Blockchains were designed to create a network of markets. There are already a ton of different markets popping up in all sorts of industries, but it is necessary to connect them in some way. Atomic swaps are one manifestation of this idea, but recently a company has emerged with the potential to do great work in created an interconnected market.
ICON is a blockchain network that is designed to help various blockchain protocols interact with each other. Based in South Korea, the company depends on creating separate “communities” for each network, and connecting them using the ICON Republic. This can apply to blockchain networks, or other information networks like stock exchanges or identification databases. Anything that makes logistical sense to put on a blockchain, but might not be there already.
The ICON Network
The exchange of information through ICON is executed using a decentralized exchange. Each community is allowed to retain the ability to manage their own policies, so it doesn’t require much adaptation to bring new networks on board. Additionally, the use of its own DEX allows for ICON to produce verified ledgers to share among the relevant community. As always, the goal is to lower the need for third parties and transaction costs.
Any network of nodes that are ruled under the same governance system is considered to be a community. This applies to any company, protocol or non-profit in existence, and ideally ICON is able to transfer that decision-making mechanism to their blockchain representation of the community.
Decision-makers within a community are referred to as Community Representatives, who then have control over how their respective communities will interact within the ICON Republic.
The ICX Token
ICON’s token is designed to act as compensation for use of the time and resources of Community representatives who are helping to verify transactions. The token is currently available on Binance, Upbit, and Bitthumb, where it is readying for the process of transition from ERC-20 token to its own blockchain.
This is becoming a more common move, and generally is a sign that a company is trying to avoid scalability issues. The process of moving the $42,750,000 worth of ERC-20 tokens over to its own blockchain is a tenuous process, but looks to be complete on September 25th.
Recent Performance Has Investors Excited
With a current price of $0.84 per token, there has been a 35.77% increase in the value of ICX in the last week. This is after several positive signals emerged in the market to help give it momentum.
First, ICON announced their intention of buying back $5 million worth of tokens, which naturally increases investor’s confidence in the protocol. Buyback projects like this generally create the feeling that management knows something everyone else doesn’t, and traders naturally jump on this.
Another macro factor here is the fact that Bitcoin trading volume has dropped significantly exactly as ICON’s daily trading volume began to increase. This could represent a shift in market sentiments from support for big protocols back to more altcoin-esque tokens. All of these factors combined with the current transition to its own blockchain indicate positive things for the future of the ICX token, which makes this a great time to buy. There is some momentum, but the token is still cheap.
Featured image courtesy of Shutterstock.