Why did Overstock choose Counterparty?
What was behind the biggest decision in crypto-equity, and how did Counterparty come to be the most important technology in the 2.0 space? In this video, I ...
What's up, party people? Chris DeRose, Community Director of the Counterparty Foundation, here in Vizcaya, in downtown Miami talking to you today about all things Counterparty, as usual. But right now, I want to discuss, why did Overstock choose Counterparty with which to list their stock? It's a great question. Let's explore it. But before we begin, let me be very clear that this is not the official position of Overstock. This is not the official opinion of Patrick Byrne. This is just my own official opinion.
There's no greater attestation going on here. So I'm going to speculate a little bit, and I'm going to tell it to you the way I see it, and the way I think it to be. And it may be wrong. So you have to understand the time prior to the Overstock announcement. In roughly, I think, October or so or even September, there was a lot of ruminations about Overstock choosing a 2.0 platform with which to list their company's stock.
I believe that what was happening at the time, and certainly it would be supported from the Overstock website, was that they were looking into various platforms. They produced a lot of literature about the pros and cons of different implementations. And at some point, I think that Patrick Byrne and his advisers were sitting there at a table, and they finally had to make their decision. So they sat and they looked and seemingly, according to the rumors, it was primarily between BitShares and Counterparty seemingly. There're certainly others that they investigated. The theory hasn't been out yet and wasn't out at the time nor do I even think that would've been a good choice for them.
And MasterCoin probably was really not getting much steam. Colored coin is a whole other topic I'd like to do for another episode. But when they look at particularly the BitShares versus the Counterparty approach, there's a handful of things. First and foremost with BitShares, there's a lot of the criticism that we've heard about their BitX asset, which you can look into. I think Preston Byrne himself has done, not Patrick Byrne, Preston Byrne, has done a lot of good writing on the matter, what that might be. I think that that must've been a really major problem that they probably had with it at Overstock.
But also, BitShares is proof of share base and not proof of work base. So I think that that probably was a big discouraging factor. I say that too because of the way the Blockchains were. We talked about that a lot in this Channel. For Overstock to choose BitShares, they would have to rely on the chain working in the long term, and the chain hasn't been around that while. There isn't much energy going into it, and there's really nothing at stake in the P.
O.S. chain. So I think that using the Bitcoin chain must've added a lot of faith to the decision that they were making, because they saw that all this energy was going into securing it, and it's been around for six years. It's a very hard thing to change. There's a lot of investment that goes into it.
And so they felt secure in leaving their data there, and leaving their cryptographic asset there. And I think that had a lot to do with the decision. But then I know too that at some point, the founders of these technologies were interviewed by Overstock in one capacity or another. And I think that Patrick Byrne, he said this, he has put a lot of faith in the competency of the Counterparty team. And I certainly feel that way myself. If you look at some of the writings, and again this is my own personal opinion, the founders Robby, Evan and Adam are very humble people.
They're not full of a lot of loud and boisterous commentary. They're very straightforward. They're very pragmatic. And they've achieved a lot. They've sat down in very little time and they've done what it is they set out to do. And they didn't waste time with a bunch of pronouncements, and declarations, and papers, and on and on.
So I think that Overstock really appreciated that about the Counterparty team as well. So I think that when they were looking at the leadership behind these platforms, that must've been a factor as well that contributed to their selection. That's the best that I could come up with. What are your thoughts? Do you have an opinion? Did I miss something? Did I not forget something that is important to you? Let me know. Do you have any questions? Add them to the bottom of the screen or tweet me. My Twitter handle is @DeRoseTech and my email address is chris@chrisderose.
com. And if you'd liked this video, and you want to hear more about Counterparty and Bitcoin, subscribe to the channel. I'd love to have you around. Thanks, party people.