Decoding ICON’S New Fee 2.0 System And It’s Benefits To The Blockchain Network

Decoding ICON’S New Fee 2.0 System And It’s Benefits To The Blockchain Network

By Blockspectator | Blockspectator | 16 Jul 2019


For a company that wants to see its blockchain technology used in essential institutions like banks, hospitals, and universities, ICON (ICX) needs to attain a perfect scale of usability. Which is why on July 15th, ICON introduced Fee 2.0 – a unique and proprietary transaction system developed for the ICON network.

This latest system makes it easier for ICON Users (or ICONists) to access services provided by the different decentralized applications on the platform without paying transaction fees. The Fee 2.0 is comprised of two main components, namely the Fee Sharing feature and the Virtual Step feature.

Each of these two features works in unique ways to make sure using and operating d’Apps is always straightforward. For instance:

The Fee Sharing Feature

With Fee Sharing, the d’App administrators have the option to pay entire transaction fees for their users. We see this being pulled off in other ways, for example, when web apps absorb transaction fees, essentially cutting their profits so that customers don’t get a price shock at the checkout. The fee sharing feature, however, works even better because it removes the need to create crypto-wallets and purchase cryptocurrency allowing users to order services directly.

The Virtual Step Feature

The second component to the fee 2.0 system, the virtual step feature helps ease pressure on d’App administrators that is brought about by the fee-sharing system. Instead of the actual ICX – ‘Virtual steps’ are created via an ICX staking process which enables the operators to pay for their users’ transaction fees. As d’App operators’ usage numbers swell, and their SCORE increases. (A SCORE is a Smart Contract on Reliable Environment) Their fees rise significantly as well, to curb this and to prevent these fees from rising to excessive levels, thus affecting service operation stability. Operators can deposit ICX gradually over some time, virtual steps then pay the fees essentially helping to offset this fee burden.

The Virtual Steps are generated every month with deposit ranges of between 5000 to 100000 ICX. You can find more information on virtual steps here.

A Simpler Convenience For ICON Users

With fee 2.0, users won’t be required to set up wallets or create a cryptocurrency – a process that wasn’t just time-consuming but also quite technical. The newer process is much more frictionless because all the complicated steps are taken out, making the transaction smoother and virtually costless. This not only encourages developers to develop innovative and problem-solving DApps in an optimal environment, but it also fuels mass user adoption.

According to Coingecko, the price of ICX has gone up 0.8% to $0.274031 almost 24 hours after the company’s recent announcement with a trading volume of $15,078,490.

ICON, ICX

The news of the new Fee 2.0 System did cause a spike in ICX price, although it tailed off somewhat later | Source: Coinkgecko

According to a series of tweets from an ICON supporter, the company will be announcing an ICX staking this coming August that will allow users to delegate their ICX to either d’Apps, EEPs or validators. By staking users will get rewarded a percentage of the total network staked.

Twitter

So evidently a bright future is in the works for the ICON community.

 

Featured Image Source: CryptoNinjas/Culture Trip


Blockspectator
Blockspectator

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Blockspectator
Blockspectator

Blockchain and cryptocurrency news focused on mass adoption. New products, giveaways & more!

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