Counterparty is the first cryptocurrency to utilise the Proof-of-Burn method where users "burn" or destroy bitcoin by sending it to an address where no one has the private keys. Proof of coin burning will be rewarded with the creation of the newly created Counterparty XCP coins.
Counterparty is written on an entirely new code base. The protocol's native currency, XCP, is zero-mined and slightly deflationary, with 2.6 million XCP created by burning bitcoin in January.
Counterparty has the following features: user-created assets, distributed exchange, feeds, betting and financial derivatives.