most often through a vote.

Loop Fault Tolerance is a protocol that uses the DPoS handoff principle, but also has pBFT protection against malicious actions. In addition, LFT is designed in such a way that it takes less time and resources to reach consensus.

It should also briefly talk about the transition of ICX coins from the Ethereum blockchain to their own platform. This transition took place in several stages and was fully implemented at the end of October 2018.

The fact is that at the beginning of the platforms operation, ICX tokens complied with the ERC20 standard - the main standard of the Ethereum blockchain. According to the creators, this state of affairs should have existed before the start of the main network, after which the coins will be transferred to the ICON internal standard. The key principles of token transfer are as follows:

One ICON ERC20 coin corresponds to one mainnet coin.
Only verified exchanges are used for transfers. Otherwise, funds may be lost.
Translation is a one-way, irreversible process.
Initially, it was possible to exchange coins on the Binance, Bithumb, Upbit exchanges. The exchange process started on June 20, 2018.
On June 25 of the same year, the creators also implemented the ability to exchange to their own ICONex wallet.
Several times the completion date of the translation process was postponed. As a result, the full transition to its own blockchain took place on October 25, 2018. The exchanges Bithumb, Upbit, Binance, OKEx, DragonEx, Huobi, Bitrue, Gate.io, WazirX took an active part in the process.

It should be said that the funds that were not transferred cannot be used, since they were frozen. These tokens were reserved for those who did not have the opportunity to switch to the main blockchain. To exchange these funds, you need to contact the ICON developers directly. The creators of the blockchain themselves say that 96% of the funds in circulation have been converted. The rest are tokens that were not transferred for reasons beyond the control of users, as well as those stored in lost addresses.

ICON advantages and disadvantages

So, among the key advantages of the ICON cryptocurrency, the following should be noted:

Professional and competent development team. From the very start of the project, the best specialists from the most advanced scientific institutions in South Korea have been involved in development. In addition, the project is run by the reputable company Theloop, known for its achievements and vast experience in the crypto industry.
Governmental support. ICON is the first blockchain project to receive official support from the authorities. This is despite the fact that in South Korea (the third country after the United States and Japan in terms of the use of virtual currency), a number of restrictions on operations with cryptocurrency were recently introduced, and the initial placement of tokens was also prohibited. Given these facts, the governments support for ICON may indicate the serious potential and far-reaching prospects of this cryptocurrency.
Close interaction with large companies. The project is supported by large investment funds CM Crypto Capital and Kenetic Capital, the largest Asian bank Nonghyup Bank, Korea Healthcare insurance company, as well as developers from the Ripple Foundation. This circumstance has a positive effect on the value and market capitalization of the cryptocurrency.
Practical application of the ICON blockchain. The platform has agreements with three higher education institutions, six medical institutions, twenty-five brokerage firms and a number of South Korean banks. All these institutions and organizations will be provided with their own communities within the single ICON network.
The ambitious plans of the development team. It is planned to launch its own decentralized exchange, ensure compatibility with most popular payment systems, and further develop artificial intelligence.
Well, the key advantage of ICON is the unification of different blockchain projects within one network. Many analysts argue that this project in the future will be able to really ensure the unification of the virtual and real economies and build a completely new economic model. However, today it remains unclear whether this model will become worldwide.

Despite a number of advantages, the ICON cryptocurrency also has weaknesses. Among the main aspects causing mistrust, one can single out, for example, the fact that ICON is a South Korean project. Despite the support provided by the government to the platform, the South Korean authorities are constantly tightening control over the crypto industry. According to a number of analysts, a situation may arise in which the Korean government will not allow the platform to expand beyond the borders of the state. This will mean that it will become impossible to create a worldwide ICON network.

Even now it is clear that the blockchain is primarily directed towards the Asian market. The token is mainly traded on Asian exchanges, and almost all major depositors and partners of the platform have direct ties with South Korea. Most of the companies and organizations that intend to create projects within the ICON blockchain are also located in Korea. The likelihood of expanding the project on the international market, given these circumstances, remains very vague.

In addition, many analysts note the inflationary nature of this token, which also does not contribute to its popularity. The planned annual inflation is 20 percent, which greatly reduces the opportunities for earning money on cryptocurrency in the long term.

According to a number of traders, investing in ICON cryptocurrency is a very risky business. The course today does not justify the forecasts that took place at the start of the project. The price charts eloquently show that there has been only one significant leap in the history of cryptocurrency, despite the very promising start of the platform.

How many ICON

According to the plans of the creators of the project, 800 460 000 ICON (ICX) coins will be issued. Half of this amount was distributed at the initial token offering stage and is currently available for purchase and sale on many cryptocurrency exchanges. The rest of the coins are planned to be disposed of as follows:

10% of the total amount of coins will go to the development team and consultants, as well as to the first investors. The amount of remuneration directly depends on how productively the recipient participated in the creation and improvement of the platform.
10% is intended for employees who interact with the user community, as well as for the main partners of the company.
14% of the coins were donated to the ICON Foundation, which is promoting the project. At the same time, it should be noted that the activities of developers are paid separately.
The last 16% will be a contingency fund.

According to the developers, the number of issued coins could be increased in the future if users make such a decision. However, it will be possible to add no more than 20 percent per year. According to many analysts, this approach has a rather negative connotation, since it assumes the inflationary nature of the cryptocurrency.

How to buy or sell ICON?

ICON cryptocurrency mining is not provided by the developers. There is only one way to buy coins - buy on a cryptocurrency exchange. At the same time, there is no possibility of buying tokens for real currency either. To purchase them, you need to buy another cryptocurrency, which can then be exchanged for ICON.

To buy coins, you must register on Binance or another exchange and fund your personal account using a suitable currency. After that, you should choose one of the trading pairs and place a bet. In the appropriate window, you need to put down the cost, select the item "buy at market value" and decide on the number of tokens that you intend to buy.

The ICON rate to the US dollar at the time of this writing is $ 0.213883 per coin. The rate against the euro is 0.194313 euros for one ICX, the rate against the ruble is 14.26 rubles. The market cap of the cryptocurrency is USD 105,058,174.

Where to store ICON

There are many ways to store ICONs. While the coin used the ERC20 standard, all wallets compatible with it were suitable for storing it.

Today, the best option would be to use the official ICONex wallet. It supports most of the most popular operating systems.

In addition to ICX, the ICONex wallet is suitable for storing all blockchain-based cryptocurrencies connected to a single ICON network. In addition, through the wallet, you can convert cryptocurrency.

The future of ICON

The plans of the project developers are very ambitious, so there are plenty of difficulties awaiting them. The ICON official website lists the goals that are planned to be implemented by the end of 2019. The main areas on which the creators of the project focus are the securities market, insurance, banking, education and healthcare. It is worth considering each area separately:

Stocks and bods market. The developers expect that their technology will be widely used in the field of clearing and settlement, and by the end of 2019, the trading sphere will also be mastered.
Insurance business. According to the creators of the project, their developments are actively used by many leading insurance companies. There are plans to make their services public domain, which implies the creation of close partnerships in this area.
Banking sector. It is planned to create its own electronic payment system and further develop cooperation with the credit and financial sector.
Education. Education plans include the development of applications based on smart contracts that will be used by students to carry out all kinds of settlements and transfers of funds.
Medicine. ICON plans to help improve the quality of medical care. A technology is being developed based on a digital signature system, which is based on a blockchain. According to the developers, it is an innovative solution for data management in healthcare.

Aspirations look very impressive. Time will tell whether the development team will achieve success in the planned directions. Even if not all goals are fully met, the ICON platform will still occupy a large place in several significant segments of business life. If the cryptocurrency is used in all of the above areas, its popularity will certainly grow, and with it the market value of the token .