What is Counterparty (XCP)?
Future of XCP Cryptocurrency and know how to buy XCP

#1 – Counterparty: The Basics

What is Counterparty?

  1. Counterparty is a financial platform which creates peer-to-peer financial applications on the Bitcoin blockchain.
  2. The platform allows its users to create new kinds of digital tokens as well as trade any digital token. It also enables users to write digital agreements (smart contracts) and execute them on the Bitcoin blockchain.
  3. XCP is Counterparty’s native token used on the platform for decision-making as well as to pay for the execution of smart contracts on the platform. It is essentially used where Bitcoin’s use is not technically possible.

Counterparty Development

  1. The Counterparty cryptocurrency was developed by a non-profit called Counterparty Foundation, with a vision of sustained growth and an environment encouraging open development.
  2. Robert Dermody, Adam Krellenstein and Evan Wagner co-founded the Counterparty platform and coin.
  3. Robert Dermody, along with founding Counterparty, also created its wallet, Counterwallet. He is an entrepreneur with a varied background and nearly 20 years of experience in software development, system administration, sales, operations and professional services.
  4. Adam Krellenstein, along with co-founding Counterparty, is also the lead developer and chief architect of its protocol.

 

#2 – What are the advantages of Counterparty?

Counterparty Technology

  1. Counterparty embeds data into regular Bitcoin transactions, making these transactions look like normal Bitcoin transactions to Bitcoin clients. There are specific rules which will differentiate a Counterparty transaction from a Bitcoin transaction, which can be recognised by a Counterparty node.
  2. In other words, Counterparty is lying on top of the Bitcoin blockchain, rather than being its own separate blockchain.
  3. The embedded system of Counterparty, known as an “embedded consensus” system allows it to work with any other blockchain in the crypto space including sidechains.
  4. XCP is Counterparty’s native token, generated through a “Proof-of-Burn” process which lasted for about a month in 2014. This process entails sending Bitcoins to an unspendable address and exchanging them for an equivalent number of XCP generated on the spot on the Bitcoin blockchain.
  5. Users would send their Bitcoins to a verifiably unspendable Bitcoin address, where each Bitcoin would be exchanged for 1000-1500 XCP, with the value decreasing with the time taken for the exchange to execute.
  6. The Bitcoin thus sent to such an address could never be used again, and they were thus considered as “burned”.
  7. This process succeeded in giving everyone including founders an equal opportunity, and ensuring that no one would have a pre-existing supply of the token, making it truly decentralized and fair.

Use Cases

Several projects have already been built on the Counterparty technology, of which a few of the most used ones are:

  1. Age of Chains is a trading card video game played in an imaginary world far into the future.
  2. Age of Rust is a multiplayer mobile adventure gaming app which is based on strategic thinking and role play.
  3. GetGems is a fully scaled instant messaging app which is also a Bitcoin wallet, in which the GEMZ token can be sent and received using the Counterparty protocol.
  4. There are several other projects, including interesting video games, incentive or reward platforms, token management systems and much more.

 

#3 – How to buy and store Counterparty tokens (XCP)?

How to buy XCP

Counterparty coins (XCP) are available for exchange in only 5 exchanges, which is surprising considering the age of the cryptocurrency. The exchanges include Upbit, Bittrex, Tux Exchange, Poloniex and Zaif, all of which accept Bitcoin.

Zaif is the only exchange which accepts any fiat currency (Japanese Yen) in exchange for the Counterparty coins.

  1. These are just platforms to trade XCP coins, but people often require help to decide which one to buy from. This help is what CoinSwitch, one of the best cryptocurrency exchanges provides, by displaying the prices at the exchanges it’s sold in, all at one place. It supports more than 140 coins and 45,000 pairs of cryptocurrencies. You can choose any pair you want with your XCP token, and CoinSwitch will help you by facilitating the comparison between the exchanges.
  2. What’s more - with CoinSwitch, you need not rely on wallets on the exchange you’re buying from. Instead, all transactions can happen to and from your very own private wallets.

XCP Storage

  1. Counterparty coins can be stored in a number of wallets, all of which are listed on the Website.
  2. Counterwallet is its web wallet which promises to be secure as it doesn’t store users’ private keys on any server and all transactions are signed on the device rather than a server. Rarepepewallet is another web wallet which allows buying and selling of assets using XCP or their own currency Pepecash.
  3. Mobile wallets include Book of Orbs and Monya, both of which are compatible with Android as well as iOS mobiles and boast of additional features which complement the storage and trade of Counterparty coins.
  4. XCP is also supported by several open-source wallets compatible with any device and also the web, including Vanilla XCP, CounterTools and FreeWallet.
  5. IndieSquare Wallet is a mobile as well as web wallet, compatible with Android and iOS smartphones and also usable through Chrome or Firefox.

 

#4 – What is the future of Counterparty?

Also Read: Complete Analysis of Counterparty | Live Counterparty (XCP) Price Charts And Predictions

Market Cap and Global Acceptance

  1. The supply of XCP was created between January and February 2014 in a rare process called “proof-of-burn” wherein anyone could exchange their Bitcoins for these coins.
  2. Bitcoins were exchanged for XCP on a protocol level by following the given procedure:
    1. Users would send their BTC to an address where it could not be used.
    2. Each BTC was exchanged for 1000-1500 XCP, the number reducing with time.
    3. Each address was limited to 1 BTC, and the reward bonus decreased linearly with block index.
  3. No XCP coins were created after the above-mentioned period, and the number of coins cannot increase further.
  4. The circulating supply of XCP is about 2.61 million coins, with a market cap of about 19.42 million USD and an individual price of $ 7.42 USD, as of July 2018.

Price History

Date

Open

High

Low

Close

Volume

Market Cap

Jul 01, 2018

7.48

7.74

7.34

7.44

67,063

1,95,67,100

Jun 01, 2018

11.62

12.35

11.62

12.21

1,56,421

3,04,03,500

May 01, 2018

19.87

20.9

18.79

20.9

4,28,577

5,19,89,500

Apr 01, 2018

10.43

11.09

9.65

10.57

1,49,261

2,72,86,900

Mar 01, 2018

21.95

22.69

21.37

21.98

4,30,538

5,74,57,000

Feb 01, 2018

43.1

45.84

32.17

33.52

25,37,370

11,28,12,000

Jan 01, 2018

32.89

33.93

30.99

32.15

14,50,800

8,60,80,500

Dec 01, 2017

21.38

23.32

18.36

21.64

11,07,340

5,59,72,600

Nov 01, 2017

9.57

10.2

9.49

10.04

1,06,032

2,50,56,100

Oct 01, 2017

11.58

11.89

10.6

10.64

2,84,139

3,03,09,800

Sep 01, 2017

14.91

16.11

14.72

16.11

4,50,566

3,90,30,000

Aug 01, 2017

8.46

9.59

8.35

9.44

3,66,618

2,21,43,600

Jul 01, 2017

13.1

13.27

10.45

10.67

6,25,391

3,42,93,200

Feb 01, 2017

2.92

2.96

2.64

2.85

44,982

76,39,790

Aug 01, 2016

2.46

2.47

2.18

2.18

40,141

64,52,260

Feb 01, 2016

0.661377

0.664069

0.594248

0.647077

4,446

17,38,480

Aug 01, 2015

1.82

1.86

1.74

1.78

2,396

48,08,560

Feb 01, 2015

1.92

2.05

1.9

1.97

3,086

50,72,910

Aug 01, 2014

2.54

2.59

2.27

2.49

6,175

67,25,570

Feb 15, 2014

5.82

7.82

4.54

7.62

42,170

1,54,18,500

Trends so far

  1. Unsurprisingly for a coin more 4 years old (as of July 2018), the price of XCP has seen some major variations through the years. Initially starting off at $ 7.62 per XCP in February 2014, its current price as of July 2018 is almost the same ($ 7.42). It was at a minimum of about $ 0.483 in January 2016, and it peaked in January 2018, at a value of about $ 88.93 USD.
  2. Considering the age of the Counterparty cryptocurrency, its relatively low market cap rank as of July 2018 is a bit surprising. It has a rank of 307 among cryptocurrencies worldwide as of July 2018.
  3. Counterparty may have a discouraging market cap rank considering how long it’s been around in the crypto space, but the versatility of the platform is definitely impressive. The crypto space has evolved a great deal since Counterparty’s launch in 2014, but the platform still remains one of the most versatile and user-adaptable platforms among the rest. This makes for a bright future for the cryptocurrency.

 

#5 – What makes Counterparty different from other cryptocurrencies?

  1. Counterparty is made unique by its rare method of token generation - the “proof-of-burn” method which has no pre-sale, ICO or mining of the token. This gave everyone a fair opportunity to own the tokens through the exchange or “burning” of Bitcoins to generate an equivalent 1000-1500 Counterparty tokens (XCP).
  2. Another thing that makes the platform stand out is its sheer versatility in the crypto space despite the fact that it runs on a technology which is 4 years old. Its number of use cases surpass any other cryptocurrency.
  3. It was also the first cryptocurrency to allow the development and execution of Smart Contracts in the Bitcoin blockchain.

 

#6 – Should you invest in XCP?

  1. Counterparty’s position in global market cap rankings may be discouraging, but it is not indicative of the vast potential and promise the coin shows.
  2. It is made unique by the fact that it has executable smart contracts on the Bitcoin blockchain, which will eventually lead to an increase in the demand and hence the value of the token.
  3. The platform is also immensely versatile, with over 30 projects already in use and more in their development stages.
  4. The value of the token would increase with an increase in demand for the platform, which makes it a good long-term investment opportunity.
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