ICON cryptocurrency guide advises where to buy and how to buy ICON. This guide also contains the markets, value, trading, investing, buying, selling, transactions, blockchain, mining, technology, advantages, risks, history, legislation, regulation, security, payment, networks and many other interesting facts about ICON as well its status in the world of cryptocurrencies.
ICON, Saturday, 2021-04-10
- 1 What Is ICON?
- 2 Beginner's Guide to ICON
- 3 Where and How to Buy ICON?
- 4 ICON Markets
- 5 Where to Spend or Use ICON?
- 6 How Does ICON Work?
- 7 ICON Regulation
- 8 Is ICON Secure?
- 9 History of ICON
- 10 ICON Videos and Tutorials
- 11 See Also
What Is ICON?
Since 2009 when cryptocurrencies debuted, the race to create a better cryptocurrency appears to be gaining momentum. As more people come to accept the cashless society, the governments see them as a new force to outdo their operations. But it is now emerging that the blockchains are here to stay because they promise all the solutions that every jurisdiction, market, institution, and startups need to move to the next level.
The aim of pioneer cryptocurrencies was providing an alternative method of payment that was decentralized and cheaper. The subsequent generation of cryptos targeted remedying the flaws reported in the pioneers. And the latest in the lineup is the next generation of cryptos that are targeting enhancing hyperconnectivity. ICON is one of these next-generation cryptos. Therefore, what exactly is this ICON?
ICON is an open source cryptocurrency and a blockchain network that target creating a massive ecosystem for all players to coexist. It aims to hyperconnect the world by allowing other blockchains and players to link via loopchain technology and smart contracts. The project comprises of five core components.
- The Decentralized Exchange that allows trading of ICX (native coins in the ICON network).
- The Public Channel that facilitates trading using ICX and the related interaction with decentralized applications.
- The Reserve Channel. This is used for creating new ICX in return for bonds that are issued by participating channels.
- The Representation Channel that helps in confirming transactions in the ICON system.
- The Notary Channel that connects transactions from other blockchains to the ICON nexus/ecosystem.
Beginner's Guide to ICON
ICON is a unique cryptocurrency. It is the first cryptocurrency project that targets to host all other blockchains and businesses in the same ecosystem. The project was founded by DAYLI Financial Group that is registered in South Korea and Japan. However, the ICON development team is run by ICON Foundation that is registered in Switzerland.
After releasing their protocol and running a successful ICO (initial coin offering) that only lasted for six hours, the interest in the crypto has exploded. Most cryptocurrency investors hold the view that ICON will grow to become the next biggest crypto in the market.
If you are new to cryptocurrencies, this is one unique crypto that holds a lot of potential. The list of partnering institutions and fast-rising interest can only mean one thing; the potential for ROI (Return on Investment) is very high. To decide on whether to join the ICON network, it is crucial to carefully understand its structure, the architecture of the ecosystem, and the risks involved. You need to ask all the questions and get the right answers.
This guide is a comprehensive review of ICON to bring you answers to every question running through the mind. It carefully dissects this project that has won the tag blockchain of blockchains to establish how to buy its native coins, how to sell them, the risks, and associated profits.
The guide further explores the blockchain technology in ICON, mining, and how to recover lost ICX. Welcome to this exploratory guide to know more about ICON and get all your questions answered.
Where and How to Buy ICON?
Though the main target of ICON is to operate as the blockchain of blockchains, it also runs as a crypto network in the same ecosystem. Its native asset or tokens are referred as ICX. The sheer outlook, the concept, and espoused potential of the ICON project have made the native tokens irresistible. Many people see ICON as the next biggest project that could surpass even Bitcoin by far. To take advantage of this potential early enough and enjoy exponential growth over time, you need to start by acquiring the ICON tokens. Here is where and how to buy ICON (ICX).
- Make sure to acquire an appropriate cryptocurrency wallet. This is the location where the ICX will go after the purchase process is completed. You need to look for a wallet that is compatible with your platform (phone/computer), and that guarantees high security.
- Identify an exchange that is trading ICX. Though ICON is relatively young, only a few cryptocurrency exchanges are trading it. One thing to underscore at this juncture is that most exchanges are an easy target for hackers. Cryptocurrency traders are always at a higher risk of getting attacked at the exchange level. This implies that you need to select the exchange with a lot of care to ensure that your ICX are always safe from attack. For example, ensure that only the exchanges without a hacking history are selected. Some great examples of exchanges that are trading ICON include Binance, OKEx, and CEX.io.
- Buy directly from those who have the tokens. Since 2009 when cryptocurrencies debuted, a lot of communities that facilitate treading have emerged. These are clubs of people that come together to share information about the progress of the blockchain technologies around the globe. They have also become important selling points for people who want to trade ICX without restrictions drawn by exchanges. One great example of such a club is the LocalBitcoins.com. You simply visit the club's website to meet the members and check those who are willing to sell their ICX.
- Purchase from cryptocurrency ATMs. The idea of cryptocurrency ATMs is growing fast. These are special booths that look like standard ATMs. You simply need to visit them and buy ICX directly into your wallet. The only challenge is that most ATMs by the first quarter of 2018 were only accepting Bitcoins. This means that you have to buy Bitcoins and convert them to ICX at the exchange.
NOTE: No matter the method of payment you opt for, you must have a cryptocurrency wallet. Even when making direct purchases in a local club, a wallet will still be required because ICX resides only in the native ICON network.
One thing that makes cryptocurrencies stand out is that they are not minted like the standard coins or printed like notes. They only exist as digital assets in the respective networks. Do not be deceived by the lovely images of ICX coins flashing on the screen of most websites talking about this crypto. Rather, they can only be stored in a digital wallet. These are specially designed software and hardware meant to secure your ICX. But the concept of ICON wallet goes deeper than this.
While the accepted definition of an ICON wallet is a storage location, the reality is that ICX (the native coins) NEVER leaves the blockchain network. In reality, the ICON wallets do not store the native tokens. What the wallets store are the special codes referred called private keys and public keys that help to identify your tokens in the network.
The private keys are unique identifier codes that help to point at your account. They bring your tokens to life so that you can send or trade them. Every time that you need to make a transaction using ICX, the private keys will be required. It is only you and the wallet that knows the private keys.
Unlike the private keys, the public keys can be shared in the network. They are codes that you give the people who want to make payment into your wallet. Though the public keys could be a single code depending on the wallet, there are instances when the wallet can generate a number of them to help maintain a higher level of anonymity.
The top five ICON wallets on the market today
1) Ledger Nano S (hardware wallet).
- This is one of the leading cryptocurrency wallets in the market. It has won praises from the crypto community because of its unique security features. When you acquire a Ledger Nano S, all the ICX are stored offline in a special chip inside the wallet.
- When making transactions, the crypto coins do not leave the wallet. This assures users that the risk of losing their altcoins through hacking is very small. So good is the Ledger Nano S wallet security that you can even use it on a compromised computer without worrying that ICX will be lost.
2) Trezor (hardware wallet).
- This is another hardware wallet that resembles Ledger Nano S in so many ways. The wallet stores your ICX offline and requires the owner to use a password to bring the coins to life when making transactions. When you use the wallet for the first time, it generates a keyword recovery seed phrase that you should use in case the wallet gets lost or damaged.
3) MyEherWallet (desktop wallet).
- This is a desktop cryptocurrency wallet that was initially designed to support Ethereum cryptocurrency. However, it supports most cryptocurrencies that run on the Ethereum blockchain network or using smart contracts. The wallet is a great option because it gives users full control over their keys.
- Unlike the hardware wallet, MyEtherWallet requires users to take absolute control of their security and coins. For example, you are required to be extra careful with the sites you visit on the computer to avoid phishing attacks. You are also required to maintain the recovery seed phrase carefully and use it carefully in the case of damage.
4) MetaMask (web-based wallet).
- This is a web-based wallet that allows you to access and manage ICX right from the browser. It operates as an extension for accessing decentralized applications in the Chrome web browser.
- After months of speculation and waiting, ICON Foundation finally released the ICONex wallet on 27th of February 2018. The release is a beta version of the wallet that runs as a Google Chrome extension. To use the wallet, simply visit Google Chrome Web Store and follow these installation instructions.
- (a) Visit the ICON foundation website and hit the Wallet button.
- (b) Then, navigate to the Chrome extension page and select Add-On plus Chrome button (upper right-hand corner).
- (c) Commence to Chrome installation, and then hit the ICON logo (upper right-hand corner).
- (d) Navigate to ICONex, and select create a new wallet.
- (e) Select an appropriate wallet (you have two options; ICX or Ethereum). If you select ICX, the wallet will only store ICON. However, selecting Ethereum wallet means that you can store ETH and other ERC20 compatible tokens.
- (f) Set the wallet name, create password phrase, and download the keystore files.
- (g) Navigate to the private keys page to set the private keys and click complete.
Why ICONex wallet stands out from others
While the procedure for installing the wallet might look lengthy, it sets the wallet well apart from others. It gives you absolute control. It is not a matter of simply generating the wallet password and private keys. Rather, you can use the characters of choice. This implies that it will be easy to remember the keys and access codes without worrying about a loss.
The ICONex wallet architecture makes it possible to support multiple tokens. This means that you will not need to have many wallets to access and transact various ERC20 compatible tokens. ICONex is a reliable and convenient option.
The wallet comes with many security layers that make it very difficult for hackers to break. It is an ERC20 based wallet, users have to set a wallet password, and use their preferred private keys. To prevent the danger of loss, the wallet has an advanced keystore files (backup) that will make it easy for ICON restoration in case of a loss.
If you are searching for a wallet to use in the ICON network, ICONex is one great option to consider. Note that the version was still a beta version by mid-March 2018. Therefore, you can expect some adjustments as well as versions for Android and iOS in the coming days.
Where to Buy ICON with Credit Card?
Credit cards are a common method of payment for both conventional and online shopping. But they have also become an easy method of paying digital assets. To pay for ICON with credit cards, you need to identify the right platforms that accept credit cards for payment. You also need to have an appropriate cryptocurrency wallet. You can buy ICON with credit cards from the following locations.
Where to Buy ICON with PayPal?
PayPal is a digital wallet that operates just like the conventional bank account because it reflects only the cash you own physically. For example, you have to transfer $100 cash from the bank to the PayPal account to be able to use it. However, PayPal does not allow users to make payment for cryptocurrencies or crypto related transactions. If your account is found to have done such a transaction, it will be penalized. Therefore, there is no way to buy ICON with PayPal. If the cash to buy ICON is in PayPal, simply load it into the credit card or offload to a bank account before buying ICX.
How to Buy ICON with Wire Transfer?
Banks are the most trusted entities when it comes to finances. People opt to use banks to run most of their financial transactions including seeking advice and borrowing cash. Now, you can also use the bank wire transfer to purchase ICON using the following process.
- Start by getting an appropriate wallet.
- Identify a cryptocurrency exchange that is trading ICON and that accepts wire transfer such as Binance and COSS.
- Open an account with the exchange and verify personal details.
- Buy the number of ICX you want and select pay with a wire transfer. This will require you to add personal details so that the exchange can make a claim.
Note that the transaction will remain pending until the money hits the exchange accounts. Besides, the transaction will cost you more and take longer compared to the standard crypto to crypto trading. In most of the cases, it will take between one and two days depending on where you are.
Where to Sell and Trade ICON?
When investors join the ICO network, the main target is making optimal returns on their investment. You can only achieve this through selling and trading ICX on different platforms. The main trading platforms are the top exchanges that accept ICX. To trade effectively, you need an appropriate cryptocurrency wallet and enough ICX. Then, you have to select the right exchange.
One thing that traders must appreciate when selecting the trading platforms for their ICX is the looming threat of attacks. Unlike the ICON network that is under full-time surveillance from the ICON development team, the exchanges are a different thing altogether. Because they operate under the local administration regulations, users have to register for trading accounts and verify their identities. It is, therefore, essential to ensure you only pick the best trading platform. Here are some useful tips to assist you.
- Go for the platform that has been in operation for long and won the affection of the crypto community.
- Consider the platforms without hacking history.
- Only join the trading platforms with low charges.
- It is advisable to join the exchanges that allow traders to trade in very many cryptocurrencies.
- The exchanges that are fast and allow users to move their coins into their wallets are more secure.
The trading platforms in the crypto market have been growing at a very fast rate to cater for the expanding community. Even before ICON’s stability has been established, the trading platforms have already started listing it in their systems. This demonstrates their confidence in the new crypto. Here are some of these platforms you can visit to sell and trade ICON.
How Much Are the Transaction Fees of ICON?
The main reason for cryptocurrencies entering the financial market and drawing a lot of interest is the promise to lower the transaction costs. Unlike the conventional banking system that charges very high fee to pay staff and maintain profitability, it is very different at ICON. In their whitepaper, the ICON team indicated that the cost of transactions would be 0.01 ICX. What this means is that the value will change with time. If the value of ICX changes upwards, the cost of transactions will also take an upward shift.
Since 2009 when cryptocurrencies debuted, the markets have been growing rapidly to provide the already enthralled community with high diversity. The markets are aimed at helping cryptocurrency enthusiasts to join and opt out at will easily. The markets operate like forex trading platforms though they deal with crypto coins as opposed to fiat currencies. Note that the requirements for using various markets differ because they are guided by the local laws. Here are the top ICON markets that you should consider using when buying or selling ICX.
- This is the main trading platform that was trading over 60% of the ICX by early 2018. Though the exchange was launched in mid-2017, its growth has been explosive. In only six months after launch, the exchange was valued at more than two billion US dollars. The exponential growth reported by Binance was largely due to its unique features.
- The platform has multiple device support. This implies that it allows platforms based on HTML5, web, Android, Wechat, and direct PC access for direct trading. Besides, they also have a phone app that allows users to follow their ICX on the go.
- It has a capacity of handling up to 1.4 million transactions per second. The processing speed makes Binance one of the fastest in the industry. This speed and growing reliability have ensured that its user base continues growing.
- The Binance system is available in multiple languages which allow the trader to follow and speculate crypto asset price shifts easily. When this is coupled with advanced analytics, even new traders on the platform, are sure of trading like pros.
- HitBTC is one of the leading cryptocurrency markets today because of its reliability and acceptance across the globe. ICON users prefer using it because it has over 150 tradable digital assets. This means that you can trade ICX for other cryptos, ICOs, and tokens.
- Its main selling points in the cryptocurrency market include low fees and high liquidity. You will only need to pay 0.1% of the transaction to trade in the platform. This is very small compared to other markets that charge as high as one percent. Users also prefer this platform because of its stable uptime and advanced application building protocols.
- The biggest shortcomings of the HitBTC include slow withdrawal timeframe and its hacking history. In 2015, the platform was hacked and thousands of altcoins lost. This attack has always made users to shy away from using the platform.
- COSS (Crypto One Stop Solution) is a platform that targets to provide all solutions for the digital economy. It was started in April 2017 to operate as a crypto wallet, a payment gateway, and a cryptocurrency exchange. In addition to this, it also has its native coins referred as COSS.
- The main features of COSS exchange include instant transactions. When traders use the exchange, they are allowed to move coins to their wallets immediately. This means that the danger of losses at the exchange is lower compared to the exchanges that insist on holding traders coins for a longer period.
- They allow users to trade in many cryptocurrencies. By including the best performing and new cryptocurrencies, it implies that an ICON trader will never miss a trading pair that is profitable.
- To enhance the security of the network and users’ ICX, COSS uses several security features. Users have to provide advanced 2-factor authentication and are allowed to move their coins to cold storage. Note that you can also customize the security settings to suit personal needs.
Value of ICON
The interest in ICON project came out in its pre-sale ICO that lasted just 6 hours on September 20th of 2017. The entire design and architecture of the ICON system have made the community to remain bullish that great days wait ahead. However, the value of ICX has been shifting downwards between the end of the ICO sale and early 2018.
The value of ICX was $9.98 at the opening of 2018 before taking a steady downward trend. By early February of 2018, ICX was trading slightly less than $5 and ICON market capitalization was $1.5 billion. However, the enthusiasm of the ICON team and great expectations from the community are expected to continue growing the demand for ICON and help to ultimately raise its value. Despite this positive focus, ICON’s ability to grow in value will depend on the effectiveness of its system especially in attracting more organizations into its network.
Is It Profitable to Invest in ICON?
ICON is a highly profitable project to invest in. Since the onset of cryptocurrencies in 2009, the common trend has been commencing at ICO stage before advancing into a mature and highly potential system. This is the route that EOS, Filecoin, and Tezons among other cryptos took. Though ICON is on the same track, its value has started at a very high point.
The crypto community and experts are bullish that the coming days will be explosive. Already, very many institutions and businesses have joined the ICON ecosystem to take advantage of the blockchain technology. By allowing even governments to form their own blockchains with individual contractual terms and conditions and plug them into ICON nexus, the value and profitability of ICON can only grow.
Note! The success of ICON in becoming more valuable is hinged on many things. Just like other cryptocurrencies, ICON needs to maintain the target community excited. Here are more factors that will determine the profitability of ICON over time.
- Ability to keep off attacks.
- Better response to users’ issues.
- Attracting more partners into the network.
- Working harder to make it a major payment network.
Where to Spend or Use ICON?
The acceptability of any cryptocurrency in the market is gauged by the ability to use the native coins in conventional shopping. However, ICON is still very young, and many stores are evaluating whether to add it to their list of accepted cryptos for payment. Most of the partners that have joined the ICON network have indicated they will add it as a payment network in due time.
For those who already have ICX, it is still possible to use them to make payment. You simply need to convert to top cryptos such as Ethereum and Bitcoin that are accepted in most stores. However, this will involve some cost at the exchange level.
Can ICON Grow to Become a Major Payment Network?
Yes, it can. However, the best way to put it is that ICON is already on its way to becoming a major payment network. The architecture of ICON targets creating an ecosystem that allows everybody to get onboard and enjoy the benefits of blockchain technology.
By the first quarter of 2018, ICON already had major partners who had joined its ecosystem. These included learning institutions, hospitals, insurance companies and private businesses. This means that such businesses are adding the list of users on the ICON payment system.
By setting out the platform that financial institutions can use, ICON has broken the barrier created by other cryptos. For example, banks no longer need to see ICON as a threat. All they need to do is create their own smart contracts or individual blockchains and plug them into the ICON nexus.
Though ICON is very young, it is headed by a very tech-savvy team. The DAYLI and ICON development team comprised of tech experts who are willing to go to any length to deliver higher value. The organization is employing the latest Artificial Intelligence and engaging the current governments to address their concerns. The sense of commitment to take technology to the next level and desire to have all the people onboard has won ICON a lot of trust. This is making more people prefer using its system for payment than others.
Businesses are free to operate in the network without compromising their own rules or terms and conditions. By crafting smart contracts and using the networks, it means that they have access to more clients who are already in the system. When this is coupled with the reduced cost of transaction and speed, it indicates that ICON could race ahead of other networks to becoming a major payment network.
How Does ICON Work?
When DAYLI Financial Group launched ICON, it became clear to people that the network was more than a cryptocurrency. In the ICON’s white paper, the cryptocurrency network is presented as a blockchain of blockchains. This means that it has all the characteristics of the standard blockchain, but its protocol also provides a complete ecosystem for hosting other blockchains. Therefore, how does this complex model operates?
The first level of ICON cryptocurrency operation
This is the basic model of operation where ICON utilizes its native token to facilitate sending of funds. Users in the network use ICX to send the value on a peer2peer model. When a client wants to send cash, he/she gets equivalent value of tokens before sending to the target address in the same network.
The above mode of operations means two things. One, the ICON network has made it possible to bypass the centralized organizations when making payments. Two, the transaction costs are reduced to the lowest possible level because there is no profit-seeking organization.
To complete this peer2peer method of operation, the ICON network employs the Loop Fault Tolerance (LFT) algorithm which is an advanced model of Byzantine Fault Tolerance (BFT). This is a type of consensus Proof-of-Stake algorithm used in the ICON network to help increase the speed of transactions and security. The algorithm involves using delegated nodes and grouping them into clusters for confirming transactions. Though it is very complicated, it is faster and highly secure compared to the standard proof-of-work algorithm used in Bitcoin.
The ICON republic and its application
The ultimate ideology of ICON is to become the blockchain of blockchains. This means that other blockchains can plug in the network while businesses will be able to run their smart contracts on the same expanded ecosystem. How is this possible?
The ICON development team looks at the entire ecosystem as a republic. They actually call the entire ICON system ICON republic. This is the platform that will hold all the blockchain communities and institutional smart contracts. The ICON republic is the governing head or the core protocol that makes it possible for all the communities to link and operate in harmony. It sets the standard, and the developer team ensures that the system is not compromised.
Every community that joins the ICON republic will not simply dive inside. Rather, it will exist as an independent unit, but linking using a special community representative (referred as C-Rep). These C-Reps will operate as portals for all the communities that are plugged into the ICON republic. All the communities and blockchains in the ICON republic will be able to exchange their native assets using the ICON decentralized exchange. To get it right on these components, here is a closer look at each feature.
- The ICON republic: This is the whole ICON ecosystem that facilitates coexistence of various communities. The republic allows each community and blockchain to use its own consensus mechanism. However, the ICON republic and blockchain employs the Loop Fault Tolerance consensus algorithm and has no direct control over individual communities and blockchains.
- The ICON AI and IISS: The ICON protocol employs artificial intelligence for managing the exchange rates, reserve values, and calculating the network Intelligent Incentive Scoring System (IISS). The AI is the main determinant of reward to those who contribute in confirming transactions in its network. The main factors used by IISS when calculating the reward include the nodes quantity of ICX, the C-Rep status, the ICX-Exchange volume, and traded volume.
- The ICON DEX: This is the Decentralized Exchange in the ICON network that facilitates the change of value in tokens. All the crypto networks forming the ICON network can exchange their native tokens using the exchange more promptly. Note that the main focus of DEX is currency transfer as opposed to governance.
- DAPPs (decentralized applications): The ICON republic allows its affiliates communities and businesses to develop and deploy decentralized applications. The ICON DAPP store will help to take the applications to the community so that more users can adopt and use them as defined in the respective community (developer’s smart contract details).
Does ICON Use Blockchain Technology?
Yes, the ICON uses blockchain technology. The ICON network is made of individual blocks that combine to form the public ledger. When users in the network initiate transactions in the network, the ICON system uses delegated nodes to confirm the details before they are enjoined into the public ledger. The blocks are arranged in chronological order so that only the latest appear at the end of the blockchain.
The consensus model used by ICON is the Loop Fault Tolerance (LFT). This algorithm targets helping to reduce communication overhead through message consolidation. The nodes used to confirm the transactions are clustered into groups for faster and more efficient operations. For example, in the case of a dispute, the resolution can be reached faster without the need for a fork.
By grouping the nodes and removing the intermediaries, the LFT uses three main steps to make the system more reliable and better than the standard proof-of-work. These steps include pre-preparation, preparation, and commitment. Under this system, the ICON LFT applies advanced spinning where the process of confirmation reduces the number of nodes required to generate new blocks. This means that only a very small number, the Community Representatives (C-Reps), are used for adding new blocks. The other nodes only participate in the voting system.
The procedure for adding a new block through the consensus system starts from the transaction initiator before moving to the verifying nodes (delegates) that pick the transaction and send to the reader nodes. The reader nodes confirm all the details and hold consensus in small clusters before relaying the collected transactions back to the verifying nodes. The verifying nodes are responsible for adding new blocks to the ICON public ledger.
Cryptocurrency mining is the process of confirming transactions in a network for a reward. For blockchain networks such as Bitcoin that employ Proof-of-work consensus algorithm, the mining process is used to release the coins progressively until all the tokens enter the network. However, ICON employs a different type of consensus algorithm that uses AI (Artificial Intelligence) to determine who gets to confirm the transactions and the reward he/she gets. This means that you cannot simply join the ICON network targeting to optimize the hashing power to get a reward for confirming the largest number of transactions.
ICON protocol employs the latest consensus algorithm referred as Loop Fault Tolerance (LFT). The main focus of the LFT is facilitating faster transactions in the network and cross-community communication. This is achieved by reducing the the confirming nodes and grouping them. In the event of a conflict, the process of achieving consensus can be repeated faster until an agreement is reached as opposed to forcing a fork.
To participate in confirming transactions, you can occupy any of two levels of the ICON nodes. You can join the verifying nodes that are charged with the role of adding new blocks or the reading nodes that help to gather information and participate in consensus building.
The ICON protocol IISS (Intelligent Incentive Scoring System) picks the participating nodes based on their state in the network. The IISS checks for the quantity of ICX you have in the system, the Community-representative status, and trading volume to determine if you will be selected to confirm transactions. The criterion is also used to determine the amount that each node involved in conforming transaction will be rewarded with.
What Are the Advantages of ICON?
The thrill of joining crypto networks comes from thoughts of owning part of the network. Unlike banks that make users feel passive, ICON network users own the network. It is this notion of satisfaction that keeps drawing more people into the network. Here are additional benefits that you or your business will draw from joining the ICON network.
- The ICON network allows users to operate without worrying about third-party seizures.
- Today, a legal battle can easily knock on your door. That is right. In fact, you do not need to commit a criminal offense. From your neighbors, colleagues, fans on social media, insurance company and even road users, you could get sued for minor or even major offenses. But the worse thing about these lawsuits is that they make it very easy for judges to freeze your accounts anytime.
- Now, ICON provides a great hiding point that no authority can get you. Because you are anonymous, no court or authority can tell what your investment is or even freeze it. Therefore, you can live in absolute freedom.
- The easiest and cheapest way to send money
- For many years, the banking system has become very expensive and complicated to send cash from one point to another. However, ICON allows you to send cash on a peer2peer basis without involving third parties. This means that you can make payment instantly and for a very small fee.
- The ideal network that allows users to own and use the network
- Ever thought of owning the largest payment network in the globe? This is impossible with banks because they already have their owners. But it has now been made possible by advanced crypto networks such as ICON. When you join the ICON network, you become part of the owner. You do not simply use the network to send cash; rather, you become an important part of generating consensus.
- The ICON network helps users spread in the network make investment
- For many people rushing to join the ICON network, the main target is the investment. The network allows users to buy the native tokens and see their value grow in the coming years. There is great anticipation that ICON has a bigger potential than that of the biggest cryptocurrency, Bitcoin.
- The network is an easy way to launch and grow businesses rapidly
- The ICON operational model is similar to that of the Ethereum network. However, the concept is more advanced to help enterprises easily launch their smart contracts and individual blockchains. This means that you do not have to start a business from scratch because a lot of work has already been done. Simply focus on getting the best products and use the network to launch smart contracts to catapult to success.
- The network provides the ideal network for raising capital
- The ICON network has positioned itself through the advanced ecosystem as a better place to run ICOs (Initial Coin Offering). This means that startups are now assured of raising a lot of cash for their operations whether planning to run individual projects or advancing their main networks.
What Are the Risks of ICON?
Every person entering the blockchain networks harbors some fears. From the unclear legal status to infantry status of ICON, it is important to gauge every component to make the right move. Here are the main risks associated with ICON.
- The cryptocurrency is very young
- Though ICON project is very ambitious, it is very young. This means that most of the features and components in its system are still being tested. It will take a lot of years before everything have been tested and proven to work as anticipated.
- The project scope is very wide
- While the desire to provide a platform that can accommodate all the cryptocurrencies and institutions is noble, achieving it is indeed a talk order. The approach taken by ICON could ultimately become the main limiting factor. It could have been better if the ICON team drew the target scope but started with a smaller focus before rolling to the entire ecosystem.
- The ICON network operates as a fully anonymous network
- Like other cryptocurrencies, ICON is a fully anonymous cryptocurrency network. This means that every transaction is fully encrypted and irreversible. If you make a mistake of sending funds to the wrong network, the loss is permanent. The transaction cannot be reversed.
- The looming regulations
- Between 2009 and early 2018, no jurisdiction had passed laws guiding cryptocurrencies development and application. But the feeling that the cryptos are taking over the powers of governments have made most administrations to target passing harsh regulations. If this happens, the chances are that ICON and other cryptocurrencies will suffer a lot.
- The danger of new and more advanced networks being passed in the future
- Just like ICON has come with better technology for hyperconnectivity, it is likely to suffer the same fate in future. Newer and more advanced cryptocurrencies are likely to join the market and outdo ICON. This could risk making ICON lose its appeal as people opt for the newer and more appealing crypto.
- The danger of high volatility
- Though cryptocurrencies are considered great options for investment, they are highly volatile. Because their prices are driven by demand and supply, any issue that directly impacts them is likely to cause value fluctuations. Just like the prices of Bitcoin was pushed down by the ban of ICOs in China and those of Ethereum shot down after the DAO attack, investors should also anticipate similar volatility with ICON.
- The risk of getting involved in illegal activities.
- Many criminals have found refuge in cryptocurrencies. Because the crypto networks allow in every person who is interested, it is very easy for people to trade fake products. If you identify an item and make payment for counterfeits, you will be contributing to it indirectly. This is one danger that ICON cannot run away from because the transactions are completely anonymous.
What Happens if ICON Gets Lost?
When you get ICX, it is important to appreciate that the risk of loss is never far. Many are the times when people report cases of their ICX getting lost. But have you ever thought what happens when ICX gets lost? To understand what happens, you need to follow the methods through which the altcoins can get lost.
One thing that you should appreciate is that ICX (the native tokens in the ICON network) cannot leave the network. Therefore, a loss means that you simply lost personal access or identity to the coins. But the coins are still in the network.
If you lost the ICX through hacking or sending to the wrong address, it means that they are still in the network. However, they have simply changed hands. The bad thing about it is that you cannot tell who took the coins and the transactions are not reversible.
For those who lose their ICX through loss of private keys or loss of the ICON wallets, it means that the native coins are still in the network but dormant. You need to get the right wallet or private keys to get the ICX active and ready for trading.
Between 2009 and first quarter of 2018, the cryptocurrency world has operated without a clear framework to guide the design or application of cryptos. Many governments felt that the cryptocurrencies were becoming too much by taking control of the critical financial sector that helps to control inflation and economic growth.
The ICO cryptocurrency provides a peer2peer framework for sending funds and running projects. This means that no centralized authorities such as banks are required. But this model has created a complex situation that many governments are finding very difficult to accommodate and accept. Here is a closer look at the complex scenario created by ICON and other cryptocurrencies.
- The peer2peer cryptocurrency model used by the ICON bypasses the standard organizations such as banks which imply that they do not make any profit. If this trend extends, banks risk closing their operations.
- Because the ICON network and other blockchain networks are anonymous and decentralized, the involved individuals do not pay taxes. They are completely hidden, and the government cannot reach them because all transactions are encrypted. Governments risk running out of cash as more people rush to the tax-free crypto networks.
- The design of cryptocurrencies creates a new form of accepted cashless society. The crypto tokens that are used in the blockchain networks such as ICON makes it very difficult for governments to control inflation.
Whether it is at the government or organization level, the administrations feel that things are fast getting out of hand. What would happen if people stop focusing on the standard shares, trading in forex, or fixed assets because they are joining crypto networks? It is because of this that every government out there is working extra hard to craft crypto related laws.
Why regulating cryptocurrencies is more complex than many administrations anticipate
People who are new to the crypto world are fast to question the slow pace that governments have taken to regulate cryptocurrencies such as ICON. Well, things are more complex that investors can anticipate when it comes to regulating decentralized cryptocurrencies.
It has emerged that most administrations have been unable to pass legislation because of the complexity involved. In many cases, the administrations are forced to play catch-up because the technology is advancing faster than they can conceptualize. For example, many administrations only come to learn about the blockchain technologies, decentralized applications, and the mutating algorithms after they are launched.
For most administrations, the blockchain technology has brought the solution to the complex problem of Big Data. Take an example of the United States. The health, education, immigration, agriculture, infrastructure, and other sectors have been generating a lot of data over the years. Now, storing, sorting, and making meaning of this info is a big problem. Since ICON and other cryptocurrencies have brought the right solution to these issues, it is very difficult for administrations to block such technology.
The blockchain technology is advancing at a very fast rate. Even before a new blockchain finishes testing all the features, several others will have already joined the market. With every new crypto network coming with a different form of technology, it is very difficult to draw legislation covering all of them. If you regulate the technology in existence, others are likely to emerge in the near future.
Unlike banks and businesses that are owned by individual entities or persons, the cryptocurrency networks do not have specific owners. This implies that there is no specific person to target with the legislations. The ICON network is owned by all the users who are spread across the globe. Therefore, regulating it in one country will not bar other users from other nations to continue growing the cryptocurrency.
The future of cryptocurrencies’ regulations
While the operations of cryptocurrencies are unregulated, this situation cannot last for long. Many administrations are working hard to draw relevant laws that will guide application and taxing of crypto-related activities. Therefore, investors in the ICON network should join the cryptocurrency world with a lot of caution because the laws are coming.
Is ICON Legal?
Yes, ICON is legal. The status of ICON and other cryptocurrencies is legal in most countries. Even though many countries voice their discontent with cryptocurrencies, they only issue direct orders or guidelines on how users should approach their use as opposed to installing legal frameworks. The main target is ensuring that traders who are making a lot of profits trading ICX and other tokens make appropriate tax remittance. Here is the status of the ICON legal status by county.
1) The United States
- The United States has been quiet about cryptocurrencies since they debuted in 2009. The federal authorities are not in a hurry to regulate ICON or other cryptocurrencies because they want to tap all associated benefits. The only reference that the federal administration has made to cryptocurrencies is through the Commodities Futures Trading Commission (CFTC) that directed cryptocurrencies such as ICON be treated as commodities. The move was targeted at directing traders to make the right tax deductions and paying to the IRS department as opposed to guiding the law.
- The Chinese administration has not had good words about cryptocurrencies operation in its jurisdiction. The government, as well as its affiliated special administrative regions, has been categorical that any crypto activity that compromises the administration ability to collect taxes would be rejected. In 2007, the Chinese authorities banned ICOs in the country. Taiwan also banned the use of cryptocurrency ATMs. However, ICON remains legal in China because there is no legal framework.
- While many countries are working towards blocking or scaring away blockchain networks, the Swiss administration is welcoming them. This is one jurisdiction where the government has indicated it wants to be a crypto administration. In January of 2018, Johann Schneider-Amman, the Swiss economic minister explained that they are looking at all avenues to ensure that the ICO markets prosper. It is because of this notion that an ICO working group was formed to fast-track ICO guidelines so that more startups can come and use the country.
- ICON is legal in Canada. The Canadian Financial Consumer Agency is categorical that ICON and other cryptocurrencies are not legal tenders. However, it has indicated that there is no law that prohibits use and trading ICX for assets or even fiat. Like the United States, the Canadian government has pointed that cryptocurrencies be considered commodities. However, the administration at the Canadian securities market has indicated it is exploring possibilities of regulating ICON and other cryptos through the securities laws.
5) The European Union
- In the EU, cryptocurrencies such as ICON are legal. The giant union has released mixed reactions towards cryptocurrencies. The European Central Bank has indicated that the cryptocurrencies are disruptive and cautioned its users to take a lot of precaution. However, the EU government has indicated that there are many benefits that come with cryptocurrency technologies. The legislators in the EU Parliament have pointed that they are studying the cryptos before passing laws to regulate them.
ICON and Taxes
The notion of ICON and taxes is as complex as regulations. For many people, thoughts of joining a cryptocurrency network are accompanied with the view that they can live without paying taxes. This argument is informed by the view that ICON and most cryptocurrencies are anonymous, do not use centralized organizations, and every detail is encrypted.
However, tax experts in the cryptocurrency niche hold a different opinion on taxes. They are of the idea that the argument that users will forever remain anonymous is misconstrued. Though the technology available today allows you to operate anonymously, there is a risk that it could be rendered obsolete in the coming days. If this happens, you could get exposed and lawsuits instituted against you.
A closer look at individual countries reveals their unwavering drive to have every person taxes. The effort by some people in crypto networks not to pay taxes has been the cause of anger for some administrations such as China to ban crypto related activities. The Chinese administration has pointed that it will stop at nothing in ensuring that technologies including crypto blockchains that compromise its ability to collect taxes are blocked from its jurisdictions.
In Israel, the government has indicated that revenue arising from trading in cryptocurrencies is taxable. This is the same story in other countries such as the UK, the US, Russia, and Australia. Therefore, you need to get it right on ICON and taxes from the beginning.
Tips to help you get it right on ICON and taxes
Tax experts in the cryptocurrency industry have advised traders to ensure they pay taxes on time to avoid getting into conflict with the law. Here are some useful tips to apply.
- Consider revenue from ICON trading as taxable income.
- Capture useful details about the transactions and store them well for clarification when the need arises.
- Ensure to note with precision the corresponding ICEX value in fiat at the time of trading.
- Always seek expert assistance especially for businesses using ICON network intensively.
Does ICON Have a Consumer Protection?
The design of open source cryptocurrencies targets decentralizing ownership and handing it to users. This means that there is no single authority that is responsible for what happens on the ICON network. There is no consumer protection in ICON network. If you send cash to the wrong address and the transaction gets confirmed, it cannot be reversed.
The closest that ICON network went to providing consumer protection is the ICON foundation. However, even the ICON foundation is a separate body that mainly works on enhancing the smooth operation of the system as opposed to handling individual complaints. It works with the development team to ensure that the technology runs well and all the features are functional.
Once you join the ICON network, things can get worse from the fact that cryptocurrencies are not regulated. This means that even if something happens and you lose ICX, reporting to a court of law is not an option. To operate safely within the network, you need to take absolute control of all the operations. Here is what to do to remain secure.
- Always use the same computer to access your ICON network and wallet.
- Make sure to keep the computer and wallet used for ICON operations updated.
- Do not share the private keys with anyone.
- Only trade the ICX in exchanges that are sure and reliable.
Illegal Activities with ICON
The architecture of cryptocurrencies such as ICON that allows users to operate in total privacy is very attractive to criminals. From those advancing ponzi schemes to drug dealers, there is no doubt that crypto networks are very attractive. But ICON has been designed to ensure that every transaction is verified at different stages to weed out illegal activities. By the first quarter of 2018, no illegal activity had been reported in the ICON network.
Saying that no illegal activity was reported in the network does not mean that attackers will not make attempts. Many criminals are always working on new technology and schemes to defraud clients. Therefore, be on the lookout and try to keep your ICX offline all the time.
Is ICON Secure?
One of the most important things that DAYLI Financial Group and the ICON development team focus on so much at all levels is the security. As a blockchain of blockchains, the developer team knew that the work of securing extended system was not easy. Therefore, they employed the following components to keep users, partners, cryptos in the ecosystem and native ICX coins safe.
- They employed the Loop Fault Tolerance consensus algorithm that promotes faster achievement of consensus while reducing the need for a fork. This is achieved through reduction of the number of nodes involved in voting by grouping the delegates for faster consensus.
- The ICON system uses SCORE (Smart Contract on Reliable Environment) that operates directly in the node's environment without the need for a separate virtual machine. This means that in the event of an attack, only the targeted node will be affected and the threat cannot jump onto the entire network.
- An enthusiastic and tech-savvy team manages the ICON system. The members are very active in identifying threats and addressing them amply to avoid attacks.
Is ICON Anonymous?
One of the main attractions of the ICON network is its advanced privacy. The ICON uses the ICON protocol that takes every transaction through a number of stages and renders it completely untraceable. Besides, all the details of every transaction are fully encrypted to make it difficult to unmask the users.
Notably, users in the network should appreciate that privacy in the ICON network could change depending on the community or blockchain using the ICON ecosystem. Remember that ICON only facilitates the interconnection but does not dictate how individual blockchains are operated. Therefore, if you are on a less anonymous network, it will remain that way when working on its system.
Has ICON Ever Been Hacked?
The ICON network is very young. With its ICO (initial coin offering) held in September 2017 indicating the onset of its operations, the crypto was the youngest in the first quarter of 2018. Despite this short period of existence, no successful hacking attempt has been reported. This is a great score for the network because other equally young cryptos such as Bitcoin Gold were hacked only a few days after launching.
How Can I Restore ICON?
When you lose ICON, there are several methods that you can use to restore them. However, this depends on what caused the loss. If the ICON was lost through hacking or sending to the wrong address, no method can be used to restore them. They have simply changed hands and now have a new owner.
If you lost ICON through loss of the wallet, you could restore them by installing the backup wallet. You can also get another compatible wallet and use the private keys and private seed phrase to reconcile with the network.
For those who lose their ICON through loss of the private keys, restoration can only be done by recovering the keys using the private keys seed phrase. This is the code that all the ICON wallets give users when they first use them.
The secret to restoring ICON after a loss is being prepared. In fact, you need to be prepared right from the moment of joining the ICON network. Make sure to keep a backup wallet and secure the private keys seed phrase because you can never know when the loss will happen.
Why Do People Trust ICON?
Though ICON was one of the youngest cryptocurrency by the first quarter of 2018, the thrill and trust it generated have made a lot of investors to take note. Here are the main reasons why more people have a lot of trust in ICON.
- The cryptocurrency is unique and is acting as a guide to where the blockchain technology is headed. Though Ethereum introduced the idea of smart contracts, ICON has taken it further by providing a complete ecosystem. The hyperconnectivity is making people see huge potential that will grow their investment in the ICON system.
- While many cryptocurrencies out there have been working on enhancing individual growth and success, ICON is targeting synergies. They have announced a partnership with Ripple and Coinone. These partnerships will keep the cryptocurrency growing and increase the chances of becoming a major payment network.
- The ICON cryptocurrency is crafted and maintained by a very advanced tech team. The fact that the DAYLI Investment Group's work in AI (Artificial Intelligence) and blockchain technologies are a demonstration that they are ready to steer the network to the top. They can secure and keep riding faster than other cryptos.
- Since ICON was launched, it has never been hacked. If you look closely at other cryptocurrencies such as Bitcoin Gold, they suffered major security lapses and attacks days after launch. This has not been the case with ICON. What this implies is that the crypto group is committed to ensuring that ICON is one of the most secure networks out there.
- The cryptocurrency has its roots in South Korea. South Koreans have a lot of trust in cryptocurrencies especially those that they consider their own. They see cryptocurrencies to be investment opportunities as opposed to simply being means of payment. With about 30% of the global cryptocurrency trading taking place in South Korea, ICON is winning a lot of trust because of the anticipated exponential growth.
History of ICON
The history of ICON can be traced back to the second and third quarters of 2017 when DAYLI team decided to create an open source platform that could accommodate other blockchains and communities. DAYLI, a fintech organization known for its focus on AI (artificial intelligence) sought assistance from a bank to run the initial protocol and test it by the third quarter. However, the details of the early partnership and the specific bank remain scanty.
At the beginning of the fourth quarter, the ICON development team announced that it had created 400 million native ICO tokens that would go by the name ICX. On September 20th 2017, the ICO team held its pre-sale ICO that was completed in record six hours because of high demand. ICX started trading on the exchanges in October. Note that only 50% of the total tokens were available for sale during the ICO. The remaining 16% went to the ICO reserve, 14% went to the ICON foundation, 10% went to advisors and early contributors, and 10% was reserved for the strategic partners.
In the first quarter of 2018, the value of ICON dropped steadily from $9 to less than $5 by the close of the January. The ICO team and the entire community are, however, optimistic that the remaining part of 2018 and subsequent years will see the value of ICON growing rapidly.
Who Created ICON?
The ICO project was created by DAYLI Financial Group. DAYLI is a South Korean and Japanese based financial company that mainly focuses on artificial intelligence, blockchain technology, and smart contracts. The DAYLI group indicates that it wanted to ensure that everyone could identify with and become part of the blockchain technology.
To make the ICON project successful especially at the early development stages, DAYLI brought in other parties including the Loop Inc. The Loop is a South Korean based company that focuses on blockchain engines. Other parties included Don Tapscott, Jason Best, Ismail Malik, and Cho Yiseul.
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