Counterparty makes Ethereum features available for Bitcoin blockchain, to enable users to create their own smart contracts
Counterparty has announced that it has recreated Ethereum's smart contract capabilities for the Bitcoin Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term, which will allow future users to securely write their own contracts.
The project, in essence, brings together the strengths of each of the three technologies together to make up for each others' deficiencies.
The announcement emphasizes the "preeminence" of Bitcoin and its blockchain as the "host chain" for consolidating all the features of the cryptocurrency world. Among Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term, Bitcoin is by far the most secure, as reflected by its valuation. It commands 90% of the combined market cap of all cryptocurrencies. The several hundred alternative currencies and protocols, in contrast, have seen relatively little adoption and can be often be successfully attacked at a low cost.
However, Bitcoin on its own does not have smart contract capabilities.
Counterparty is used to create smart contracts on this blockchain, but until now, these would have to be manually hard-coded by core developers each time.
That's where Ethereum comes in. It "is a project to create a novel blockchain in addition to a programming language and virtual machine for the creation of smart contracts." On its own, however, it would have to "reinvent the wheel" in creating its own blockchain. This would be risky and time consuming.
It makes more sense to build upon the solid foundation of Bitcoin's robust blockchain. With the new Counterparty Contracts, users leverage Ethereum's language to create their own contracts and have them executed on Counterparty nodes.
The project aligned Counterparty's contract language with that of Ethereum, which also makes the system more secure. Also, every Bitcoin address is also a valid Counterparty address. Thus, according to the blog post, "this innovation will also be a great boon for Bitcoin, which will become a more complete ecosystem with its release.
The project is the likely cause behind the recent significant rise in Counterparty's currency, XCP.
Counterparty has announced that it has recreated Ethereum's smart contract capabilities for the Bitcoin Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term, which will allow future users to securely write their own contracts.
The project, in essence, brings together the strengths of each of the three technologies together to make up for each others' deficiencies.
The announcement emphasizes the "preeminence" of Bitcoin and its blockchain as the "host chain" for consolidating all the features of the cryptocurrency world. Among Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term, Bitcoin is by far the most secure, as reflected by its valuation. It commands 90% of the combined market cap of all cryptocurrencies. The several hundred alternative currencies and protocols, in contrast, have seen relatively little adoption and can be often be successfully attacked at a low cost.
However, Bitcoin on its own does not have smart contract capabilities.
Counterparty is used to create smart contracts on this blockchain, but until now, these would have to be manually hard-coded by core developers each time.
That's where Ethereum comes in. It "is a project to create a novel blockchain in addition to a programming language and virtual machine for the creation of smart contracts." On its own, however, it would have to "reinvent the wheel" in creating its own blockchain. This would be risky and time consuming.
It makes more sense to build upon the solid foundation of Bitcoin's robust blockchain. With the new Counterparty Contracts, users leverage Ethereum's language to create their own contracts and have them executed on Counterparty nodes.
The project aligned Counterparty's contract language with that of Ethereum, which also makes the system more secure. Also, every Bitcoin address is also a valid Counterparty address. Thus, according to the blog post, "this innovation will also be a great boon for Bitcoin, which will become a more complete ecosystem with its release.
The project is the likely cause behind the recent significant rise in Counterparty's currency, XCP.