About Counterparty and Bitcoin-based NFTs
Non-fungible tokens (NFTs) are proof of ownership of digital assets, typically created on platforms such as Ethereum, but there are also Bitcoin-based NFTs. One such is Counterparty, which uses Bitcoin technology to provide verifiable proof of ownership of digital assets, such as digital art and collectibles.
What is Counterparty?
Counterparty is a protocol founded in 2014 by Robert Dermody, Adam Krellenstein, and Evan Wagner that is built on the Bitcoin network and allows users to issue, buy, and sell unique digital assets The launch of Counterparty was a turning point in making people realize that Bitcoin is not just an alternative currency or store of value, but can be applied to any asset or transaction.
Counterparty set the stage for the global cryptoart and collectibles movement through projects such as Spells of Genesis in 2015 and Rare Pepes in 2016. These projects are considered the forerunners of the modern NFT boom.
How does Counterparty work?
Counterparty provides the infrastructure that defines how to create unique tokens on the Bitcoin blockchain. These assets are not limited to digital collectibles or tokens, but can be anything with provable scarcity.Counterparty is Bitcoin native and can embed and use data from the Bitcoin protocol, so that on the platform transactions look the same as when using BTC.
However, there is a notable difference between Bitcoin and Counterparty in terms of node relationships: unlike Bitcoin nodes, Counterparty nodes do not communicate with each other and do not provide a “peer-to-peer network. All nodes share the same code and receive the same transaction data, but the primary role of the Counterparty node is to connect to the Bitcoin software.
Other features of Counterparty
In addition to supporting unique assets, Counterparty offers a variety of additional features. These include
– Multisignature addresses: refers to situations where two or more individuals (through their respective private keys) authorize a transaction and sign it before execution. With Counterparty’s support for Multisig, users enjoy stronger security and comprehensive utilities.
– Governance and voting: Users can also create and vote for Counterparty tokens.
– Dividends and distribution: When a company issues Counterparty tokens, it can distribute profits and dividends to token holders.
The above is basic information on how to create and obtain NFTs in Bitcoin through Counterparty. It will be interesting to see how this technology evolves and how the world of NFTs and blockchain develops.
※Reference URL:What Is Counterparty? Historical NFTs Built on Bitcoin
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