What Is Counterparty (XCP)?

Counterparty (XCP) is an open-source platform that claims to allow users to create and trade any kind of digital token. Counterparty aims to enhance the functionality of Bitcoin by "writing in the margins" of conventional Bitcoin transactions, allowing for innovation and sophisticated features not feasible with standard Bitcoin software. The Counterparty protocol is claimed to be thoroughly tested. Counterparty aims to allow anyone to write customized digital agreements or programs, known as smart contracts, and execute them on the Bitcoin blockchain. Real-world scenarios are now turned into code and performed automatically without the need for an intermediary using Bitcoin's decentralized ledger network and Counterparty's built-in scripting language.

Where BTC (or Bitcoin) isn't technically viable, Counterparty (XCP) may be employed to give functionality. For example, XCP is used as the currency to pay for all smart contract code execution. XCP represents a stake in the Counterparty protocol and serves as the voting currency for community-driven changes by the community.

A desktop wallet, a web wallet, a mobile wallet, and a chrome extension wallet are the types of wallets available on the Counterparty platform. These wallets aim to give all of the features of the Counterparty reference client while keeping their funds secure.

All transactions are signed on the device when users use one of the Counterparty wallets. Private keys are not saved on the servers. For security, all information sent to the servers is first encrypted by the wallet client, and when users log out, all traces of their session are wiped. For easy and safe access, users only need their unique passcode.

Counterparty tokens, which run on the bitcoin blockchain, can be used for a variety of reasons and act as their cryptocurrency. Custom tokens, unlike regular bitcoin, can be used to represent any value.

Tokens are now being used for:

• conducting successful crowdfunding and voting

• monetizing access to DAPP software features

• representing a product or personal brand

• acting as a kind of "blockchain domain name"

• acting as a proxy for real-world goods or services (i.e., tokens redeemable for paper, biofuel, etc.)

• acting as a reward for providing valuable time or resources

• acting as an educational service exploring the capabilities of blockchain

… and purely for fun.

History of Counterparty (XCP)

Adam Krellenstein, Evan Wagner, and Robby Dermody are the founders of the Counterparty platform. The platform of Counterparty was founded in 2013.