On Thursday, the smart contract protocol Counterparty reached its millionth transaction. Bitcoin Magazine received an update on the status of the project from Shawn Leary, the newly elected Counterparty community director.
Counterparty was launched in January 2014 with the creation of its native currency, XCP. Unlike typical ICOs (initial coin offerings) today that transfer funds to the founders, XCP was created by “burning” bitcoins, whereby bitcoins were sent to a special address (one for which no one owned the private key) that rendered them unspendable. Those who destroyed their bitcoins in this manner in return received an amount of XCP in proportion to their bitcoins lost.
This “proof of burn” process put all Bitcoin users, including the founders, on an equal footing in terms of obtaining the native XCP token. According to Leary, the Counterparty team hopes that its unique founding sets the tone to attract new projects that won’t take advantage of users’ funds.
“We want to continue this legacy and hope it wards off scams and attracts genuine projects that use our protocol for what it was intended: decentralized markets,” said Leary.
Counterparty doesn’t have its own blockchain; rather, it exists entirely via the Bitcoin blockchain. All actions taken on
Read more ... source: Bitcoin Magazine
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