Topic: ChromaWallet (colored coins): issue and trade private currencies/stocks/bonds/.. - page 28. (Read 97112 times)

Well, what this actually does is expanding the space of currency from one dimensional to n-dimensional.

But to use that consistently trade would have to be done upon an agreement of angle the corresponding vector... not something that non-nerds would be comfortable of doing
I like the idea anyway, especially because you have just done it instead of bragging about it first.

I understand the coloring part, but I don't get how this paves the way for distributed exchanges. What am I missing?

Can the colored bitcoin concept be accomplished without having to traverse the blockchain to ensure the coins came from an issuing transaction? This is probably necessary anyway because of blockchain pruning. Perhaps allowing output scripts to compare/analyze serialized input scripts to ensure that an input is derived from an issuing script or transaction.

Interpretation from Sesame Street: a business could color .01000000 bitcoins then sell them each for 1 millionth of a share of their profits, all being tracked on the blockchain? Then .00000001 colored bitcoin could trade just like 1 share of stock. For example it could be worth 10 bitcoins?

I'm glad you're working on this. I hadn't heard of the idea until just now, but after reading the bitcoin2.x spec, I really like the idea.

I just wanted to respond to your quote from the other thread...


As you say, I don't think is a fundamental problem. Bitcoin is only hostile toward microtransactions because it makes little sense to do any transaction for an amount around what it costs to pay the transaction fee. However, it isn't necessary to include every transaction in a block at the same time, or to do microtransactions one at time.

It has been suggested that in the future, parties who have some level of trust may create a chain of dependent bitcoin transactions before finally submitting the entire chain to a miner with an appropriate fee (but at a discount from the fee-per-transaction model). There was another, related idea that would allow one party to securely pay another in small increments up to a predetermined amount. Unfortunately, I cannot remember where I saw that.

New things:

• The focus now is on NGCCC (ngcccbase, in particular),more info here. Developers are welcome to join the development!
• WebcoinX is a web client, demo running on testnet is available here
• we're looking for developers to complete WebcoinX
• the theory of colored coins
• ArmoryX is outdated, but some useful info is available below

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I'm working on colored bitcoins proof-of-concept.

What are colored bitcoins?
Here's a brief description by Meni Rosenfeld (quote from upcoming paper on this subject):


Why do we need them?
Again, Meni Rosenfeld:


So, decentralized exchanges (as an alternative to things like GLBSE and MtGox), private currencies, stuff like that. Very interesting, in my opinion. We do not really need them, but it's cool.

Whose idea is this? Where can I read more?

I don't know who invented this originally, but I've found about them via this thread: https://bitcointalksearch.org/topic/investigating-the-need-for-mastercoin-colored-bitcoins-101197 (Alt cryptocurrencies forum), particularly this description: http://yoniassia.com/bitcoin-2-x-or-currency-2-x-initial-specs/

Apparently it's somewhat related to smart property and Mike Hearn's distributed bond market (https://bitcointalksearch.org/topic/distributed-bond-markets-and-pay-to-policy-outputs-92421), although it's not the same thing.

Jeff Garzik is working on smartcoin (https://github.com/jgarzik/smartcoin) which is kinda 'distributed bond market', but it is colored coin compatible.

There were also many threads on decentralized exchanges, e.g. https://bitcointalksearch.org/topic/rfc-distributed-bitcoin-stock-exchange-dbse-54033 , https://bitcointalksearch.org/topic/on-a-decentralized-bitcoin-based-stock-market-52494 , https://bitcointalksearch.org/topic/idea-arbitrary-bonds-fiat-gold-options-shares-votes-via-cryptocurrency-66868 .

Here's a description of one which I aim to implement: http://bitcoin.stackexchange.com/questions/2039/is-a-distributed-version-of-glbse-possible-how-would-you-design-it/2042#2042

ArmoryX is outdated!

We had a working implementation, but Armory requires too much resources to run, so we completely abandoned it.

Instead we're working on the next gen colored coin client: https://github.com/bitcoinx/colored-coin-tools/wiki/The-next-gen-colored-coin-client

And a web client: http://bitcoinx.github.io/webcoinx/


Where's code?

Note: this code is only of historic significance

https://github.com/killerstorm/BitcoinArmory branch color

Specification (which is work-in-progress) and some research tools are available here: https://github.com/killerstorm/colored-coin-tools

(Old Bitcoin-Qt proof-of-concept which is largely irrelevant now:  https://github.com/killerstorm/bitcoin/tree/cbtc branch cbtc.)

Discussion

Incomplete specification: https://github.com/killerstorm/colored-coin-tools/blob/master/colors.md

Tech discussion thread: https://bitcointalksearch.org/topic/colored-bitcoin-tech-discussion-106449

Order-based coin coloring: https://bitcointalksearch.org/topic/order-based-coin-coloring-114571

Mailing list: http://groups.google.com/group/bitcoinx