see #21 for overview of how this info will be shown
Why do I need small amounts of Bitcoin to use Counterparty?
Counterparty builds directly on top of the Bitcoin network, and every Counterparty transaction is a Bitcoin transaction as well.
This means that Counterparty transactions are the same as Bitcoin transactions, with some information attached through the OP_RETURN function.
Adam Krellenstein, co-founder of Counterparty, wrote about this functionality and labelled Counterparty as a 'metaprotocol' in the Counterparty Whitepaper titled "Counterparty An Extension to Bitcoin by State-Machine Replication".
Because of this, Counterparty transactions using any Counterparty wallet MUST pay a small BTC fee to the Bitcoin miners for each Counterparty transaction. Beyond being a sign of commitment to the health of the Bitcoin network, this allows Counterparty transactions to be given a high priority and be confirmed quickly while maintaining the same security that Bitcoin has.
What does a Bitcoin transaction with Counterparty data look like?
Every Counterparty transaction is a bitcoin transaction with more information encoded into the OP_RETURN function. Many internal Counterparty transactions such as asset creation, issuance change, token locking etc. are transactions “sent to yourself” with this Counterparty information on layered on top of it.
Below is an example of a Counterparty transaction with OP_RETURN data attached (representing a named token creation transaction).
Notice how the receive Bitcoin / Counterparty address is the same as the sender in this specific example. Also notice the extra 'OP_RETURN' information added.
Below is the detailed OP_RETURN data can be seen on Counterparty Block Explorers (Tokenscan is used in this example), while all 'BTC only' transactions can be viewed on a BTC block explorer.
Take note this is the same 'transaction ID' as the screenshot before but the 'OP_RETURN' information has been decoded to show you the Counterparty action in great detail.
For more information on what a Counterparty Block Explorer can show for Counterparty information. Check out the What is a Counterparty Block Explorer? page to learn more.
see #21 for overview of how this info will be shown
Why do I need small amounts of Bitcoin to use Counterparty?
Counterparty builds directly on top of the Bitcoin network, and every Counterparty transaction is a Bitcoin transaction as well.
This means that Counterparty transactions are the same as Bitcoin transactions, with some information attached through the OP_RETURN function.
Adam Krellenstein, co-founder of Counterparty, wrote about this functionality and labelled Counterparty as a 'metaprotocol' in the Counterparty Whitepaper titled "Counterparty An Extension to Bitcoin by State-Machine Replication".
Because of this, Counterparty transactions using any Counterparty wallet MUST pay a small BTC fee to the Bitcoin miners for each Counterparty transaction. Beyond being a sign of commitment to the health of the Bitcoin network, this allows Counterparty transactions to be given a high priority and be confirmed quickly while maintaining the same security that Bitcoin has.
What does a Bitcoin transaction with Counterparty data look like?
Every Counterparty transaction is a bitcoin transaction with more information encoded into the OP_RETURN function. Many internal Counterparty transactions such as asset creation, issuance change, token locking etc. are transactions “sent to yourself” with this Counterparty information on layered on top of it.
Below is an example of a Counterparty transaction with OP_RETURN data attached (representing a named token creation transaction).
Notice how the receive Bitcoin / Counterparty address is the same as the sender in this specific example. Also notice the extra 'OP_RETURN' information added.
Below is the detailed OP_RETURN data can be seen on Counterparty Block Explorers (Tokenscan is used in this example), while all 'BTC only' transactions can be viewed on a BTC block explorer.
Take note this is the same 'transaction ID' as the screenshot before but the 'OP_RETURN' information has been decoded to show you the Counterparty action in great detail.
For more information on what a Counterparty Block Explorer can show for Counterparty information. Check out the What is a Counterparty Block Explorer? page to learn more.