[quote author=PhantomPhreak link=topic=270.msg2194#msg2194 date=1399136233]
[quote author=coinlock link=topic=270.msg2192#msg2192 date=1399132403]
Hi guys,
Just trying to understand counterparty better. Are XCP used in any way to send assets, or are they only consumed on issuance, callable, etc. ?
Also if an asset is divisible, can any receiver divide it up to 8 decimals however they want, so long as they pay the normal btc transaction fees and the dust limit?
Any comments on general scalability? It seems like you would have to scan back-in-time validating the counterparty rules on every transaction.
Finally, it seems like there should be no problem using multsig or hard wallets.
Thanks.
[/quote]
XCP are used to pay a small fee for issuing assets, and they are used for making bets, etc…
I don’t understand your question about the divisibility of assets. All divisible assets are divisible to eight places.
counterpartyd maintains a database constituted so that you don’t have to go back and reparse any transactions… you simply pull current balances, and so on.
Counterparty does not at the moment support multisig transactions. Hardware wallets are fine, though.
[/quote]
Is XCP used for betting in all cases? Why can’t BTC be used to pay for bets? Meta comment: the takeaways from this thread would be highly useful to include in your FAQ
[quote author=Giants link=topic=270.msg2292#msg2292 date=1399670535]
[quote author=PhantomPhreak link=topic=270.msg2194#msg2194 date=1399136233]
[quote author=coinlock link=topic=270.msg2192#msg2192 date=1399132403]
Hi guys,
Just trying to understand counterparty better. Are XCP used in any way to send assets, or are they only consumed on issuance, callable, etc. ?
Also if an asset is divisible, can any receiver divide it up to 8 decimals however they want, so long as they pay the normal btc transaction fees and the dust limit?
Any comments on general scalability? It seems like you would have to scan back-in-time validating the counterparty rules on every transaction.
Finally, it seems like there should be no problem using multsig or hard wallets.
Thanks.
[/quote]
XCP are used to pay a small fee for issuing assets, and they are used for making bets, etc…
I don’t understand your question about the divisibility of assets. All divisible assets are divisible to eight places.
counterpartyd maintains a database constituted so that you don’t have to go back and reparse any transactions… you simply pull current balances, and so on.
Counterparty does not at the moment support multisig transactions. Hardware wallets are fine, though.
[/quote]
Is XCP used for betting in all cases? Why can’t BTC be used to pay for bets? Meta comment: the takeaways from this thread would be highly useful to include in your FAQ
[/quote]
XCP is used for betting in all cases. BTC cannot be used for bets, because it cannot be held in escrow by the protocol.
[quote author=Giants link=topic=270.msg2189#msg2189 date=1399128458]
Counterparty the protocol is a set of rules for interacting with the units of account in the ledger.
[/quote]
this is what i am trying to understand. I cant imagine how a DEX is possible technically or how the bets or how concensus is formed in a decentralized way without the blockchain. Satoshi described how bitcoin works. Its simple and easy to understand. I can explain it to anyone in a few minutes.
I cant explain counterparty to anyone. I can tell u all the things u can do with it, but then if someone says, i dont trust it, this cant work my answer is only: "well others tell me it works, but i have no clue why and how".
So again: what is the counterparty protocol?
[quote]I cant explain counterparty to anyone.[/quote]
Take a deep breath. Counterparty uses the Bitcoin blockchain. There is only one Bitcoin blockchain, and Counterparty uses it. The Bitcoin blockchain is the world’s strongest distributed computing network with a nearly flawless 5 year security track record. Hundreds of millions in VC capital is being invested in Bitcoin and hundreds of millions more is being used to secure the blockchain from external threats. Putting your data inside Bitcoin is as close as it will EVER get to making your data INDESTRUCTIBLE. If anything, people hate counterparty for this reason alone. Whine whine whine, counterparty data isn’t going anywhere, that’s so unfair. Yuppy yuppy yuppy, whine whine whine. My grandma can’t run a full node. Charlie Munger said Bitcoin is doomed. This is all because Counterparty is using the Bitcoin blockchain as their personal database which is o unreasonable. I mean, who would EVER want their critical business data to be invincible? There’s no demand for THAT!
I think you get my point. Counterparty data isn’t going anywhere.
Normally, you open up your Bitcoin wallet and send 1 BTC from Address A to Address B. With Counterparty, you send 0.00001086 BTC from Address A to Address B, and 0.0000000 BTC to a special address. The 0.0000000 BTC comes with a special pocket of data that reads: “CNTRPRTY BUY 100 LTBCOIN FOR 0.001 BTC EACH”. As I’ve said before, you can stuff arbitrary data inside Bitcoin transactions. For example, Luke-Jr included Latin prayers inside Bitcoin transactions, Dark Wallet includes stealth address information inside Bitcoin transactions, and proofofexistence.com includes notary service data inside Bitcoin transactions. Counterparty works the same way.
The Counterparty ledger was initialized during the January 2014 proof of burn event. During the PoB event, you could’ve sent BTC from your normal Bitcoin addresses to address “1COUNTERPARTYXXXXXXXXXXXXXX”.
The rules of Counterparty are set out in the “PROTOCOL”. What is a protocol? It’s a set of rules. A protocol is just a document that scopes out what you have to be doing to use Counterparty.
The RULES of Counterparty basically state, when any Address X sent 1 BTC to address 1COUNTERPARTYXXXXXXXXXXXXXX during the month of January 2014, Address X is to be initialized with a balance of 1000 XCP.
And BOOM. There’s your distributed ledger built INSIDE of Bitcoin.
How does it work? Every time the Counterparty full node starts up, it BEGINS by scanning the complete history of the Bitcoin blockchain. When it gets to the month of January 2014, the Counterparty full node looks for any bitcoin address to send BTC to 1COUNTERPARTYXXXXXXXXXXXXXX.
"Hey, Address X sent 1 BTC to 1COUNTERPARTYXXXXXXXXXXXXXX on January 8. That means I need to give Address X 1000 XCP."
And it keeps going.
"Hey, Address Q sent 1 BTC to 1COUNTERPARTYXXXXXXXXXXXXXX on January 9. That means I need to give Address Q 1000 XCP!"
And going.
"Hey, Address Z sent 1 BTC to 1COUNTERPARTYXXXXXXXXXXXXXX on January 31. That means I need to give Address Z 1000 XCP."
And it keeps on going after the PoB event is finished.
“Hey, Address Z sent 99 XCP to 1NORMALADDRESS on February 8. That means I need to give 1NORMALADDRESS 99 XCP, and subtract 99 XCP from Address Z.”
"Hey, 1NORMALADDRESS sent 19 XCP to 1REGULARADDRESS on February 9. That means I need to give 1REGULARADDRESS 19 XCP, and subtract 19 XCP from 1NORMALADDRESS."
And it keeps going. "On this date, such and such happened inside the Counterparty ledger."
THIS WHOLE TIME, we’re doing nothing but scanning the Bitcoin blockchain. It’s all being tracked inside the Bitcoin blockchain.
And remember, take this for example:
"Hey, 1NORMALADDRESS sent 19 XCP to 1REGULARADDRESS on February 9. That means I need to give 1REGULARADDRESS 19 XCP, and subtract 19 XCP from 1NORMALADDRESS."
1NORMALADDRESS can’t do this at all without first authorizing it by signing a transaction with the necessary Bitcoin private key. So the entire system is secured by Bitcoin, and tracked inside of Bitcoin by virtue of special data.
[quote author=knircky link=topic=270.msg2295#msg2295 date=1399685543]
[quote author=Giants link=topic=270.msg2189#msg2189 date=1399128458]
Counterparty the protocol is a set of rules for interacting with the units of account in the ledger.
[/quote]
this is what i am trying to understand. I cant imagine how a DEX is possible technically or how the bets or how concensus is formed in a decentralized way without the blockchain. Satoshi described how bitcoin works. Its simple and easy to understand. I can explain it to anyone in a few minutes.
I cant explain counterparty to anyone. I can tell u all the things u can do with it, but then if someone says, i dont trust it, this cant work my answer is only: “well others tell me it works, but i have no clue why and how”.
So again: what is the counterparty protocol?
[/quote]
The Counterparty protocol is like the Bitcoin protocol, but with more features. That’s it. Counterparty does use a blockchain… it just uses Bitcoin’s.
Again, the blockchain is simple to understand. also straight forward how couterparty creates token and sends them.
But when you trade there must be some sort of trade engine. Something that executes logic, which cannot happen in the blockchain since the blockchain is no more than a data store, like a file or db. There is something that matches a trade, escrows money and triggers corresponding transactions. In bitcoin there are miners that do stuff. In counterparty there are no miners. The bitcoin miners also can’t execute the counterparty “protocol”.
[quote author=knircky link=topic=270.msg2409#msg2409 date=1400709624]
Again, the blockchain is simple to understand. also straight forward how couterparty creates token and sends them.
But when you trade there must be some sort of trade engine. Something that executes logic, which cannot happen in the blockchain since the blockchain is no more than a data store, like a file or db. There is something that matches a trade, escrows money and triggers corresponding transactions. In bitcoin there are miners that do stuff. In counterparty there are no miners. The bitcoin miners also can’t execute the counterparty “protocol”.
[/quote]
Every Counterparty client does that.