Counterparty Highlights Range of New Products, Addresses Bitcoin Spam Transaction Volume

Following the news regarding project related startup Symbiont last week, the development team behind prominent blockchain protocol Counterparty provided an update on its community developments.

A Counterparty mobile wallet developed by IndieSqare was highlighted. The IndieSqare team recently updated the wallet and open sourced its client side source code. More information on the wallet and its development can be found in the a recent update episode on Let’s Talk Bitcoin.

In addition, the project team identified a range of Counterparty open-source products that are in development.

The update also placed emphasis on community discussions regarding the transaction processing costs and ideas on lowering the frequency of payouts, as well as destroying Counterparty assets and whether the Counterparty burn address can be used for that purpose.

The Counterparty project also addressed problems with recent Bitcoin spam transactions and mitigation methods.

With the recent Bitcoin spam transaction volume, the modified version of bitcoind that counterparty uses (bitcoind-addrindex) will periodically experience responsiveness issues.
The cause of this appears to be a the large mempool size, and we have seen bitcoind-addrindex become unresponsive starting with mempool sizes anywhere from 3,000 to 10,000 entries.
At the moment, the best method to mitigate this problem seems to be adding the following parameters to one’s bitcoin.conf, which will cause your node to ignore most of these spam transactions:

minrelaytxfee=0.00005

limitfreerelay=0

This will greatly slow the growth rate of the mempool, and reduce its size, but does not seem to eliminate the problem at the moment.

The Counterparty team indicated that it is working on a more robust solution and will keep community updated on the progress.

The bitcoin spam issue  is noteworthy as Counteryparty is a protocol tied to the Bitcoin Blockchain. Counterparty spin-off firm Symbiont is looking at developing private custom blockchains for its customers rather than using Counteryparty.