Counterparty (XCP) Cryptocurrency : Future, comparison, Review, Invest, Blockchain?

This post is based on Counterparty (XCP) Cryptocurrency Review.

Reading out textbooks and taking the sessions for your practical knowledge is not a right way to learn something. No matter at which particular area you want to target but if you want to be a master in that area or that goal you have to do it by yourself.

No book will do it till you did it practically by yourself. In respect to that talking about you cannot learn trading you have to do it. That’s the most important reason why we explain you different types of trading platform.

We Already covered many famous Cryptocurrency guide like how to buy etherum and buy bitcoins without id etc.

Today also we going to do the same thing. We are doing another review of an exchange platform that is Counterparty (XCP) Cryptocurrency review.

what is Counterparty (XCP) Cryptocurrency ?

Counterparty (XCP) is a separate platform for creating and swapping characteristic tokens. Counterparty also comes with a decentralized smart contracts. The counterparty is built on the Blockchain of Bitcoin.

Counterparty (XCP) was launched in the year of 2014 in January. Talking about the growth rate it is steady. The price of Counterparty (XCP) in the February 2014 was somewhere around $5 to $6 (300-350 INR). Now in 2017, the price of Counterparty (XCP) is around $27 and the growth rate is around more than 150$.

The Ethereum has also the same property.

So why we need Counterparty vs Ethereum?

As in the starting of the post, we let you know that Counterparty (XCP) is working on Bitcoin Blockchain for the exchange and creation of custom tokens and presenting the smart contracts.

This opens the door for the users to use famous Bitcoin Blockchain. This Blockchain technology helps counterparty in broadcasting and publishing its messages.

What is XCP ?

XCP is a native token of Counterparty. XCP is a technical requirement for adding advanced features to Counterparty. This technology requires a protocol-aware currency. As it works on Bitcoin Blockchain and Bitcoin can only be aware of BTC but Counterparty can aware of BTC as well as XCP itself.

XCP was launched in a process called ‘proof-of-burn’ that was there from 2nd January from 3rd February 2014. During this period of time, anyone was able to exchange Bitcoins for XCP automatically under a protocol with certain conditions.

  • Users sent their BTC to a verified unspendable Bitcoin address with unknown private keys. (
  • Each BTC was automatically exchanged for a number XCP amounting between 1000 to 1500
  • Reward bonus decreased liberally with the block index.
  • Each address was limited to 1 BTC.

XCP is nothing without Bitcoin. So it’s not like that XCP will give competition to Altcoins and Bitcoins. The amount and supply of XCP are fixed. XCP cannot be created more and it is decreasing because of fees being burned. XCP is the most important part of smart contracts.

This is the most easy-to-trade token and represented by almost all exchanges that support counterparty. XCP is also used as anti-spam fees in the registration process of named tokens.

How Do Counterparty and XCP works?

Counterparty (XCP) Cryptocurrency : Future, comparison, Review, Invest, Blockchain?

  • XCP transactions are Basically Bitcoin transactions, as it works on Bitcoin Blockchain.
  • This operation is done with an extra number of planted data.
  • This extra planted data can be rectified by Counterparty’s clients only.
  • When XCP transactions are done the fees are charged in Bitcoins as Bitcoin Blockchain verifies the transaction and attach it with XCP.
  • Confirmation of order is only done when miners mine the bitcoin transaction fee. After this counterparty is send from one place to other. 
  • Counterparty (XCP) nodes are built in this way that they can read both BTC and XCP.
  • Counterparty (XCP) uses these nodes to maintain its own Ledger for XCP transactions.

Features of Counterparty (XCP) Cryptocurrency 

  • Counterparty (XCP) is an open source platform with a wide range of options with respect to the user.
  • It consolidates blockchain technology.
  • So because of this, it represents many features to the user.
  • It uses characterized Counterparty token, acts as a protocol’s cryptocurrency as features.
  • Unlike other Blockchain technology, Counterparty is also a decentralized platform.
  • Counterparty protocol comes with an asset exchange feature called “DEX”.
  • “DEX” helps to save user’s costs, time, and the need to rely on third parties.
  • Counterparty (XCP) supports multi-signature addresses and provides security and trust to complete multi-signature transactions.
  • Signatures must be provided by from multiple Bitcoin private keys.

Market cap of Counterparty and Total XCP supply

The present supply of Counterparty (XCP) tokens is over 2.6 million with the price of one unit of XCP is $28.31

This makes a market cap of $74 million.

The process is start with sending 2,130 BTCs to address which can’t spend this amount. This whole process is known as “proof-of-burn” process. After this everyone get their XCP according to investment in BTCs. 

In the initial stage, XCP supply was 2.65 million tokens. Now 2.62 million tokens are available.

We can not create XCP more but they are burning in high rate.  XCP is the most important part of smart contracts. XCP is used for smart contract running process. Most amount of XCP us burned in this process. Which is not affordable. This is leading to the continuous decrease in the amount of XCP

How to Buy and Store Counterparty (XCP) ?

Counterparty (XCP) Cryptocurrency : Future, comparison, Review, Invest, Blockchain?

  • Else you can use your regular BTC paper wallet to store your XCP on it.

PROS and CONS of Counterparty (XCP) Cryptocurrency


  • Important features like reserves, initial margins, equity, and default funds backup for Counterparty (XCP) clearings.
  • Cash margin is low.
  • Providing multilateral screens.
  • Enhanced market transparency.
  • Multiple position exchange between two parties to reduce the balance sheet.
  • Payments exchange between two parties and transfers helps to achieve additional performance.


  • Not ideal for all types of market users.
  • The counterparty may tend to the shortage of capitals due to limited collateral assets.
  • Initial margin demanded by Counterparty is very high.
  • Financial assets such as credit instruments are not eligible for clearing in Counterparty.
  • Use of Counterparty (XCP) may reduce the scope of various payment methods across all products.

Counterparty (XCP) VS Ethereum

Counterparty and Ethereum both are having smart contracts.

                  counterparty                           Ethereum
Counterparty has a less popularity in the marketEthereum has more reputation in the cryptocurrency market
Counterparty doesn’t have its own smart contract.Ethereum has its own smart contract.
Counterparty works on Bitcoin’s Blockchain.Ethereum works on its own Blockchain.
The block time of Counterparty (XCP) is 10 minutes.The Blocktime of Ethereum is roughly 12-14 seconds.
Limited payment methods.More payment methods.


Counterparty (XCP) VS Bitcoin

                 Counterparty (XCP)                             Bitcoin
XCP transactions are done on the Bitcoin Blockchain.Bitcoin transactions are done on the Bitcoin Blockchain itself.
Transactions cannot be seen directly on the Bitcoin explorer.Transactions can be seen directly on the Bitcoin explorer.
XCP tokens use the Bitcoin addressesBTC use their own addresses.
Counterparty (XCP) custom tokens use the Bitcoin Infrastructure.Bitcoin has its own infrastructure.
XCP is comparatively less famous than Bitcoin.Bitcoin is the most famous and reputed Cryptocurrency in the digital market



Counterparty (XCP) Cryptocurrency has lots of limitations but they have also some good features. Counterparty (XCP) is a consistent upgrading platform. According to me, it’s worth giving a try. Backed up by Bitcoin Blockchain method it can be said that you can have rest in your mind with respect to your fund’s security. Every transaction, infrastructure is based on Bitcoin Blockchain formula.

So that’s it for Counterparty (XCP) Cryptocurrency review. I hope you like this, please share with your friends and family.

Also if you have any doubts regarding Counterparty (XCP) Cryptocurrency please let me know in the comment section.

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Mahesh Chaube

Hey, This is Mahesh Chaube, computer Engineer by Education and Crypto Blogger by Profession From Mumbai. Here at coinraja i write about money making and Reviews on Cryptocurrency Related Thing. I hope you are enjoying My post. cheers !!

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