ICON (ICX) review! ICON is a cryptocurrency & platform attempting to hyperconnect the blockchain through the ICON Republic, ICON DEX, nodes, & Nexus using the Loop Fault Tolerance consensus algorithm.
ICON is a platform aimed at building one of the world’s largest decentralized networks by creating an ecosystem in which independent blockchains can connect and interact with one another through smart contracts. ICON’s vision is to “Hyperconnect the World” with its loopchain technology. Community within ICON is a protocol or an individual blockchain that has its own governing system. The infrastructure of each community is made up of Community Nodes (or C-Nodes). C-Reps, short for Community Representatives, act like elected officials for their communities, and are a governance component within the ICON Republic. Citizen Nodes are also components of the ICON Republic. Through dapps created on the loopchain, anyone can participate as a Citizen Node. Portals are nodes that allow C-Reps to connect to ICON’s Nexus, which is a loop-based blockchain. Portals connect through the Blockchain Transmission Protocol, or BTP, which ensures that the connected independent blockchains can easily transact with one another. BTP ensures independent governance and only makes mutual connections when needed. Even though each blockchain is free to have its own design and consensus algorithm, consensus in Nexus and the ICON Republic is based on Loop Fault Tolerance, or LFT. ICX (ICON’s native token), is embedded in Nexus and will be used by interconnected blockchains to transfer values between them. Nexus also has reserve channels that allow anyone to issue bonds and purchase ICX issued from Nexus. Notary Channels are what process BTP. Nexus’ Public Channel will be open to anyone who wants to participate in ICX transactions as well to those who want to use or create different dapps. Citizen Nodes will be able to download and use these dapps from ICON’s DAPP store. Nodes on the Public Channel will be divided into Light-Client based nodes—which can register and confirm transactions—and Full Nodes, which are tasked with validating transactions. ICON uses its own Loop Fault Tolerance consensus algorithm, which is based on the Byzantine Fault Tolerance (BFT) consensus algorithm. LFT on the other hand (or Loop Fault Tolerance) ensures finality, thus removing the possibility of network forks. Validation nodes transfer the transactions. The leader node will then create a block from the collected transactions, sign it, and transfer it to all other verification nodes. After each of the verification nodes receives the block, they must confirm the creation of the block, check if the block level and the prior hash are correct, and validate the block data. If all three steps are correct, “vote data” is created and transmitted to every node.
SCORE (short for Smart Contract on Reliable Environment) indicates Smart Contracts provided by a loopchain. SCORE doesn’t run on a separate Virtual Machine. Instead, it runs directly in real runtime based on a container separated from the blockchain process. This means that even if there’s an issue with Smart Contracts, the basic blockchain can still operate within set parameters. SCORE also has a repository feature for versioning, which basically means that it doesn’t require data migration with each update, thus making the process quicker & easier.
ICON boasts its own decentralized exchange, or DEX. DEX enables automated, anonymous, and trustless transactions. Through DEX, ICON Communities will have another gateway of connecting to the ICON Republic, in addition to the C-Rep portals. DEX will set currency reserves for each blockchain community, allowing for the real-time exchange of value within the ICON Republic, using its coin ICX as the intermediary currency. ICON’s reserve means that community members will be able to trade currencies without using public exchanges. Blockchains connected to the ICON Republic will be able to engage in trades and transactions, and exchange rates will be set by DEX using an Artificial Intelligence Analysis Model.
The AI Analysis Model is one of the key features within its DEX, and it can be established based on accumulated information, like transaction frequency, total call volume, or the price involved in different cryptocurrency transactions. AI also determines the ICON Incentives Scoring System (or IISS for short). Each network node's contribution will be rewarded with an amount of ICX calculated through IISS based on factors like the node’s frozen ICX, C-Rep status, ICX exchange volume, ICX exchange value of the whole community, or ICX volume traded through their DEX.
Disclaimer: This is not financial advice. I absolve myself of all responsibility (directly or indirectly) for any damage, loss caused, alleged to be caused by, or in connection with the use of or reliance on any content, goods or services mentioned in this article. As usual, do your own research.