What Is ICON (ICX)? Diving into its Cross-Chain Framework

The rise of crypto adoption ultimately means building more decentralized applications (dApps). The ability for developers and users to operate seamlessly across multiple blockchains is now a necessity.

Different blockchains offer unique features and capabilities, but they often exist in isolation, unable to communicate with each other. Cross-chain development is essential to breaking down these barriers, enabling dApps to interact with various blockchain ecosystems, share data, and transfer assets securely and efficiently.

Today, several solutions are working to make cross-chain communication a reality. One such solution is ICON.

ICON is like the bridge builder between these isolated blockchains, providing the infrastructure that makes it easier for developers to create applications that can interact with multiple blockchains seamlessly. 

But what is ICON exactly, how does its cross-chain framework work, and where does ICX coin come in?

ICON: What is it?

ICON is a Delegated Proof of Stake (DPoS) Layer 1 blockchain. This DPoS mechanism allows ICX token holders to stake their tokens and vote for representatives, known as validators, who are responsible for validating transactions and securing the network. At the time of writing, ICON has 80 active validators. DPoS is efficient and scalable while reducing the number of participants involved in the consensus process and maintaining its security standard. 

Central to ICON’s ability to connect different blockchains is its cross-chain framework. This framework allows efficient communication and interaction between various blockchain ecosystems, breaking down the barriers that typically isolate them. 

At the heart of this framework is ICON’s General Message Passing (xCall) interface, which standardizes and simplifies the process of sending data across different blockchains. We will take a closer look at this interface in the sections below.

ICON’s Cross-Chain Framework

ICON’s cross-chain framework is the engine room of ICON, packed with four major components that make cross-chain communication possible. 

Let’s break it down:

ICON Blockchain

The ICON blockchain is the foundational layer of this framework. It’s a layer 1 (L1) blockchain, which means it’s the base layer upon which everything else lies.

ICON’s blockchain is integrated with both IBC (Inter-Blockchain Communication) and BTP (Blockchain Transmission Protocol). These protocols are like the translators between different blockchains, enabling them to exchange data and assets without misunderstandings.

One of the standout features of ICON is its high-performance smart contract execution environment powered by the Java Virtual Machine (JVM). This allows developers to create dApps on-chain that operate with minimal latency, making them fast and responsive. This execution environment is ideal for building cross-chain dApps, where speed and performance are crucial.

These protocols enable ICON to act as a hub for cross-chain communication, allowing different blockchains to interact and exchange data seamlessly. 

ICON General Message Passing (GMP)

The ICON General Message Passing (GMP) is a standardized messaging interface that simplifies cross-chain communication by allowing applications to send data across multiple blockchains through a single, unified interface. 

It shifts away the technical complexities of various bridging protocols, enabling developers to focus on building cross-chain dApps with ease and efficiency. 

Developers can use GMP to send messages between different blockchains without needing to understand all the technical details of how each blockchain works. 

Multi-Protocol Verification

Security is a big deal when it comes to cross-chain communication. 

Just like how you wouldn’t trust a bridge without knowing it’s safe, you wouldn’t trust a cross-chain transaction without knowing it’s secure. ICON addresses this through Multi-Protocol Verification. 

This system adds an extra layer of security by allowing messages to be verified across multiple protocols. It’s like having multiple checkpoints on a bridge before allowing traffic to pass through. This way, even if one protocol is compromised, the transaction remains secure.

Enshrined Exchange (Balanced)

The ICON blockchain has enshrined the popular cross-chain DeFi platform Balanced as early as January 2024. This enshrinement signifies three major benefits to ICX holders, traders, and developers:

• Half of the ICON network emissions flow directly into Balanced liquidity pools, where they are held in the form of a growing list of trading pairs with apex tokens such as ETH, BNB, AVAX, and SUI.
• Part of Balanced’s trading fees are directly used to buy back and burn the ICX token. This happens continuously as trades take place on the platform
• dApps looking to go cross-chain with their tokens can tap into the ICON and Balanced infrastructure, allowing them to focus on building cross-chain dApps with ease and efficiency. 

ICX Token: What is it and How it Works?

The native token of the ICON network is ICX, which plays a critical role in the ecosystem. ICX is the gas token for transactions on the ICON blockchain: it’s how you pay transaction fees. 

ICX also serves as the fee token for cross-chain transactions conducted through ICON’s GMP, used in various trading applications.

A unique aspect of ICX is its burning mechanism. A portion of the fees collected from transactions or cross-chain activities is used to buy back and burn ICX tokens. This reduces the total supply of ICX over time, increasing its scarcity and potential value. 

Even when ICON’s General Message Passing (GMP) interface is used from external application hubs like Ethereum, or through adapted protocols such as Wormhole, fees are still collected in the native coin of those networks and used to buy back and burn ICX. 

Several bridging protocols enable ICON to connect with other blockchains, such as Ethereum or Sui, facilitating smooth cross-chain transfers. These collected fees are then used to buy back and burn ICX. This ensures the value of the ICX token is continually supported by cross-chain activity across the broader blockchain ecosystem. 

ICX also serves several important functions within the ICON network:

Staking 

ICX holders can stake their tokens to participate in the network’s governance and earn rewards.

Governance

Staked ICX tokens give holders the right to vote on important decisions that affect the network, like protocol upgrades or new feature implementations.

Burning Mechanism 

A portion of the fees collected within the ICON network is used to buy back and burn ICX tokens, reducing the total supply and potentially increasing the value of remaining tokens over time.

In short, ICX is not just a currency; it’s a tool for governance, security, and value creation within the ICON ecosystem.

How to Access and Use ICON (ICX) Securely

You can now manage your ICON directly in Ledger Live! Just install the ICON app to begin. For more information on how to install the ICON app and manage your ICX, check out the help center docs here.

Final Thoughts on ICON (ICX)

ICON is like a bridge builder in a world of isolated blockchain networks. 

It helps blockchain ecosystems interact with each other, and its cross-chain framework makes it easier for developers to create applications that work across these blockchains. Moreover, its native token ICX helps secure and govern the network. 

ICON is a glimpse into the up-and-coming interoperable future of crypto. Making dApps easier to build across multiple chains, ICON is paving the way for an interconnected blockchain space. With Ledger, you can access the ICON ecosystem with the peace of mind that comes with security and self-custody.