✔️ Information reviewed and updated in February 2024 by Pedro Martínez González
For many people, the high volatility of currencies is one of the reasons why investing in them is unattractive. Fortunately, more and more cryptocurrencies like ICON incorporate different ways to reduce volatility and increase their value.
An example is found in ICON, a virtual currency which has the backing of large companies and even a government. This makes the trust and certainty it provides to users much greater, thus translating into greater stability, at least legally, and the possibility of acquiring value quickly.
✨What is ICON? ✨
We can define ICON as a platform which has its own cryptocurrency, ICX. Both are backed by Blockchain technology of their own creation, as well as have the support of the Government of South Korea, as well as its ally, Samsung.
Self-defined as a decentralized network made up of Blockchain communities, this network is responsible for creating its own chain of blocks incorporating new branches. This makes Blockchein technology and ICON cryptocurrency itself adaptable to both the needs of companies using this platform and the market.
Another point in favor is that ICON allows the creation of DApps, decentralized applications that are based on Blockchain, as well as ICOs. The generation of ICOs is designed to act as a solution for companies mainly focused on the service sector.
It could be said that one of the objectives of ICON is to build communities based on the Blockchain where each node of the chain is an individual. In this way, said community could be used to carry out different tasks such as elections subject to the decisions of each community, that is, a vote.
✨Differences between ICON and other virtual currencies✨
- Join blockchains: One of the functions that many cryptocurrencies cannot perform is to link Blockchain chains. In ICON a different system is used, a distinctive protocol which allows to join Blockchains infinitely which allows creating huge chains with greater volume of data.
- Transaction speed: Compared to cryptocurrencies like Ethereum or Bitcoin itself, the speed of transactions in ICON is much higher. This thanks to the use of the LFT (Loopchain Fault Tolerance) consensus algorithm which allows greater volume and speed when making transactions.
- Multichannel: Similarly, instead of using a single channel as most cryptocurrencies do, a multi-channel structure is used here. This allows simultaneous transactions through different channels which allows each channel to be configured independently. Thus, the speed of transactions can be increased.
- Artificial intelligence: The cryptocurrencies that we already know require human intervention to validate transactions, for example, miners. Instead, ICON operates without the need to use people in the process, since it uses Artificial Intelligence technology. This makes the operation 100% technological.
- Everyday use: Finally, we can find that ICON is a cryptocurrency focused mainly on domestic and business uses, so it can be said that it is a currency focused on reality. This through the use of artificial intelligence technology known as DAVinCI, which is designed to optimize the operation of ICON.
- Blockchain: It is also worth mentioning that ICON does not work with the same Blockchain that other cryptocurrencies use as it happens with Ethereum and its base. Here there is a 100% Blockchain developed exclusively for this cryptocurrency which allows a better operation and frequent updates.
The main characteristic of the technology behind ICON is that it works with its own Blockchain called Loopchain which works through a consensus algorithm. The ability to add Blockchain blocks and functions to the Loopchain are the main advantage that this technology offers.
We can define the Loopchain structure as a 3-level structure. At the first level we have individual nodes, that is, individuals. In the second level we have the communities of nodes which are the grouping of nodes. Lastly, we have the ICON Republic, which is the entire network or ecosystem.
The nodes can be connected to each other so that a network or interconnection between nodes is created, which makes the transmission of information more efficient.. In addition, the use of artificial intelligence allows the distribution of rewards to be much more fair and efficient.
Client management or Light Clients (clients without C-REP) are the main method to receive rewards. Some functionalities are also incorporated into the Loopchain which make the operation much more complete. An example is in the ability to execute smart contracts as in Ethereum.
One of the main disadvantages of ICON is that this cryptocurrency cannot be mined because all of them have already been issued.. That is why, unlike virtual currencies such as Bitcoin or Ethereum, we cannot access them by performing Blockchain work.
Although we can receive rewards, all of the ICON coins have already been released for the most part. According to data from the same company, we have 800,460,000 ICXs available. Controlling mining helps it maintain its value by reducing excess supply in the market.
✨How can I get ICON? ✨
As we already told you before, it is not possible to mine ICON so there are only two options available to get these coins. The first is to negotiate with an individual to buy or exchange their coins, although this is not so cheap.
On the other hand, we can buy ICON on ICON's Cryptoexchange called DEX. In addition, DEX has its own Wallet so buying it is much easier and simpler, without incompatibility problems. We can also find this cryptocurrency in other exchange houses such as Binance, Huobi or Gate.io.