ICON versus TenX: What You Should Know
There are so many cryptocurrencies out there. As the flow of ICOs continues, more tokens are added almost daily. It may be some consolation that more the 80% of these tokens use the Ethereum platform and that means their value is connected to the mothership. It may also help to remember that there are plenty of crypto exchanges that will unload your coin once the ICO is complete.
That’s fine, but this takes time not to mention the fees that get tacked on along the way. And if there has been a proliferation of currencies, now about every Fortune 500 company wants their own blockchain. Instead of putting all of our efforts on figuring out who has the smartest contracts or which is the best crypto, maybe we should look for someone to connect all these dots. My guess is this notion will be a big feature of Gen IV crypto technology.
Here Are Two Prospects
Of the most successful ICOs in 2017, two are really eye catching for their vision of connecting cryptocurrencies and networks.
TenX claims they will make all cryptocurrencies spendable through a debit card ranked. That vision made them $64 million during their token sale, enough for the tenth spot on the list of largest intakes.
The ICON project will be building one of the largest decentralized networks in the world. The total raised of $43 million was good enough for the #13 ranking of top 2017 ICOs. Before going deeper, let’s first take a look at TenX.
TenX Could Be a 10
TenX has an audacious plan to connect digital currencies and in the process disrupt one of the biggest financial monopolies in existence. They are out to create a massive payment channel dubbed COMIT which stands for Cryptographically-secure Off-chain Multi-asset Instant Transmission network. How does their white paper describe COMIT? It looks just like the Internet.
In simple terms, TenX is out to get a banking license, then use their own debit card running on the COMIT network to challenge the MasterCard, Visa, American Express monopoly. The beauty of TenX is the ability to use any coin or token to buy goods and services with one card.
Even if a merchant doesn’t happen to accept crypto, no problem, TenX converts the crypto to the fiat currency.
This is the future of cryptocurrencies. As bitcoin leads the way with some 10,000 mostly online merchants acceptance of other cryptos will follow. However, the amount of time involved in winning the game will be considerable. We are talking about a startup company attempting to capitalize on mass adoption of crypto as a medium of exchange. So far fewer than 1% of all transactions fit that category.
Around the year 2000, online merchants accounted for 1% of all retail sales. Some 18 years later, it amounts to just under 10%.
ICON: Connecting Networks
For those who really enjoy digging into the technical detail, here is how their whitepaper describes the project.
With ICON, numbers of blockchains are connected around Nexus via Portal. Nexus is a loopchainbased blockchain. Nexus is a Multi-Channel blockchain comprised of Light Client of respective blockchains.
Tokens called ICX (ICON Exchange) are embedded in Nexus and the interconnected blockchains can use ICX to transfer values. As a blockchain itself, Nexus can be connected to another Nexus, allowing different blockchains with different governance structures to execute transactions and exchange values.
For us simpler folks, think of the earliest days of the Internet. Over 30 years ago, the Internet consisted of a bazillion independent networks throughout the world. Then somebody came up with TCP/IP and presto, the modern Internet was born.
Use cases for ICX go beyond connecting currencies – they connect blockchains and that means doing something akin to TCP/IP. So we are talking about things like connecting separate health systems and much more.
Just like TenX, the question for ICON is how long their plan will take and will $43 million be enough to deliver the bacon. However, for those investors looking for a Gen IV play, ICON is a candidate.
Like about every other currency, ICX came down hard from its $9.95 price on January 30 to a $1.89 low earlier this month. Since then it has bounced back and is hovering around $4.30 at the time of this writing. Raising $43 million may not be enough to get ICON to the promised land but it shows that a lot of serious investors did their research and bought the promise.
Featured image courtesy of Shutterstock.