Define Counterparty It can be a little complicated, especially for those who are new to the field of cryptocurrency, but this may not be because of the complexity that this platform may seem at first glance, but because of the multiple possibilities that it offers.
To begin to define it, you must first understand one thing: Counterparty works like Metacoin. But what is it? Well, basically, they are pieces of new code that are attached to blocks that will later be added to the Bitcoin network. This allows a number of new applications to emerge, such as smart contracts, or also personal tokens or tokens; which may or may not have value depending on their demand. They are cryptocurrencies, just like Bitcoin.
Among so many tokens, one that has gained fame recently is worth highlighting as an example: BitCrystal, a virtual currency used in role-playing games. Genesis Spell which is traded on Counterparty’s DEX (decentralized exchange market). and calm, If you are wondering how to create your own token, or buy BitCrystal or others, in this guide we will explain it to you.
Among these tokens there is one that is vital to the use of the wallet offered by the platform (necessary to access all its applications): XCP, Counterparty’s native cryptocurrency, which is traded on major stock markets. To acquire it, we are shown a list of decentralized markets that trade with her. An example of its use is that if we want to create a token with a custom name, we will have to pay 0.5 XCP.
Now that you’ve learned a bit of theory, it’s time to put it into practice. To get started with our portfolio, the first thing we need to do is go to the official portal The other party’s wallet, where we will create our personal wallet. Please note that this guide is for the web version, but from the official Counterparty portal You can download your mobile wallet or as a web extension: you just need to click on «Wallet«.
In our case, when entering we will be shown the following:
It should be noted that the Counterparty wallet is an online wallet. To use it, we will need an internet connection.
Here we can see that we are offered two options in official portfolios: lthe higher one refers to the fact that when you click, we create a real portfolio, that is, it is a wallet in which we will use real cryptocurrencies. Another option is the Testnet network, or testnet, where you can act as test portfolio, which will be unique and yours, in which you can pay some fictitious bitcoins to do some tests. We recommend that if you are new to the world of cryptocurrency technology, you start with the lower option and that way you don’t risk losing your valuable savings in failed tests that you might do.
After selecting any of the two options, the following window will appear.
Main screen for creating or opening a wallet
This is the main screen for creating a new wallet or restoring an existing one. As in our case we want to create a new one, we will click on «Create a new wallet«, to which we will be shown next.
These words must be stored in the same order in which they were generated. Saving to physical media is recommended.
Like any good portfolio, the first thing they will do is generate ours 12 words of support. This will allow us to return the wallet later. It must be taken into account that, if we are talking about real money (in the case of a real wallet), it is highly recommended These words are stored on physical media, such as writing them down on paper; This will prevent them from being stolen in the event of a hack to where we have them digitally stored.
In the previous image, we could see the 12 underlined keywords at the top. These twelve words must be stored in the same order in which they were generated. If in a certain case the generated words are not to our liking, we can click on the update icon on the right side of the frame so that ten more new words are generated.
In the central part, we find a warning that tells us that Counterparty does not store the created words in its database, that is, that we will be the only owners of them, which is why They must be looked after very jealously. It also warns us that if we lose our words, we will lose access to our wallet.
To continue, we’ll click on the checkbox below, which asks if we’ve already saved our words in a safe place. Later we will click on «Continue«, which will show us next.
On this screen, Counterparty presents us with an interesting option. As we mentioned at the beginning, when starting in Counterparty we find a screen to create or restore a wallet through 12 words, this would be mandatory every time you want to open a wallet, but Counterparty has a small solution so that you do not consult our 12 words in every moment. The platform will create an encrypted connection for us, which can only be opened if we enter the password that we will assign. To generate the link, we will click on «Create a URL for quick access«, with which we will access the following interface:
The link will be unique and vary depending on the key, you must copy it before proceeding.
Here we will have to enter the password at the top, and in the lower field a link will be generated that, when opened, will allow us to enter the password instead of our 12 words. After we have copied the link, we will click on «Create a wallet» to finish creating our portfolio.
The next step is to open our wallet. When you finish creating, we will be left with the same screen as at the beginning of its creation. The only difference is whether you have generated the link or not, because if you have, the box below will say: «Enter your password for quick access» so we can enter the password. Otherwise they will tell us «Enter your 12-word passphrase» so we can put our safe words. We must remember that in order to enter only the password, we must open the link that was generated for us.
After we have already chosen the desired method and entered the password or security words, we will click on «Open Wallet«. On first login we will have to accept its terms and conditions and our wallet will open ready to use.
Getting started with the Counterparty wallet
After we have already created our portfolio and launched it, we will be presented with the following screen.
Home screen of the other party’s wallet
First let’s understand what we see.
On the left is the Main Menu. There we can move between options like «Mine Balances«, where we can see our portfolios as well as the funds at our disposal. We can also enter the stock market in the section «Market«, which we will discuss later.
On the right side, at startup, we will find the section «My Balances«. This section is the backbone of the wallet, as it is where we are when sending and receiving funds. In the upper right part of the screen we find a menu where we can create other addresses in «Create a new address», and accumulate individual balances at each address. To create a new one, we just have to select the option «Create a regular address«. There they will ask us to enter a name, and that’s it, now we have a new address.
On the other hand, we find the option «Import means«. This allows us to import funds from another wallet into Counterwallet, just by entering 12 keywords.
In the middle part are our addresses along with the amount of BTC and XCP we own.
To begin with we need to get the funds, and to do that we need to get the address to which the funds will be sent. This address can be found very easily, we just have to select the option «My Balances» from the side menu and it will appear as shown in the following image:
This address will be unique for each wallet we decide to create
When you send another wallet to this address, just wait for the transaction to be confirmed and that’s it, we will have the funds available.
Now for send funds from this address The steps are simple. The first thing we need to do is open the send screen, and to do that we will not go to the wallet from which we want to do it and we will click on the following icon.
When you do that, a drop down menu will appear and we’ll choose «Send«, which will open the next window.
Form for sending funds
Here we must take into account the following aspects: in the first box we must put the address of the wallet to which we will send the funds, in the second the amount to be sent, and in the third we must choose the priority of sending. The higher the priority, the faster the transaction will be confirmed, but the rate paid to miners will be higher.
After we have filled everything, we will click on «Send» and we will wait for the transaction to be confirmed. In the top menu, we can see the status of completed transactions, as shown below.
Notifications marked with a clock symbol mean they are waiting for confirmation
Well, for now we already have funds, but in bitcoins, and we need XCP. As we mentioned at the beginning, Counterparty refers us to list markets where this cryptocurrency is traded. Previously, the other party had the option to «Burn it«, that is, burning bitcoins to get XCP, given the fact that this token works directly on the Bitcoin blockchain. In 2014, about 2,100 BTC were burned, making more or less the 2.6 million XCP currently available. This option is still enabled in the Testnet wallet.
We remember that you will only need 0.5 XCP to create a token name, so there is no need to buy a large amount if you don’t want to.
Since you already bought XCP, that’s it! We have our own account with funds ready to create our own token.
Token creation with Counterparty
We already have funds in our wallet, we can start creating our own token. To do that we have to click on the menu «Shop address«, which is next to the address of our portfolio. There we will click on «Create a token (asset)«, to which we will be shown next.
Our token creation form
Here’s what we need to do here:
- In the first field, the address of the wallet in which the token will be created is automatically set; this cannot be edited.
- Next we will find two options, which refer to whether we want to create a token with a numerical name, which is free to create, or an alphabetical one, which will be unique and implies a creation cost of 0.5 XCP.
- In the box “The name of the token“As this indicates, we need to give our token a name. If in alphabetical order, the name must be no more than 12 characters, no less than 4, no special characters or lowercase letters. Filling in this field is mandatory.
- In the next field, «Description«, we can set any more information we deem necessary about our token, although this option is optional. However, for some tokens it may be important, as in the case of Rarepepe, because the drawing URL of the asset created will be placed here.
- About the box «Quantity» We need to enter the initial amount that we will create from our token. This amount can be increased later, as well as be permanently blocked, so that no more units of this token are generated. Decimal numbers can be entered in this field, as long as the bottom option is «Make it shareable» is enabled.
- Option “Make it shareable» allows our token to be split into a total of 8 decimal places, just like what happens with bitcoins.
- in “Bitcoin fee» We will say what will be the priority regarding the transactions of our token. We generally leave this option to «Normal«.
When you’re done you should have something like this:
This way we have to fill out our form to create the token we want
After confirming all the data, we will click on «Create a token«. This will not appear immediately, as we have to wait for its creation to be confirmed on the blockchain. Once this is done, it will appear in our portfolio as we can see below.
Once validated, our token will appear in the “My Balances” menu.
As the image shows, we only have 1000 units of our token, which is what we originally created, but this can be increased. To achieve this we must click on the dropdown menu of our token and select «Additional edition» where a box will appear in which we will place the additional number of units. Remember that if our token is divisible, we can add decimal quantities. We accept, wait for confirmation and that’s it, we will have our new quantity available.
We also find an option for limit the number of tokens, this means that no more units of this can be created. But be careful, because This option is permanent. To do this, we will have to open the dropdown menu of our token and select «Issuing lock tokens«. A warning will appear here that this option cannot be undone, we will click on the lock token and that’s it, the units of our token are limited.
Marketing our token to other parties
After our token is created, the next step is to publish it on a decentralized exchange market (DEX) so that other people can acquire it. To begin with, we need to go to the side menu option “Exchange” and then we’ll click on “Market“, which will show us next.
The main screen of the stock market
This is the main screen where we can see the different tokens offered here. At the top are the tokens with the most movement in the market, while below we find a complete list of all that are currently released.
Here we need to create a publication to buy or sell, and to do that we’ll go to the top and write the name of the token we want to exchange. Then we will choose if we want to exchange it for XCP, as shown in the following image.
Here you can post the token you decide to sell, or the one you want to ask to buy, it’s up to you. You only have to set aside the means with which you are ready to pay.
Something to keep in mind is that our token can not only be exchanged for XCP, but also for another personal token. All we have to do is select the option “Other” and a text box will open in which we will enter the name of the token we want to exchange it for.
After you enter the name of the token we’re going to publish, we’ll scroll down a bit and see the following.
Forms to buy or sell tokens
On the left is the purchase request form and on the right is the sales form. If we take a closer look, we will realize that the forms are practically the same in terms of the required data.
First of all, we find the portfolio from which we want to buy or sell at the top of each form. In the case of a sale, we can only choose one, which is the one that contains the token. In case we have more than one token at different addresses, we could choose any of these.
At the bottom of the portfolio selection option, we find the balance of our assets, whether for sale or purchase, as well as as well as the lowest or highest price of the last executed transaction, depending on whether it is a purchase or a sale. Below we will see the amount we can buy or sell according to our available funds. In the box “Price“We have to enter the amount we want to charge or pay for each token unit. Later, in “Amount“We will enter the amount we want to sell or buy, keeping in mind that these units can be expressed in decimal numbers, as long as the token allows.
At the end, the total profit or cost for the transaction will be displayed. Recall that we are doing a transaction request, that is, for example, if we want to make a purchase, and no seller offers tokens at the price we set in our order, the transaction will remain open until the system automatically finds a sale request that covers our requirements .
To finish, just click the “Buy” about “Sell” in which a box will appear asking us to confirm the order. We will click confirm and that’s it, our order will be published on the DEX.
If in your case you want to buy a specific tokenyou just need to write in the same box where we put the name of our token, the name of the one you are looking for, choose which material to exchange it for and follow the same steps we mentioned above.
To better illustrate this, we can make a sell transaction and a buy transaction of our two different wallets, one holding the token we created and the other not. When we do that, we go to the balance sheets and we will be shown the following.
If we notice that in the above wallet the token appears blue, this indicates that the token is managed as just another currency, although it cannot be edited as the wallet from which this token was born can work, which allows it to create more units, as long as they are not blocked.
On the other hand, if we want to see the release of our token to the market, we can go to “Exchange” and select “Open orders“. There we can look at all the orders we have currently posted and if we like them, cancel them. Each order takes approximately 15 days; after this period, The order expires and is automatically cancelled.
Pay dividends to token holders
Counterparty’s somewhat special option is to pay any asset we own, be it Bitcoin, XCP or any other asset, to people who own a certain token, regardless of whether we ourselves have it in our wallet or not. To do this we need to display the menu «Address Actions» located next to our address and select the option «Pay distribution«. This will open the following window.
In this form we must consider the following:
- In the first field, we must write the name of the token to which we want to make the payment. We remember that it doesn’t matter if we own this token or not.
- In the second field we have to choose what we want to pay with, whether with Bitcoin or any other token.
- In the last field we have to enter the amount of money we will pay for each existing token unit. We must take into account that, depending on the number we enter, it will be multiplied by the existing token units,
- At the bottom, we will see the total amount to be paid, as well as the rest of the assets that will remain in our portfolio.
- It’s worth noting that it takes 0.0004 XCP to pay for the distribution, but don’t get confused, this price is total for the entire distribution, not for each token unit.
When everything is done, we will click on «Pay Distribution“Hopefully it’s confirmed and that’s it.
Counterparty is a platform that, more than in development, is in full expansion. Recently, for example, they conducted tests for the integration of Ethereum smart contracts and its Solidity programming language. This would take Counterparty’s reach far beyond simple tokens.
And the truth is that Counterparty is becoming more and more popular in the cryptocurrency world, either thanks to tools like Spell of Genesis or RarePepe, which have increased in popularity, or various other applications that have adapted to Counterparty as a base for their business. Either way, Counterparty is here to stay, so trying it out has become almost a must for cryptocurrency and blockchain enthusiasts.