Again, congrats. on today's big move towards adaption. I believe that we need to pickup marketing after a period of debugging.
In order to pickup marketing and in order for all of us to "spread the word", and attract XCP investment as well as CP platform usage I believe that we need to have the best clarity, on details beyond the obvious value that a decentralized platform provides.
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Thus, Back to "business model"questions:
I read the LTB coin plan with great interest and I can indeed see a great potential in what they are trying to do there.
I will use this as an example to ask several questions to our devs, Matt or any other visionaries here that would like to answer:
Since LTB coin (and any other such future asset) will be built off the CP platform and is an asset:
1) there will be 510M coins and promotions etc etc. how many actual assets will be issued that will require 0.5xcps? (one time and done? every promotion?)
2) I can see that the LTB vision, as well as the B TangibleAssets vision, as well as all other assets in the future, can create great value to their shareholders. However,
a) what drives XCP's value in real economic terms? what drives CP's value?
b) can we actually have LTB's with a market cap of say 50M and CP with 10M? I believe that it is possible. so how will we generate value to our XCPs when we dont have shares in CP (XCPs ARE our shares).
3) Will all transaction fees incurred from various activities around CP actually go to BTC miners? or are there DEX fees that will stay within the CP eco-system (hence realizing that it is a vertical system within the BTC ecosystem as we tried to display to the BTC devs)
Thanks for thoughtful orderly answers.
I posted it yesterday. received one reply. don't you guys want to understand the value proposition for XCP? (again not counterparty the platform but XCP the token or currency.
Anyways- good conversation in REDDIT about it initiated by another person (not me) with some good answers: will appreciate more feedback here.
here it is:
Where does the XCP currency come into play? I'm generally skeptical of any kind of decentralized exchange that creates a new token-based system. Why not just trade newly created assets directly against bitcoins instead of creating a new currency?
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[–]PacificAvenue 2 points 1 day ago*
x-posting this from ELI5 thread
You can buy stocks with pure BTC reserves on Counterparty. You can exchange BTC for XGOLD, and XGOLD back for BTC. Counterparty the token (XCP) is required for asset issuance but not asset exchange.
With colored coins, you can transform BTC into BTC-GOLD, but the original issuer of BTC-GOLD must sacrifice BTC up front to issue BTC-GOLD. Because you wouldn't want to accidentally send someone your 10 gold bars irreversibly, colored coins and BTC must be tracked separately. This is important. BTC-GOLD must be distinguished from BTC in all colored coin enabled wallets.
With Counterparty, you can exchange BTC for XGOLD, and XGOLD back for BTC. Similar to colored coins, the original issuer of XGOLD must sacrifice BTC to create XGOLD. The beauty of Counterparty is that, once the XGOLD is circulating, you can bet or hedge on its future value with distributed price feeds, with or without leverage, and with or without owning the underlying asset. Counterparty is like a colored coin stock market, prediction market and options market all-in-one, and it's completely decentralized.
In addition, Counterparty addresses are Bitcoin addresses, literally they are one and the same. But if you accidentally send away the BTC aspect of a Counterparty-enabled Bitcoin address, the Counterparty asset remains untouched. In Counterparty, the colored coin gets fixed to the Bitcoin private key, and a distributed ledger of its own tracks the balance. Counterparty assets aren't at risk of being accidentally sent. As a result, you can seamlessly overlay Counterparty on top of existing Bitcoin wallets.
To me, that is the key, and it's why I'd compare colored coins to a bare bones version of Counterparty. You can buy colored assets on Counterparty directly with Bitcoin just like you can with a minimal colored coins implementation, but Counterparty interoperates with all existing Bitcoin wallets, and you can do a whole lot more with it once you have it. Think: futures, options, predictions, and trading with leverage.
[–]kyletorpey 1 point 1 day ago
Colored coins based on price feeds are also possible on Colored Coins (I've asked them about this after Mastercoin started talking about price feeds), so perhaps I'm still missing the need for the XCP currency? I do like the ability to trade directly between BTC and Counterparty-assets, but I still don't see why a new currency is required.
[–]AdamBLevine 2 points 1 day ago
Because colored coins requires specific satoshis or groups of satoshis to be marked, where Counterparty just uses the satoshis as essentially a change-order for the Counterparty global ledger.
Colored Coins can do stuff with Bitcoin but they can't control bitcoin, because Colored Coins are a protocol layer above Bitcoin. When you do a decentralized exchange transaction on Counterparty, if you're using XCP or any user created asset, everything is automated because the protocol can control both assets and make the change to the Counterparty ledger at the same time.
With Bitcoin that can't happen because the Bitcoin ledger needs to be changed to reflect the Bitcoin side of the trade, and the Counterparty ledger needs to be changed to reflect the counterparty side of the trade. Because these things happen in different systems it means one can happen but the other does not for whatever reason.
Using XBTC (a Counterparty Asset redeemable through an automated or trusted source for BTC) you can have all the advantages of automatic fulfillment without risk the other side cancels the TX but your side goes through.
Nothing wrong with the colored coins approach but Counterparty is different and in my opinion a superior option.
http://www.reddit.com/r/Bitcoin/comments/22erxg/counterwallet/?sort=new
