Counterparty
Crypto Overview
Purpose and Utility
Counterparty (XCP) is a protocol built on top of the Bitcoin blockchain that enables the creation and trading of digital assets and non-fungible tokens (NFTs). It was launched in 2014 and allows users to create, send, trade, and execute smart contracts directly on Bitcoin's blockchain.
Business Model and Implementation
The platform enables several key functionalities: creating and trading digital assets, issuing tokens, and executing smart contracts. The XCP token is used for paying transaction fees, creating assets, and as collateral for specific protocol operations. All transactions are recorded on the Bitcoin blockchain using a technique called 'OP_RETURN'.
Real-World Adoption
While Counterparty was one of the first platforms to enable NFTs on Bitcoin, its usage has decreased significantly since its peak. Current activity is primarily focused on asset creation and trading, though at relatively low volumes compared to other platforms.
Development Activity
Development activity has been minimal in recent years, with most updates being maintenance-related. The project maintains basic functionality but hasn't introduced major new features recently.
Token Distribution
XCP tokens were initially distributed through a 'proof-of-burn' mechanism where users destroyed Bitcoin to receive XCP. This created a fair launch with no pre-mine or founder allocation. The total supply is fixed at approximately 2.6 million XCP.
Crypto Impact
To assign a comfort level investing in Counterparty from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Counterparty.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.