BTC to XCP is like TCP/IP to HTTP
1) HTTP was built on top of the TCP/IP protocol Counterparty was built on top of bitcoin network/protocol
2) http uses TCP/IP as the transport layer to transfer information counterparty uses the bitcoin network as transport layer to transfer information.
Actually the value in counterparty are a kind of information. The value in any blockchain is a kind of information that include UXTOs, tx hash, digital signatures.
3) HTTP does not necessarily need to be on TCP/IP. And theoretically, it can be built on top of UDP
Counterparty does not necessarily need to be on bitcoin network. It can switch to whatever other blockchain, e.g Litecoin / Dash / Doge / Bytecoin through proof of burn. That is, you burn your XCP, and you will receive proportional amt of xcp in the new network Any financial assets on counterparty can be transferred to another blockchain as well
4) TCP/IP's value is only in its functionality to transfer data, nothing else TCP/IP consumes band width which is a major resource in the global communication network HTTP's value depends on the amount of web appllications that will ever be built to faciliate real world businesses
Bitcoin's value can only represent the utility of a global cryptographic ledger, nothing else XCP transactions consume bitcoin which represent the resource of a global secure ledger. Bitcoin's value is from hashing power, electricity, band width and etc XCP's value depends on the amount of financial assets that will live on it and the amount of escrow that is needed for financial transaction on counterparty network and else
5) http positively affect the usage/value of TCP/IP. More apps that make http calls, more usage of TCP/IP
counterparty positively affect the usage of bitcoin network and BTC value. More smart contracts on counterparty, more transactions on bitcoin network, more demand of bitcoin
6) it is not feasible to build web apps directly on tcp/ip the transport layer, you have to build them on HTTP
it is not feasible to build smart contract, financial settlement directly on bitcoin network, you have to build in on counterparty complex system are always in the hierarchical structure. In that sense, ethereum, rootstock both won't work
finally, bitcoin is the transport layer and counterparty is the application layer for a decentralized financial system
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