Counterparty definition is a project that aims to expand Bitcoin functionality by including new operations on top of regular Bitcoin transactions. Counterparty protocol is open-sourced and allows users to create new digital tokens and establish smart contract that are performed within the Bitcoin blockchain. Counterparty provides users with built-in scripting language to write their own protocols and programs. Counterparty has its own coin (XCP) that is used to pay for the performance of smart contracts and is implemented in the voting system of the counterparty community. Counterparty tries to eliminate the risks of using cryptocurrency with their own crypto wallet, which never stores private keys on servers, encrypts all information sent to them and erases every session’s information after the users log out.
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