Iced coffee is, at its most basic, coffee brewed with hot water and then served cold. The hot extraction is what differentiates it from other cold coffee methods: heat dissolves aromatic compounds more quickly, giving iced coffee its characteristic brightness, acidity, and complexity.
When you brew over ice — or cool the coffee rapidly — you lock in those volatile aromatics before they have a chance to dissipate.
The result is refreshing, crisp, iced coffee. Depending on the beans you use, you might pick up citrus, stone fruit, floral notes, or a clean, tea-like finish, which is the benefit of a hot extraction. The tradeoff is that iced coffee has less room for error: if it sits too long before being cooled, oxidation sets in fast and the flavors turn flat.