Counterparty Brings DEX And More To Bitcoin
Hey Jesspeculators
The cryptocurrency market has primarily been about trading value, getting in and out of Bitcoin or other coins and back into fiat or stablecoins. Exchanges facilitated that, while centralised exchanges have improved their service over the years, the market has moved towards non-custodial trading with the growth of decentralised exchanges or DEX's.
Many of the markets most popular DEX's are built on Ethereum or BSC, with Uniswap and Pancakeswap taking up a lot of the headlines with their growth in liquidity. But they are not the only game in town, other chains offer DEX's too, and even Bitcoin will have DEX's.
At the moment, something resembling a DEX would be Counterparty.
What is Counterparty?
The Counterparty protocol is an open-source and extensively tested protocol that allows users to build on the Bitcoin blockchain. Its primary function is to allow users to create and trade any digital token; Counterparty enables anyone to write smart contracts and execute them on the Bitcoin blockchain.
Using Bitcoin’s decentralized ledger network and Counterparty’s built-in scripting language, real-world scenarios can now be transformed into code and executed automatically with no need for an intermediary.
Counterparty extends Bitcoin’s functionality by “writing in the margins” of regular Bitcoin transactions similar to what we see with DLC's and helps open the door for innovation and advanced features not possible with ordinary Bitcoin software.
Token issuance XCP token
The one issue I have with Counterparty.io is that it has a native currency which I don't think it's really needed. Counterparty token is called XCP, which was created during January 2014 by 'proof of burn', a unique alternative to a crowdsale or ICO, designed to maximize the project's legitimacy by eliminating any possible source unfairness in the launch.
Unlike other currencies, XCP is mined by sending Bitcoin to an unspendable address, but why would I want to burn my Bitcoin for another coin? I don't see the value in it.
Burning BTC as a fundraiser
To create XCP in the network, 2140 BTC, worth between US$ 1.6 million and US$ 2 million at the time, was destroyed by sending them to a provably unspendable Bitcoin address. This was done to avoid potential legal issues. I get they wanted to avoid being seen as a "security", but still not a huge fan of this model.
Counterparty on lightning
The integration of the lightning network is currently under development, and payment channels will be set up to support the rapid exchange of assets and are compatible with the Lightning Network.
The update will allow for the use of uni- or bi-directional payment channels with Counterparty tokens. Future work will allow the use of the Lightning Network with Counterparty, enabling the rapid, decentralized and off-chain exchange of tokens that settles onto the Bitcoin blockchain.
Have your say
What do you good people of HIVE think?
So have at it, my Jessies! If you don't have something to comment, "I am a Jessie."
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I agree with you on the fact that I would not want to burn my BTC for some XCP. Also the BTC they burned from doing so is $2 million at most but now its worth like $125 million. Not only has the token been on a huge downward trend, its value has tanked quite a bit. Its price is essentially almost the same as the price when it started.
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Exactly I would have much preferred them to say okay if you like our project lock BTC into an escrow for let’s say a year and we airdrop you some of this token!
But to burn BTC with a superior monetary policy and network effect for some random token is just dumb! I don’t know why people feel the need to tokenise things all the time! So many projects would be so much better if they instead of focusing on a token built the project and used BTC as the asset
Yea the only point in burning tokens is to keep prices high. I think its much better to have some use cases as the token sink instead. So I think the escrow option is a good choice but I don't know if people would really want to wait an entire year.
I think its better to just have a buyback program for the BTC and say that you will buy it back at a certain price after a year. By doing so, you set a minimum floor and guarantee some profits if things don't play out.
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I like the idea of a buy back it keeps you honest and puts pressure on you to make profits so that you still have capital to buy back and to run your project
https://twitter.com/bitinvest_news/status/1377899415516684288
Is this like another Hive ?
We are able to create 2 layer tokens on hive too ?
What does this means - “writing in the margins” ?
Sorry just trying to understand it.
Yes it's exactly like HIVE engine, everything happens on a side chain and then when you're ready to leave you secure it to the base chain with a single transaction. So I can trade on HE and then when I'm ready I can take the HIVE I earned and put it back to my main wallet on the main chain
Writing in the margins just means that a lot happens between the transaction you create to get in versus the transaction you use to get out
curious, thanks, don't fully understand but will keep an eye on
It's still needs to show that it's worth our time, just thought i'd bring it up so people know about it, but it has yet to prove how useful it can be to the Bitcoin ecosystem
I remember when CounterParty came out and the Overstock.com CEO seemed to be a big fan I believe. I never was impressed or felt like we saw would could be done with that tech possibly because the Bitcoin blockchain quickly ran into congestion issues.
Personally I feel like Bitcoin will just be owned mainly by institutional players and retail people will mainly just have them on custody services and it will basically be unusable to really send around without getting kicked in the teeth constantly with fees. That is why personally I don't plan on interact with Bitcoin off of other networks like the Binance Smart Chain.
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I can see why they ran into issues yeah, it was set up with too much focus on final settlement via Bitcoin and I think it's actually a better product to run on lightning than the main-chain.
You're probably not wrong institutions will own a lot of BTC because early retail holders will cave for a few million in printed paper and that's just the nature of the beast. However, to think that any of these other chains that were backed or VC funded aren't well and truly corporatised is a bit silly.
At least when corporates want to own Bitcoin we get to kick them in the teeth and command a good price with these alts they've already got positions or pre-mines stash
I feel you about people caving for a few million in printed paper. I think if a person gets to other hard assets they will be ok though.
That is why I want to buy some land as an investment with the money and invest in my other businesses that are more ever green.
Also I like the depreciated supercars that are actually retaining or going up in value.
I don't want to trade numbers in a crypto wallet for numbers in a bank account. Makes no sense.
I'm more about the travel and experiences and then always retaining value in assets that will at least provide some sort of hedge against inflation.
I think in the US we are headed for 10% inflation a year basically so I figure if I get the value of the crypto holdings up enough to where I'm able to earn a solid return through the valley and just live off the earnings I'm hopeful it can be somewhat of a magic money printer no matter if we are in a bull are bear market with crypto.
I get you, I am on the same buzz, not sure what I want to own yet, real estate is stupidly overpriced so getting a good deal takes some work. I do like the idea of owning stocks with a decent PE ratio, probably things in FMCG or commodities once the crypto yields normalise again.
Not much of a collector involves having storage space, or buying space and insurance, appreciation versus the cost of holding puts me off the supercar trade, but I guess when you factor in the tax savings it can work but I need to do the math.
In SA, we have 4.2% inflation as stated by the government, but the money supply before COVID was 12% annualised growth over the last 15 and GDP hasn't exactly boomed in that time, so take your pick between 4.2% and 12% on how hard we're getting fucked.
As a Bitcoiner though shits getting stupid cheap when I measure in sats, 1 BTC is almost at 1 million Rand/ZAR now so our paper money is crumbling below satoshi value. So if your house is worth a 1-2 million which is like an average ass house here, soon its worth less than a BTC lol and people still think they're getting rich with their annual hosing appreciation lol
You are a smart dude. You think of every angle like I do. With luxury car / supercar purchases it is more about going fast and not losing near as much as someone loses just buying a new Honda or something. The insurance on a lot of the cars isn't as expensive as you think but if you get a high end supercar that is still valued at over $200,000 that is when companies don't want to insure it and all that.
What I have noticed is a lot of people don't know the prices or model variations with some of these Audi, Mercedes, BMWs....etc and they can lose so much value in the first 5 to 7 years it is unreal but the tech that was inside them was ahead of the American products at the time and takes about 3 or 4 years for the American manufacturers to copy those features essentially.
So there are some good values out there. A lot of people will say it is a maitenence nightmare .....etc and it certainly could be but in my mind if the car gets down to be worth $10,000 or $15,000 that retailed at an insane $130,000 than just keep going and if something major happens make the decision if it is worth fixing or selling to someone who can fix it themselves if they are tooled up to do so. Some of these Audi models will have the air ride go out and other various major issues.
So I think the big thing in my mind is there is a balance between thugging it out and not spending any money to grind it out and actually enjoying things and living the dream while you are young.
You don't want it to become all about what you can't have. My parents are more in that mindset of always saving and they actually cut themselves off from good returns and being able to do anything. It can get weird. During the bear market I really tried to keep my spending low and I still am to some respect but really want to flex on some McBitches when the time is right. The subtle flex driving down Main Street with the scissor doors up playing songs like this.
I never thought about that, but you make some good arguments, I will add it to my considerations, here the second-hand market is pretty big, many people bring in supercars from US/EUR/JPN and because the currency is so bad they do tend to hold their value, but I am not expert on cars. You sound like you know whats a bargain and what is a clunker and I am sure you could even flip them if you build up a good network in the super car community.
What I've also seen are trucks the older ones also tend to hit a point where they start to hold their value and as people migrate out of cities, they're going to want to swap their car for a truck so it could be a good place to hedge in over the next few years.
I wont say I am there where I want to cash in my chips for lifestyle tokens but I get you man, thats what we do this for so we can live a life we feel we deserve, I just want it to be at a level where I have no fear that it can be taken from me. If i start flexing I want to flex for life, not a here today broke tomorrow
For sure..... we want to flex for life!
I have some thoughts that the next crypto bear market will be worse than the last one because of more and more people getting on leverage platforms and also DeFi lending platforms. The temptation for people to get on stuff like Compound, Venus, JustLend....etc and borrow against their existing crypto is so tempting and easier to access compared to traditional credit lines.
That in turn will cause a chain reaction so insane on a level we have never seen before when the tide goes out with people getting torched who extended too far.
People took out credit lines from the traditional market and borrowed against their existing credit as well.
What will start the fall? Likely the big institutions dumping their coins. They can't sell on the open market because big buyers won't buy at those level so they have to dump on the n00bs getting in buying tops.
I'm going to turn this into a full post!
thank you for sharing an interesting article, have a nice day
thank you very much for sharing, have a good day and good mood
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