How would an airdrop be possible?


A few questions for all.

The CounterParty protocol stores all of its data inside the Bitcoin blockchain.

Bitcoin Cash forked this chain on 1st August 2017.

Since then all transfers of XCP and CounterParty assets have only occurred on the Bitcoin.BTC chain.

How would a 1:1 airdrop actually take place in this environment ?

In a typical setup a computer would either have the entire Bitcoin.BTC chain or the entire Bitcoin.BCH chain.
It wouldn’t be storing both.

If CounterParty is run on a machine with Bitcoin Cash then it will only see CounterParty assets and XCP ownership up until 1st August 2017.

A computer running Bitcoin Cash would not see the XCP and digital asset transfers since 1st August 2017 so a snapshot of the current CounterParty state would not be possible.

One of the main purposes of this crypto-tech ( Bitcoin et al ) is to stop the possibility of double-spending digital assets ( which includes currency ).

Burning of current XCP into XCPC would also not be possible due to the current XCP state not being known on a system running Bitcoin Cash.

What are the technical possibilities which can be applied to address these issues ?

Is a new burn the only way to kick off CounterParty on top of Bitcoin Cash ?

Would it be preferred to have a continuous burn process so that those who do not currently have funds to obtain XCPC can do so at a later date ?

Would it be preferable that instead of burning Bitcoin Cash for XCPC that we instead get charities to create their own BCH addresses and allow BCH to be sent to known charity address and receive XCPC in return ?


First of all, I would like to thank you for asking what seems to me like one of the most productive questions possible. Up until now, much of the dialogue here, on Telegram, and on Twitter has seemed to mostly be people stating their preferences for one outcome or another, without much talk of the tech. Also, my partner and I had a baby yesterday (happy birthday Paxton!), so I apologize for the slow response to your question.

I am a developer that does full stack web stuff, and JS/Node/Solidity. My work experience tells me that anything is possible development wise, it’s always just a question of how hard will that be, how long will it take, and do we have the people to do it. Not insignificant questions for sure, but it’s not usually a question of if it is technologically possible.

And that same work experience tells me that the business logic is often what needs to be decided first to lead the development forward. I am from the camp that believes that the vast majority of value in tech (in both monetary and societal terms) that has been created in the past 30 years comes from network effects. That’s why some tech companies in the stock world have very high Price/Earnings ratios, and other have very low ones. Because it’s not really about their earnings, or even revenues, it’s about their networks and network effects.

So with that being said, the business logic to me is about “what will bring the greatest network effect to CounterpartyCash?” And to me, that is clearly a 1:1 airdrop and all of the attention it will bring to the project, as the crypto world dearly loves forks and airdrops. Aside from the love and hate that BitcoinCash has received, objectively it has been highly successful in growing the size of its network and the price of its coin. I do not believe for a second that would have happened if you had to burn BTC to get BCH.

I would additionally suggest an airdrop to holders of BitcoinCash. Certainly not 1:1, but something that increases the CounterpartyCash supply by 10 or 20%, similar to what a project like Stellar has done with Lumens. They took a snapshot of the BTC chain on June 26, 2017 and then made 16% of their token supply available to be claimed with an approximately 60 day claim window. Personally I had never paid much attention to Lumens, and the coins I got in the airdrop moved me to find out more about the project, which I ended up liking very much and getting on board with. The price of the tokens were $.03 at the time, are now worth $.62 and have seen a high of $.87, so I am very grateful for that airdrop and for the opportunity to learn more about Stellar Lumens and get with their project and invest more deeply.

Would an airdrop also bring general riff-raff and speculators? Of course it would. Might it also benefit some parties in the community that other parties are not fond of? Yes indeed. But would it also bring the highest number of eyeballs to the project? An absolute resounding yes. BitcoinCash has people who have become enormously dedicated to the project over the past half year. BitcoinPrivate does not even exist yet, and it has people who are completely in love with it. And might some of those people have started out by just buying some ZCL hoping to make some money on a fork, learned more about the project and fell in love? You betcha.

And since XCP is not just a token, but a protocol that has many digital assets built on top of it, there is the question of what to do with those assets. To me, this is where the question of double spending comes in. Some asset owners may want to have them duplicated, others may not, some may want to migrate to BCH and others may not. My feeling would be to create a migration tool that allows the asset owner to choose what they want, i.e. migrate the assets to BCH, clone the assets so they exist on both chains, or not do anything and leave them on BTC.

To make the airdrop possible, and to prevent the automatic cloning of assets built on top of XCP, I suggest not just patching the codebase to work on BitcoinCash, but to also make a change to something in the code that would prevent the existing XCP assets on the BCH chain from being recognized as XCPC assets. The airdrop would be of XCPC tokens only, and they would start with no assets on them. People would need to either build new assets on top of XCPC, or use the migration tool to bring existing XCP assets over.

So these are my opinions on how to build the strongest CounterpartyCash with the largest network effects, and some general ideas of how the tech would function. And I am certainly willing to help in the development of this as well. Looking forward to continued dialogue.


First and most importanty, congratulations for bringing Paxton into the world at such an exciting time.

Second, I am impressed with the thought, experience and considerations you have brought to this discussion. Many of us non-programming types simply do I not know what is possible, so opt for the simplest solutions.

But until I read your suggestions I could only consider the August 1st creation of assets on Bitcoin Cash chain, as a reality requiring a port.

Thanks again, and welcome Paxton!