What is Counterparty? Built on Bitcoin, Counterparty is a blockchain platform that offers users the ability to create tokens. In this article, you can find answers to questions that investors wonder, such as what is Counterparty, what it offers, what is XCP, what it does, how to get it. cryptocoin.comWe have compiled it for you.
What is Counterparty?
Counterparty is an innovative financial platform for creating peer-to-peer markets and financial instruments. It works as a decentralized Blockchain network for the creation of private tokens. The project aims to eliminate the need for a trusted third party or intermediary. For this, it aims to provide open and secure financial markets and tools. Counterparty decentralizes finance, as the Internet does in traditional institutions with its knowledge creation and sharing. So basically it is a DeFi based Blockchain project.
The same finance goal is provided by the Ethereum and Waves projects. But the difference is that Counterparty is a network built on Blockchain. Ethereum and Waves have their own Blockchain networks. Counterparty is built on the Bitcoin Blockchain for the creation and execution of smart contracts. This expands the functionality of the Bitcoin Blockchain in unprecedented ways. This also brings a lot of security and reliability to the entire project process as it uses the popular and secure blockchain.
What does Counterparty offer?
Counterparty is a platform for user-generated assets on Bitcoin. It consists of a protocol, a set of features, and an API. Taken together, it allows users to create and trade assets on the Bitcoin network. However, smart contracts used for purposes such as token creation on the platform have a programmable structure. Also, these smart contracts are fully compatible with Ethereum code. Therefore, almost all contracts can work on both platforms. Counterparty also provides some financial tools such as contracts for difference and fully secured binary options. In this respect, it works like a DeFi project that allows for peer-to-peer asset trading.
What is XCP? What does it do?
XCP is the asset powering the Counterparty platform, that is, its native cryptocurrency. This cryptocurrency is used to create private tokens and execute smart contracts. XCP has a “Proof-of-Burn” consensus mechanism. In this mechanism, a certain number of Bitcoins are sent to a non-spendable address and XCP tokens are generated on the network to exchange Bitcoins. A total of 2.65 million XCP tokens have been created by burning 2130 Bitcoins so far. Because Bitcoin assets are burned, they will never be spent and used again. This means that XCP cannot be mined. This method provides equal and fair access to everyone.
What is Counterparty? How to get XCP?
Investors interested in the Counterparty project should access exchanges where the XCP coin is listed. These exchanges include Poloniex, Bittrex, and Bter. Interested investors must become a member of one of these exchanges and verify their accounts. By doing this, they are able to deposit an asset into their wallet that matches their XCP parity. After depositing an asset suitable for XCP parities in their wallet, a buy order can be placed for the token.
