Counterparty (XCP) is a form of digital cryptocurrency, which allows you to create assets, also referred as the user-defined assets since you are the one who will create the particular asset. With Counterparty, there will be no third parties such as banks, managing funds, and middleman.
It’s a decentralized platform that allows users to declare various commodities. For instance, if you want to present a precious metal you can do that easily. According to XCP developers, users are also allowed to start a company and have shared in that particular group, that would be then automatically called as assets.
In a simpler sense, you will be able to create a digital token, which can represent a particular value. It can be exchanged to one another or also referred to as the peer-to-peer network, and this creates in a matter of seconds.
How XCP works?
The Counterparty created on the Bitcoin blockchain technology, for you to understand it easily, just think of XCP as a car and the Bitcoin technology as its gasoline. The technology allows nodes, which means the data communication equipment to connect with each other.
The XCP just referees as the native currency of the digital cryptocurrency Counterparty; it has its equivalent value when converted into US dollars. It is used to represent a stake in the Counterparty protocol.
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