ICON aims to hyperconnect the world where people actually live and organizations actually do business.
ICON obfuscates the need for exchanges by connecting independent blockchains with different governances, allowing them to transact directly and in real time.
How ICON Works - A Practical Example
Let’s say that David falls ill and requires hospital treatment.
Thankfully, both the hospital and David’s insurance company are part of the ICON network.
The hospital securely passes details about Dave’s care to his insurer and his insurer pays for it using ICX. No paperwork, no lost personal records, no hassle for any party involved.
ICON is already compatible with a vast array of blockchain protocols. As such, decentralized applications (DAPPs) that are built on ICON benefit from compatibility with and scalability across the entire blockchain ecosystem.
The ICON Republic
The connected network that Dave’s hospital and insurer belong to is the ICON Republic. Participants select or customize blockchains that fit their specific needs and connect to the ICON Republic through Community Representatives.
Community Representatives manage verification of transactions and governance within the ICON Republic.
ICON is based on an enterprise blockchain technology called loopchain, developed by ICON Loop. It uses a consensus algorithm that allows real-time transaction processing, based on a consensus algorithm called Loop Fault Tolerance (LFT). This is an enhanced form of Byzantine Fault Tolerance and operates similarly to Delegated Proof of Stake (DPoS).
ICON rewards nodes that validate transactions with newly minted ICX. The distribution is controlled by DAVinCI-based AI, which takes into account the money supply, transaction size and inflation.
ICON offers an enhanced smart contract feature called SCORE, the ability to create multiple, independent channels with integrity ensured on a channel basis, and a tiered PKI-based authentication process.
Under ICON’s unique decentralized governance model, connected blockchains retain their own governance methods, but can also participate in making decisions for ICON through proportional representation.
ICX holders vote for teams to represent them. The top 22 teams have one governance vote each. The top 100 teams vote for projects funded by ICON’s Contribution Proposal Fund.