For everyone confused by the drama surrounding certain blockchain projects this week, it might be time to take a break and look at some alternative platforms – starting with Counterparty.
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As examples of what the platform can do, Bitcoin.com asked Trevor Altpeter and other members of the Counterparty Foundation to name their favorite projects built using Counterparty or using its tokens. The top not-quite-ten list is below.
First, some explanation of Counterparty and the way its tokens work is necessary, as it works differently to other blockchain projects.
Counterparty was started as a means to create new digital assets and other decentralized financial while using the Bitcoin blockchain. Counterparty also has its own blockchain, which receives instructions from bitcoin’s chain via a process known as “embedded consensus.”
It interacts via its native “currency” XCP, which is not a competitor to bitcoin – and cannot exist without it. XCP value was created in January-February 2014 by sending bitcoins to unspendable addresses.
This “proof of burn” method was intended to avoid pre-mines and token sales, which are often used to raise funds for other projects, but remain controversial with some users