What is a counterparty in Crypto?

Could you please explain what a counterparty is in the world of cryptocurrency? I understand it's an important concept, but I'm still a bit unclear on the specifics. Is it similar to a counterparty in traditional finance, or does it have a unique meaning in the crypto space? How does it play a role in transactions and how does it impact the overall crypto ecosystem? I'd appreciate a clear and concise explanation.