Knowing which cryptocurrency project will fit your specific investment standards more is an essential role that you need to be aware of prior to buying any crypto asset out there.
There are literally thousands of tokens as well as cryptocurrency projects currently available within the broader crypto market, and as such, it can be difficult for newcomers to figure out exactly what they need to look out for.
That said, one debate that has occurred throughout the crypto industry for years now is the Counterparty vs Ethereum debate, where users are asking themselves which projects are worth jumping into and which one should be skipped or avoided for the time being. In some cases, both might be a solid option.
In any case, as a means of clearing the confusion between them a bit, we will be diving deeper into the differences that you should be aware of across both of these projects.
Counterparty vs Ethereum: Explained
Ethereum has been one of the most used cryptocurrency platforms throughout the entire industry due to the capabilities it has provided to decentralized finance (DeFi).
Through the implementation of its smart contract functionality, it has allowed developers to truly explore the blockchain and build exceptional decentralized applications (dApps) that have assisted many users with various needs. If you’re curious who takes Ethereum, learn about it here.
Counterparty features a protocol that essentially allows the nodes to communicate with each other through the Bitcoin blockchain and allows anyone to create their digital tokens within seconds, which can represent anything and are easily exchangeable through a peer-to-peer (P2P) network. Its main purpose is to essentially extend the way the Bitcoin blockchain Is used.
- Project
Ethereum is a decentralized blockchain that was developed as a means of enabling a peer-to-peer (P2P network to securely execute as well as verify application code. This is done through the utilization of what are known as smart contracts. Additionally, the Ethereum blockchain is a platform that has powered numerous other altcoins out there, which are directly built on top of it. If you were curious about how to buy Ethereum anonymously, you can learn how to here.
Counterparty, on the other hand, was developed to extend the functionality of the Bitcoin blockchain through writing in the margins of regular Bitcoin transactions.
The goal here was to essentially open the door for innovation and advanced features, which were at the time simply impossible to pull off with the standard Bitcoin software.
- Utility
The native cryptocurrency token used across the Ethereum network is known as Ether (ETH), and every time a miner verifies a transaction on the blockchain network, they are rewarded with a portion of ETH as an incentive and reward for doing so.
This is a unique token in the sense that it is programmed to increase 4.5% each year, and miners can earn ETH in the form of fees for computations processed within the network. Fees are paid out in “gas” instead of ETH, and this is a special computational unit. Keep in mind, however, that Ethereum is evolving and moving to its Ethereum 2.0 upgrade, which will introduce Proof-of-Stake (PoS).
Counterparty, on the other hand, uses a cryptocurrency token known as XCP. XCP is the native cryptocurrency token that is used for advanced features and represents a stake within the protocol.
This is a token that was launched in 2014 as the first asset on Counterparty, and users can use XCP to create new assets, make bets, or call back any callable assets. These tokens are also used for the execution of smart contracts within Counterparty.
- Market Capitalization and Value
Ethereum has a market cap of $292,789,563,632, a 24-hour trading volume of $24,638,275,672, and a circulating supply of 119,713,184.69 ETH tokens.
As of February 1, 2022, its value is at $ 2,445.76 ETH token. This puts Ethereum at rank #2 in terms of market capitalization.
Counterparty has a market cap of $24,291,223, a 24-hour trading volume of $82,649, and a circulating supply of 2,613,892.00 XCP tokens.
As of February 1, 2022, its value is at $9.30 per token. This puts Counterparty at rank #681 in terms of market capitalization.
- Community
Ethereum has by far one of the largest communities in terms of its social media following and presence out of almost any cryptocurrency project out there. In fact, on Twitter alone, it has over 2.2 million followers, which showcases just how popular the project is and how much interest there is within its overall development, updates, and general usage. You can find the best Ethereum trading platform here.
On the other end of this spectrum, there’s Counterparty, which is a much smaller token and project by comparison. In other words, its Twitter page has around 29.2K followers, which is much below the following that Ethereum currently has. Given the fact that the token is a lot less popular as well, this is fully understandable. Nonetheless, its community is fairly active, despite the smaller size.
Counterparty vs Ethereum: Conclusion
Overall, each project fills its own role within the broader crypto ecosystem. Each project features its own pros, as well as its own cons.
That said, there is a clear winner here in the sense that Ethereum has a far greater following and far more value associated with it in both its native token’s value as well as its trading volume, but Counterparty is also a fairly active project which also has potential to grow going forward.
The result of which tokens to buy will be dependent on the investor in question, as Counterparty is still a solid choice for anyone looking to diversify their portfolio, assuming they already hold Ethereum on it.