How Popular is Counterparty?
Counterparty is the largest metacoin in the Bitcoin space, as measured by transaction volume. Counterparty is one of the fastest growing 2.0 platforms, and manages many of the most active user tokens online. In this video, shot from the "Swap Shop" in Fort Lauderdale, I discuss Counterparty, and all things Bitcoin.
What's up, Party People? Chris Derose here, Community Director of the Counterparty Foundation, and in today's video, I wanted to answer the question, "How popular is Counterparty?" So this is something I get asked on occasion. It's kind of a weird thing because obviously I'm very active in the Counterparty Foundation, so it's very popular in my circles. There's a couple of different ways to quantify how popular Counterparty is. A lot of people like to look at the Coin market cap and judge that as a relative measure of popularity. But I've never been fond of that method. It definitely means something for people, some kind of attestation, maybe, of market perception or something like that, the value of the XCP token.
But the XCP token isn't Counterparty, per se. It goes with it. It's a thing. It's worth noting. But it is not necessarily a good measurement of the popularity of our system, not least of which is the reason that you don't need XCP to do most things in Counterparty. So I prefer to look at the actual number of transactions.
I feel that's a really good measure of how popular Counterparty is, and in terms of transaction volume, we are far and above the most popular 2.0 platform. I think certainly in the metacoin space, we're at 80% of all transactions in the metacoin space. That means transactions peformed on the Bitcoin block chain, that we're Bitcoin related, per se, or at least directly Bitcoin-related per se. That was a nice metric for 2014. We have often hit 3% and 4% as our maximum number of the network transaction volume on the Bitcoin Network, meaning 3% to 4% of those transactions were Counterparty transactions.
So that's a wonderful metric. If you look at that number, it probably comes out to 3,000 or so on an average day, something like that. But, too, there's more metrics we can look at to see how popular Counterparty is. I like looking at the assets. I like looking at the asset declarations because those are themselves a great metric for what people are doing, what they're thinking of doing, what ideas they have. And in that sense, we've just hit a little bit over 10,000 asset name declarations on the Counterparty Network.
Now, of those 10,000, very few are actually being actively used, but it does show the amount of effort, the amount of energy and money that people are putting into Counterparty as an asset system, which it is a very successful one. I think that with Counterparty, it's almost like a foregone conclusion that Counterparty adds value. It's a little weird. With some of the other networks, people are really trying to pump money into the system to try to make it valuable. But it's often that I see that Counterparty is assumed to be a "go to," which is weird because you don't always see that the Coin market cap reflects that in the XCP value. But again, XCP value isn't necessarily that required in Counterparty, so maybe it's just understood that Counterparty adds value and that's that.
So "Very Popular" is what my answer would be by most metrics that matter, and maybe you disagree. Probably you disagree, if you're into some of these other alt coins. Why don't you tell me why in the comments below? Of if you have more questions, ask me @derosetech. I'd love to answer your questions, and if you liked this answer and want to hear some more, subscribe to my channel. Later, Party People.