Counterparty and Dogeparty are similar protocols built on top of Bitcoin and Dogecoin blockchains, the function of which is to allow any individual user to issue his own store of value or token. The two function basically the same, and any amount of the parent currency can encompass the total value of the shares in a generated asset.
Already used by…
They have been used increasingly in recent projects, with the Spells of Genesis game perhaps making the most novel contribution in the form of trading card assets represented on the Counterparty protocol. They also have a more currency-like token called BitCrystals, which are meant to fund development and are also issued on Counterparty.
Another great example of an implementation of Counter/Dogeparty assets is the FoldingCoin project, which rewards users financially for contributing to protein folding research. The token (FLDC) was created to incentivize those who compute on non-profit distributed computing platforms to encourage continued support. And then there is the popular LTBCoin token offered by the Let's Talk Bitcoin Network, which incentivizes listener participation as well as community contributions.
Currency vending machine
The platforms may be easy to understand, but asset distribution and funding can become an issue, which is where CoinDaddy comes in. The startup has developed its own digital vending machine which enables anyone to easily sell their Dogeparty or Counterparty asset for major cryptocurrencies like Bitcoin, Litecoin, Dogecoin, as well as, other assets on either blockchain.
This new vending functionality is ideal for crowdfunding projects, similar to Storj (SJCX). Using CoinDaddy’s service, a user can register a MYPROJECT token, and within minutes get a vending machine up to sell that token. This also means that the person selling event tickets or subscriptions doesn't have to worry much about actually issuing out the shares or delivering them. The platform enables that person to simply press go, and for a small fee (minimum US$5.00 per month), their assets are sold and transferred seamlessly.
CoinDaddy CEO, Jeremy Johnson, explained:
“CoinDaddy’s primary focus is on making these exciting blockchain technologies easier to understand and use for both developers and end-users. With the addition of the Asset Vending Machine Service to CoinDaddys existing tools, users are now able to register an asset, setup a website to promote their asset, and setup a vending machine for their assets with very little technical knowledge. By making it easy to get started using assets users are able to focus on how to use their asset in creative ways, rather than getting bogged down in the technical details of how to work with assets.”
In addition to CoinDaddy’s new service, there are other vending machine providers, which have come online in the past months including Vennd.io and Tokenly’s Swapbot. Vennd has been around for awhile now and is an easy, general purpose digital vending machine. Users simply send bitcoins to it and it will send back a corresponding Counterparty token. Similar in implementation, Swapbot (which launched mere weeks ago) is an automated token vending machine system which also supports Bitcoin and Counterparty assets.
CoinDaddy’s entrance into the vending machine space is a direct extension of the company’s existing purpose of streamlining the registration of Counterparty and Dogeparty assets, and making using and selling tokens easy for anyone. Alongside the vending machine is an integrated reputation system as an added benefit to those using the platform. Detailed reputation and transaction history information is visible right on the vending machine page as a way to help users with their purchasing decision.
Perhaps most appealing about the new vending service is that it supports denominating tokens in fiat currencies. This can simplify the process for both the company utilizing the asset technology and global users buying tokens. If one only wishes to risk 1 Euro on this token or that token, it's easy to do.
Technologies like digital vending machines are enabling a future where the consumer has unprecedented power in their financial decisions. The tokens themselves can retain value, and fluctuate, but they can also serve purposes other than simply transferring value, such as the transfer of ownership or admission granted.
In a more immediate sense, these protocol implementations can hopefully reduce the need for centralized exchanges to shuffle assets and hopefully put pressure on existing instant cryptocurrency conversion services to innovate even further. Vending machines are convenient, automatic, and simple ways to buy or sell tokens, without needing to go through a cryptocurrency exchange.
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They have been used increasingly in recent projects, with the Spells of Genesis […]