What is ICON?

ICON is a decentralised applications (dapps) network created in response to perceived limitations to developing and deploying ‘real-world applications’ for decentralised, consensus-driven, blockchain-based technologies. The team sees tremendous value in blockchains and seeks to make blockchain applications more accessible to developers and users by bridging the gap between the centralised world and the crypto world.

The ICON network acts as an intermediary between various blockchains and their applications by using its chain-agnostic and scalable Blockchain Transmission Protocol (BTP). The secure interoperability allows the network to be integrated with any smart contract-enabled blockchain, offering diverse governance and disparate networks like e-commerce, banks, universities, securities, and hospitals the ability to exchange fast and frictionless data.

Its native coin is ICX, a loopchain-based smart contract digital protocol that facilitates, verifies, and enacts a negotiated agreement between consenting parties within ICON.

A brief history of ICON

ICON was founded in 2017 by Min Kim of Switzerland-based ICON Foundation, a nonprofit organisation dedicated to growing and sustaining the network’s environment. Its initial coin offering (ICO) in September 2017 raised 150,000 ETH (approximately US$43 million), and the mainnet launched in early 2018.

ICON uses a five-pronged network that includes Community, C-Nodes, C-Reps, the Republic, and Citizen Nodes. Community is a network of nodes running compatible software, similar to Bitcoin or Ethereum's node ‘community’. C-Nodes run the code by each node member, while C-Reps is a class of C-Nodes that significantly contribute to the ICON network and have transaction confirmation voting rights. ICON Republic consists of users who connect different network communities, and Citizen Nodes are the nodal component of ICON Republic that don't have network voting rights but are run by dapps on ICON's ‘loopchain’ smart contract execution protocol.

In November 2021, ICON 2.0 was launched with improved performance, Java smart contract support, and preparation for future interoperability via the Blockchain Transmission Protocol (BTP).

How ICON works

ICON uses its Developers Portal to foster its dapp developers community by serving as a hub for development resources, knowledge sharing, community updates, and more. Managed by De:Nexo, the Developers Portals run ICON's Blockchain Transmission Protocol (BTP), which ICON aims to use as a connection for a broad network of blockchains with various governance systems, similar to how the Internet links computers through a common communication layer.

ICON tokens (ICX) may be transferred across BTP-connected blockchains. ICON also has an ICX-based decentralised exchange (DEX) that allows native assets to be traded throughout the ICON network.

ICX holders can stake and delegate ICX to Public Representatives (P-Reps), which have registered to participate in governing the ICON blockchain. This Delegated Proof of Stake (DPoS) implementation offers the best of both worlds — stakers can passively earn rewards, while technical individuals interested in setting up infrastructure and governing ICON can do so. To become a P-Rep, a team or individual must go through an on-chain registration process, which includes paying a 2,000 ICX registration fee.

What is ICON used for?

One of the primary concerns that ICON seeks to tackle is the market's lack of interoperability. ICON allows developers to build on one another's work and make use of the greatest features of each blockchain. This method saves time and allows developers to focus their efforts where they will be most effective.

In addition, the platform establishes standards to aid in the advancement of innovation. Through a community voting mechanism, ICON's decentralised structure also helps to prevent centralisation.

ICON has a number of benefits that make it a smart decision for organisations and enterprises looking to incorporate blockchain technology into their operations. Its improved interoperability may help developers save time and effort. The protocol is chock-full of developer tools and information, and makes it easy for developers to build and sell dapps. It also allows users to construct more diversified dapps that use the finest features of many blockchains to provide a superior user experience.