Trying Out Counterparty Helped Me Appreciate Openledger Even More

in #bitshares7 years ago

I always liked the idea of a decentralized exchange. It is a brilliant solution to Bitcoin's Mt Gox problem. But I had never used one until relatively recently. I've been using Openledger (Bitshares), and while I've got some minor issues with it, I've been enjoying the platform.

I decided to try out Counterparty/XCP by getting some PEPECASH. Being familiar with the concept of a DEX, it was easy enough to open and fund an account. I ran into a small snag when I tried to purchase the PEPECASH, because I had only funded my account with XCP, not BTC. Since the Counterparty platform is based on the Bitcoin blockchain, it requires BTC miners' fees.

This highlights two advantages of Openledger. The platform is based on Graphene, with 3 second block times which provide lightning fast transactions. And the BTS fees are much lower than those you pay when making Bitcoin transactions.

After waiting for the excruciatingly slow network to confirm my deposit (I'm spoiled now, I guess), I was able to complete my purchase of the desired PEPECASH.

Now... my intent was not to be a long term HODLer of PEPECASH. I just wanted to kick the tires a bit, and familiarize myself with Counterparty. I decided to sell it back, and since there wasn't much compelling about the platform I would probably not sit on the XCP either.

Here's where things got UGLY and turned my ambivalence into anger. The BTC I put in the account was not enough to cover a second market transaction... Annoying.

I sent what should have been enough BTC to cover the fee, and attempted to place my order once again. Only to find that the fee they demanded had increased! And now it was well beyond an acceptable amount for a transaction of $100 or less.

This is where I started taking screenshots, because things were starting to seem a bit off about this whole thing. I was getting frustrated at this point, and just wanted to get my funds off the platform and move on... So I rolled my eyes and sent some BTC, which should have been enough to cover the fee.

...and I waited... and waited... because BTC.

The last thing I wanted to see when I tried to place the order again was...

They now wanted more!

And more!

I funded my account with $6+ of Bitcoin by now:

Surely, that would be the end of this game. Right? Right?!

WRONG!!

So now here I am, sitting with some dumb meme token I didn't expect to be HODLing, on a platform I don't trust... But at least it has given me a new sense of appreciation for BitShares and Openledger.

With the quick transactions, minimal fees, and wide selection of coins and assets available to be held in the wallet or traded in the market, Openledger can truly replace centralized exchanges. And best of all, you can trust the platform, the blockchain, and the many dedicated witnesses.

I'm grateful for it.

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Counterparty looks like abandoned platform. 3 years without any significant move. They missed so many opportunities.

yeah, they messed up.

I can feel your pain. XCP is much better for keeping your digital assets than for trading. Trading is a bonus and will be much faster after BTC implement SegWit.

I will never be using this platform again.

But with PEPECASH you are alfa male now :)

One thing to understand about the Bishares DEX is that when dealing with UIA (user issued assessts) such as OPEN.BTC or OPEN.STEEM you still need to have a level of trusts in the entity that issues those assets...in this case Open Ledger. In that sense it is not 100% trustless since in order to withdraw your BTC, ETH, STEEM or any other currency that you deposit Open Ledger needs to honor your withdrawal.
However when trading with BTS or any smart coins such BitBTC, BitUSD, BitEUR, etc the DEX is 100% trustless and descentralized.

Great point!

Another thing to point out is that there are no deposit or withdrawal limits when dealing with BTC, STEEM or any other digital token. Plus you can create your own tokens which opens up a world of business opportunities.

Counterparty was one of the hottest assets when it launched. It spawned a few decent crowdsales such as Swarm, Storj, GetGems, and Spells of Genesis. I learned quite a bit about the potential of blockchain tokens on the Counterparty platform. However, it just seemed to fizzle along the way. The long wait times for token creation and sends, along with the high amount of fees, seems to have really hurt the platform. Ethereum and Bitshares are definitely showing what the new expectation level is.

I just cant get back the money I have on the site. I can't have enough BTC in my wallet. However much I have, it says I need a little bit more. I cover that amount, and it says I need still more.

It's pretty much a scam.

Great post, easy to read and very interesting, @bacchist!
I have just upvoted and followed you.

great post and interesting

Hence why Storj recently announced that they will be moving away from Counterparty.

http://blog.storj.io/post/158740607128/migration-from-counterparty-to-ethereum

Good article. Interesting to see I'm not the only one that is thinking about this. The popularity of the cryptos is currently determined by the biggest group of uneducated investors in man kind. It's an interesting world we live in. Besides coinmarketcap.com there is: https://www.coincheckup.com This site is really helpful in my coin research. I don't know any other sites with so much indepth analysis. Check for example: https://www.coincheckup.com/coins/Counterparty#analysis For the Counterparty Investment research report.

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