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Why the name Counterparty?

Why the name Counterparty?

Transcription

What's up party people? Chris DeRose here, Community Director of the Counterparty Foundation. Today I wanted to answer a question that a couple of you have asked me, 'Why the name Counterparty?' It's a good question. It's a very easy question to answer, fortunately. The sum of it is this, the Counterpary protocol provides for its users the function of a counterparty agent. If you don't know what a counterparty agent is, that's a little bit more nuanced question to answer. A counterparty agent has typically been, in financial terms, either an attorney, a lawyer perhaps, that might hold money in escrow, who takes money between two parties and holds it for the duration of a contract and then executes the distribution of that money thereafter.

That's a very typical function for a counterparty agent. In addition, there is that of the clearing house. A clearing house is something such as New York Stock Exchange or the Chicago Mercantile Exchange. These are companies where goods and products are exchanged between users for the duration of that contract execution. A third party is awarded the financial sum and perhaps even the asset being exchanged for the purposes of term negotiation and such. That's the gist of what a counterparty agent is, and that's where the counterparty term comes from.

It facilitates these transactions in a decentralized capacity using the Bitcoin network and using the Bitcoin block chain. That's the gist of it. It's not too bad. We'll see how the network transpires from here and what we see built upon a counterparty. Certainly we believe smart contracts to be a huge opportunity for us in the counterparty world, and certainly the Distributor Exchange is a huge opportunity. There's more coming.

That's the gist of it today. Thanks for tuning into my channel. As usual, if you have a question, you can ask me, chris@chrisderose.com, on my e-mail. On Twitter, derosetech is my handle. Subscribe to our channel if you like these videos.

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