Bitcoin cash supporters were greeted this week by a new development — A counterparty protocol for the BCH network. The original counterparty network is a peer-to-peer platform launched in 2014.
Counterparty is a free and open platform that provides powerful financial tools for anyone who has an Internet connection. Using the capabilities of the Bitcoin network, Counterparty creates a reliable and secure market directly on Bitcoin, expanding the functionality of Bitcoin from the peer-to-peer payment network to a full-fledged financial peer-to-peer network.
In addition to sending money without the mediation of third parties, you can trade, conduct business and deal with advanced financial contracts, without relying on anyone to retain your funds or keep records. Along with the Counterparty protocol, the platform consists of a proprietary XCP token to perform advanced operations and a secure Counterwallet browser to provide functionality.
In order to bootstrap the protocol’s native currency, developers performed what’s called Proof-of-Burn. This method requires the initiation of sending a cryptocurrency to an address that is unspendable. During the creation period of XCP in January of 2014, 2125.63 BTC were ‘burned’ by being sent to an unspendable address. Essentially the counterparty protocol can create other types of assets like bond notes, collectible cards, and loyalty rewards that are backed by the security of the BTC blockchain.
“Now a new forked version of the counterparty protocol is being created for the bitcoin cash blockchain — The counterparty protocol for BCH will have its own native currency called XCPC, and will be used to pay for the registration of asset names,” explains the XCPC team.
More generally, XCPC represents stake in the counterparty.cash platform on the Bitcoin (Cash) blockchain and it is the voting currency for changes to be decided on by the user community.
At the moment the team is having a “community consultation” to discuss the best ways to get counterparty for bitcoin cash operating smoothly. Interested volunteers and those who want to pitch ideas to the XCPC team can join the conversation to discuss the project’s goals. On February 1 the team will outline the platform’s logistics and the official launch will be on March 1, 2018. According to the XCPC developers, the forked counterparty protocol will allow full communication with the BCH network.
Bitcoin cash supporters have been talking about a counterparty implementation for quite some time and people have discussed creating implementations for the client. There was even a counterparty pull request submitted to the Bitcoin Unlimited codebase back in March. BCH proponents seem excited about a counterparty platform for bitcoin cash as it could lead to asset creation alongside possibilities like a Turing complete system.