What is Counterparty?
Counterparty is a blockchain-based protocol that uniquely extends the functionalities of Bitcoin. It can record data in ordinary Bitcoin transactions, thereby opening doors for innovations. For example, the Bitcoin mainnet does not support the customization of transactions through smart contracts. However, with the Counterparty Protocol, you can create specific digital agreements and execute them on the Bitcoin blockchain. The Bitcoin protocol continues to operate normally, offering a high level of security while supporting these valuable new features.
Counterparty introduces built-in script language on the Bitcoin ledger network. Therefore, it enables the transformation of real-world scenarios into code that automatically executes without the need for any third-party intervention. Technology opens the door to endless possibilities.
XCP is the native token of the Counterparty ecosystem. You can view the XCP price on the live Counterparty price chart.
Additionally, the Counterparty protocol is open source. It allows users to create and trade cryptocurrencies. The key features of the Counterparty ecosystem are:
- Tokens. Counterparty offers custom tokens with multiple utilities. These tokens run on the Bitcoin blockchain. However, unlike ordinary BTC, custom tokens have a wider range of uses.
- Decentralized Exchange (DEX). Counterparty offers a blockchain-based exchange platform. The platform enables fast, secure, and transparent asset exchange services.
- Payment Channels. Counterparty released the Lightning Network that enables fast, cheap, safe and trustless transactions between users. Developers are also building features that will enable the use of uni- or bi-directional payment channels with the network’s tokens.
- Voting. The Counterparty Protocol can also support blockchain-based voting. It uses digital signatures to establish and verify identity and voting rights. Additionally, the blockchain network enables the immutability of voting records. The protocol offers two ways to perform blockchain-based voting on the blockchain: Counterparty tokens and Counterparty broadcast messages.
- Multisignature Addresses. Counterparty supports multisignature transactions. These transactions require signatures from more than one private key to confirm a transaction. The protocol allows the creation of a Bitcoin “multisignature address” that can receive Counterparty tokens. These transactions will require a quorum of signers to transfer them to another wallet address.
Use Cases of XCP Tokens
XCP is a multi-utility token of Counterparty protocol. The digital token provides functionality, especially where it is technically impossible to use BTC. For example, the token will be used to settle fees for the execution of smart contract codes. Counterparty coin is also a governance token. It allows holders to vote on changes to the protocol. Moreover, as a store of value, the token can be traded on the exchanges that list it.
The Counterparty price may fluctuate due to changes in market factors. Thus, you should thoroughly analyze the XCP price chart above before making any purchasing decisions.
Who Founded Counterparty?
Adam Krellenstein, Robby Dermody, and Evan Wagner founded the Counterparty platform in 2013. All the co-founders are experienced developers and tech entrepreneurs.
Tokenomics of XCP
Counterparty coin was created by burning BTC to ensure fair distribution of the currency. Around 2,100 bitcoins were burned in January 2014 to create 2.6 million XCP. However, there's no max supply set, which means that more XCP tokens can be created in the future.
Check the price chart or the official Counterparty website to see the current XCP price.
