Icon (ICX) – All you need to know

What is Icon?

Icon is a framework for creating a community of blockchains that can all work together. It runs like a union of states, where each blockchain platform is a state with its own rules that uses Icon to communicate, trade, and share information with any other state. All this is powered by the ICX coin, which is used for payments, voting and to earn rewards.

By offering a place for blockchains to interact like this, Icon creates a decentralised exchange of information that’s not constrained by borders or government regulation, and can be used to solve practical problems in the real world. Icon originates in South Korea, where it’s already received government backing, and launched in 2018.

How does Icon work?

Icon works by creating a common set of rules so all its communities can talk to each other. It’s essentially a decentralised exchange where blockchains can come together and all transactions between them are stored on Icon’s own blockchain. This removes the need for any central body to act as governor of the network.

The other crucial part of Icon’s infrastructure is its voting system. ICX holders can stake their coins – locking them up for a short period so they can’t be used for anything else – to allow them to vote for representatives to act in the best interest of each community on Icon.

Voting also has another aspect, as holders also vote on public representatives to add new transactions to the blockchain, and everyone is rewarded for contributing. The biggest rewards go to those who contribute the most, but you can also be punished if you use your coins to vote for a bad actor.

Fact-checking & references

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