ICON: New STO Standards For Assets And Securities, Monthly AMA Highlights And Desktop ICX Wallet
Biweekly update 6th March — 20th March
This is not financial advice.
During the last two weeks ICON Foundation showed average level of activity in media landscape. The main keynote of ICON’s biweekly update is the release of its own token specifications for 3rd-party market players interested in developing and commercializing blockchain-based assets and securities. IRC16, a newly added token standard based on ICON’s public blockchain network, is to simplify the process of creating blockchain-based securities and tokenized assets. To continue, the ICON Foundation announced the release of Svalinn, a desktop ICX wallet available for both Windows and macOS, that works both on offline and online devices. Finally, ICON has announced its sponsorship of Deblock, Inc. which is specialized in technology-driven consultation and fundraising for Japanese companies planning to leverage the power of blockchain technology.
ICONation announced the release of its latest development, Svalinn. Svalinn is a desktop ICX wallet available for both Windows and macOS, that works both on offline and online devices.
In order to send a transaction, you need to sign it beforehand using your private key so you can prove you own the funds deposited on the wallet associated with your private key. Once the transaction is signed, it is ready to be sent to the ICON nodes so they can validate and process it. Even if your online computer gets infected by malware, there is cryptographically no way to recover a private key from a signed transaction, so your private key remains safe.
Based on Electron and the official ICON-SDK-JS, Svalinn is capable of transaction signing on an offline device. Svalinn saves the signed transaction to a file and transfers it to an online device before sending it. This enables your private key to always stay on an offline device without exposure to the Internet when making transactions.
The Svalinn beta wallet is now available for download at: https://github.com/ICONation/svalinn/releases/latest
ICON’s new token standard, IRC16, aims to simplify the process of creating blockchain-based securities and tokenized assets.
IRC16, a newly added token standard based on ICON’s public blockchain network, is designed to allow transparent issuance of tokenized assets and securities. Also, it supports simple tokenization of various physical assets through a modular architecture for built-in compliance with legal regulations related to asset ownership and transactions. Tokenization of real assets, which divides, proves ownership, and allows for the sale of physical assets into smaller ‘token’ units, is expected to increase the liquidity of high-value assets and expand the size of existing investor pools over the long term.
Additionally, smart contracts act as intermediaries guaranteeing the settlement of asset trading between sellers and buyers, thereby simplifying the transaction process and minimizing brokerage fees. The process of reviewing and signing contracts in the existing offline environment is instead handled online through smart contracts.
ICON’s IRC16 features four functions:
1.Check for Token Transfer
Check for Token Transfer’ function provides an interface that verifies whether token senders and recipients passed know-your-customer (KYC) and anti-money laundering (AML) procedures, and limits the number of investors that can initiate and receive token transfers. This feature also provides the reason for failure if the token transfer fails.
2. Token Control by Operator
‘Token Control by Operator’ supports compliance with regulations regarding fraud or the loss of personal encryption (private) keys.
3. Document Management
‘Document Management’ stores and manages relevant legal documents to ensure that the rights and obligations of token issuers and investors are observed.
‘Partition’ allows for partially fungible tokens, which allow issuers to attach metadata, including lock-up periods, to be built into a certain portion of the tokens.
The IRC16 source code can be found on its Github page.
When will we see the first community (private blockchain) connect to ICON mainnet and represented with a c-rep?
We expect this to take place in Q4, after the election of P-Reps.
What is happening with all the dapps announced in 2018? A lot of them are still on ETH like Bluewhale, logistics X, Cosmo chain etc.. Why are they loose when it come to swapping to ICON?
As you know, the market has impacted a number of projects across the space (eg from a funding standpoint, securing strong development talent etc). Therefore, each Dapp is progressing on their own respective timelines (ie as they see fit). We expect migration to come. Hopefully sooner rather than later. But ultimately this is up to the DApp projects themselves.
Since all those ICOs where raised with ETH, will they be mandated to swap their ETH reserve to ICX? Or will they issue their token and only pay for the contract creation fees (~20icx)?
Regarding raised funds in ETH, there is no requirement to swap to ICX. They will swap their respective ERC-20 tokens to IRC-2, similar to AC3.
Can an existing Dapp deployed as IRC2 contract be converted into the recently released IRC16 standard (STO) ? Or is there no migration path between the two?
A migration path is possible, but in our view the cleanest way to do it will be a traditional token swap.
What’s with Cosmochain are they or are they not moving to icx?
In the case of Cosmochain, it’s unclear when they will swap their ERC-20 to IRC-2. The token is currently traded on exchanges that only support ERC-20s (not IRC-2). However, as that changes over time, we will revisit the swap. That said, they are expected to upload data onto the ICON Network and generate transactions for the network.
Smilegate Stove and the gaming industry. I see this as a huge market and want to know what’s going on with Smilegate and anything else ICON could tell us about their work in this market? Is this something that ICON is looking at outside of Smilegate, perhaps this is something an ICX Station has a priority towards?
Yes, the gaming sector is a high priority at ICX Station. The guys touched on this in a recent ICONist article.
*Smilegate Stove — Korea’s leading game company, today revealed its new mobile service platform, STOVE, which will propel Smilegate and its partners to achieve new growth for the global mobile service market.
What focus is on Iconest at currently?
Currently, most of the development team is focused on the public chain. We plan to release more details on the relationships as we launch specific applications/use cases. Privacy is a focus and we are always considering privacy features that could be implemented at a later date.
How is ICON currently positioned in terms of interoperability? When is a realistic timeframe being aimed for where we can see an alpha version of two chains connected through Nexus?
From 2Q through 4Q we plan to make significant progress. The progression will be connecting private loopchains, then private loopchains to the ICON public chain, then connecting ICON’s public chain to other public chains (with C-Rep features and BTP).
How well is ICON in terms of economics? What other sources of income does ICONLOOP have?
ICON Foundation is well positioned. ICONLOOP is a private company that doesn’t disclose revenue figures.
Can you advise if ICON has any additional contractual obligations to distribute coins allocated to any of the groups listed above and if so, what that schedule may be?
Contractually, there’s 10% of tokens that are distributed to team members, early contributors and advisors. Generally speaking, these tokens vest over 2 years in 6 month increments.
As far as community groups/strategic partners, those are typically contracted on a deal by deal basis. Those vesting schedules can be flexible (and range from 6 months — to several years) and are mostly based on extent of the relationship, results and the size of deal etc.
The foundation can also utilize funds for operational purposes if needed. These ‘costs’ are harder to predict.
Which private chains do we expect to see connecting through the public chain and what is their use case?
We expect to see a number of use cases in government, financial institutions and insurance. I can’t point to specific entities given confidentiality but as we’ve stated before, we view every private network as a potential use case for the public ICON network and consider public chain integration in every private blockchain implementation of ICONLOOP.
Can ICON foundation prevent centralized exchanges (holding ICX for their customers) from abusing/misusing the votes in the upcoming elections in September?
1) It’s unclear if centralized exchanges would vote (although there is precedent (EOS for example).
2) If they do, there are some potential ways to mitigate it. One is by increasing the staking lock-up period whereby exchanges wouldn’t be able to stake the entire portion (given liquidity restrictions). We are exploring other options as well.
Will you try to build a stronger partnership with SAMSUNG???
We will always look for ways to build stronger relationships with top companies
‘AWS Partner Summit Seoul 2019’ will be held at the Lotte Hotel Seoul on March 20th. The event is an annual conference for Korean partners registered in the Amazon Web Services (AWS) Partner Networks (APN) and IT companies interested in joining it. It will be a great opportunity for information sharing and networking between AWS and its partners for successful business collaboration.
‘Blockchain Innovations in Public Services’ took place at the Korea Financial Investment Association Center (KOFIA) in Seoul on March 14th.
As government agencies increasingly introduce blockchain into the real-world, presenters from public institutions, including Korea Internet & Security Agency (KISA), the Korea Customs Service, the Korea Mint, Security Printing & ID Card Operating Corporation (KOMSCO), the Korea Ministry of Agriculture, Food and Rural Affairs (MAFRA), shared useful information on planning blockchain-based public services and collaboration opportunities.
- ICONLOOP Participates in the ‘2019 World Smart Sustainable Cities Organization (WeGO) Business Information Session’
ICONLOOP, as a joint-business partner of WeGO, attended the ‘2019 World Smart Sustainable Cities Organization (WeGO) Business Information Session’ held at the Seoul City Hall on March 8th. This event, co-hosted by the World Smart Sustainable Cities Organization (WeGO) and the Seoul Metropolitan Government, was organized to discuss ways to cooperate with cities and corporate members of WeGO.
ICON-HackerOne Bounty Program allows anyone interested in the ICON Project to participate in the bug bounty program. The ICON Foundation has been running the private bounty program with HackerOne, a global cybersecurity company with outstanding bug bounty practices across diverse industries, since November 2018. By opening this to the public, the ICON Foundation will accelerate the stability and security of the ICON Network.
The ICON Foundation is launching a promotional incentive program for all who participate in the public bounty program starting in March. If you report 2 valid issues, 2x of the original bounty will be provided as promotional incentives. For the next 3 valid reports after 2x incentives, you can also receive 1.5x of the original bounty. For more information on participation in the public bounty program and the incentive promotion, please visit the ICON page within the HackerOne website.
* This promotional incentive program is limited to participation in the public program starting March 2019.
- The ‘DEX (Decentralized Exchange)’ Development Team has optimized ICON DEX structure by analyzing strengths and weaknesses of the four existing DEX services; IDEX, 0x, Kyber Network, and Bancor. The team has also completed developing smart contracts, and started to develop the user interface and front-end.
- Developing ‘STO (Security Token)’ smart contract has been complete. Besides, we are also working to support the Blockchain Regulatory Sandbox to be realized.
- After stabilization, Development of Fee 2.0, the new fee system which allows DApp providers to pay transaction fees instead of users, will be completed and ready for launch. Additionally, DApp providers can pay transaction fees with Virtual Step* generated through staking.
(*Virtual step is a system to mitigate the burden of transaction fees. SCORE operator can receive and utilize Virtual Step by agreeing to deposit a certain amount of ICX for a given period of time.)
- The ‘IISS (ICON Incentives Scoring System)’ Development Team currently aims to start stabilizing the IISS functionality in April.
- The ‘BTP(Blockchain Transfer Protocol)’ Development Team is developing a DevNet that enables developers to experience Interchain environment, which connects different blockchain networks. The team is also working on connecting different ICON TestNets through BTP and aiming to finish development of this TestNet by April.
- The ‘DID (Decentralized Identifier)’ Development Team is establishing smart contracts based on a standard protocol and plans to launch a practical service with a DApp partner in May.
- The ICON Team will turn the private HackerOne bounty program over to the public to enhance ICON Network security in early March. More white-hat hackers and developers are welcomed to participate in the HackerOne bounty program. We are waiting for your contribution to enhance the security of the ICON Network. Further notice about participation will be released.
2Q — 4Q: private loopchains, private loopchains to the ICON public chain, connecting ICON’s public chain to other public chains (with C-Rep features and BTP).
Q4: private blockchain connection to ICON mainnet and represented with a c-rep after the election of P-Reps.
Partnerships and team members
ICON has announced its sponsorship of Deblock, Inc. (Representative Director John Minkoo Kim, Deblock Japan) in Japan on March 7th. Deblock Japan will operate a Tokyo Launchpad of ICX Station, the accelerator program sponsored by ICON, with partners both inside and outside of Japan.
Deblock Japan, established in June 2018, is specialized in technology-driven consultation and fundraising for Japanese companies planning to leverage the power of blockchain technology.
ICON is planning to find and foster promising DApp projects in Japan through this sponsorship. Both ICON and Deblock Japan will provide various types of support to selected projects, with a focus on 5 industries in which blockchain could have a significant impact: Fintech, Sharing Economy, Gaming and Entertainment, and E-commerce.
ICON, as a sponsor of this program, offers seed investment to selected projects. Deblock Japan also provides support for global fundraising strategy through its network of venture capital funds and early-stage investors both inside and outside of Japan.
Selected projects will receive acceleration services, technical support, and fundraising support. Deblock Japan provides guidance for token economy design, go-to-market strategy, business development, pitch deck preparation and review, and introductions to quality service providers (law firms, PR firms, accounting firms, etc.). Additionally, Deblock offers blockchain-related QA technical support via ICON’s engineering team as well as 25% discounted smart contract audit services based on its partnerships with domestic and overseas code audit companies.
Partners for the Tokyo Launchpad include: Anderson Mori & Tomotsune, B Cryptos, Gracone, LayerX, Yanagisawa and Company, and Wachsman.
Social media metrics
The charts above illustrate an increase in the number of Telegram and Twitter followers. In general, ICON foundation experiences average level of social activity.
The graph above shows the dynamics of changes in the number of ICON Reddit subscribers, Twitter followers and Facebook likes.