Colored Coins and Coinprism takes Bitcoin to a whole new level - page 3.

Peter R

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Quote from: BTCat on May 15, 2014, 04:06:54 PM

It's still centralized if you need a webbased wallet. Basically all underlying assets would be hosted on your servers. So my question is, is there or will there be a download wallet so people can keep and manage funds from their own computer?

Coinprism is, AKAIK, the first wallet implementation of the open-assets (colored coins) protocol: https://github.com/OpenAssets/open-assets-protocol/blob/master/specification.mediawiki. They mentioned earlier in this thread working on an add-on for bitcoin-qt in the future.

Colored coins are not centralized. For example, I could send colored coins from my Coinprism webwallet to a cold-storage address that I created offline. Your colored coins cannot be spent without your offline private key.

But you need to be very careful. If you import your colored coin cold private key into a non-color aware wallet you could accidently uncolor your coins. You'd have to go back to the issuer to ask for new colored coins and perhaps he'd give them you since you could prove that it was you who destroyed them.

BTCat

legendary

Activity: 1960

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It's still centralized if you need a webbased wallet. Basically all underlying assets would be hosted on your servers. So my question is, is there or will there be a download wallet so people can keep and manage funds from their own computer?

vtropolis

newbie

Activity: 35

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We are using colored coins to create an IPO of our e-commerce business, since it gives a lot of control to us and no fees as oppose to using mastercoin or havelockinvestments.com and cryptostocks.com. Look here: https://bitcointalksearch.org/topic/first-colored-coin-initial-public-offering-monthly-dividends-609682

I don't think people would make the switch to from bitcoins to ethereum, nxt, mastercoin and other crypto 2.0 protocols just because although they may be innovative, there is not much incentive to make the switch. I could be wrong, only time will tell.

BTCat

legendary

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Can colored coins easily be used as credit in another environment such as in a game?

sclaggett

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Quote

I think what is confusing to many people is that "colored coins" are not a new alt coin. The coloring technique is a free and open-source way to turn small amounts of bitcoins into IOUs, shares, vouchers, etc. Colored coins can co-exist alongside regular bitcoins at a particular bitcoin address.

You can't buy "colored coins" in the general sense. But any given person can color a very small amount of bitcoins to create a specific instance of a colored coin. For example, I created 10 worthless tokens (WTK).

The benefit of creating colored coins that exist on-chain is (a) they can be traded for regular bitcoins in a trustless manner using coinjoin, (b) they are secured by the most powerful single purpose computing network ever created (the bitcoin network).

Interestingly you could create "colored coins" that are backed by a fiat currency. No fluctuation. So in a way you can create virtually any alt coin you want. Correct? The mechanics of are just different.

I pay you $50 for x colored coins where each colored coin is basically a note or iou for $50. You can then redeem that token and get $50 back; it could even have interest applied. This is my assumption at any rate.

Ron~Popeil

sr. member

Activity: 406

Merit: 250

Quote from: 2017orso on May 15, 2014, 07:58:42 AM

@Peter R

respectfully request a rare WTK if some remain...for testing purposes

18fi8sqAkL8JxfAScVK6inv5F1vFw8HCUD

nm created a token, this is interesting.

-------------------------------------------

very excited about the potential of colored coins.

Dude I can sell you one but they are really really rare so it would cost you. Grin

dexX7

legendary

Activity: 1106

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I was already amazed by the testnet version, so all I can say: gratulations and awesome stuff! Wink

Peter R

legendary

Activity: 1162

Merit: 1007

Quote from: HeliKopterBen on May 15, 2014, 11:39:32 AM

Quote from: Peter R on May 14, 2014, 02:18:23 PM

Quote from: trout on May 14, 2014, 01:57:41 PM

the obligatory 0.0001 transaction fee is a bit of a pita for playing around with these colored coins,
which are only 0.000006 each

0.0001 BTC is only four and a half cents ($0.045). The transaction fee is a deterrent from creating a bunch of spam transactions, so it is a very good thing.

In a practical setting, the value of the "color" transferred should be much larger than the transaction fee. The fact that only 6 bits actually got sent is not the point. The point was to transfer ownership of the digital assets.

It typically costs over $100 to transfer assets such as shares between brokerage accounts--that's at least 2000 times more expensive than transferring shares using open-assets.

I am still a bit confused about this. If I transfer 1000 shares of ABC stock, will the underlying bitcoin transferred be 0.000006 or 0.000106 including the transaction fee. I would think the transaction fee needs to be included.

Here is an example of a colored coin transaction.

I think the 6-bit input from 1MdTq is the "colored coin" and the other input is the uncolored bitcoin "fuel" that makes the transaction work. You see that there are 4 outputs: two 6-bit colored coins, change, and OP_RETURN metadata.

One of the colored coins got sent to 1CcG, the other was returned as "colored coin change" back to 1MdTq. Since all colored coins are 6-bits, this required borrowing 6 bits from the uncolored bitcoin fuel. 100 bits was also paid out of the fuel as a transaction fee, and the rest of the uncolored bitcoins were returned to 1MdTq. The OP_RETURN logs metadata to the blockchain that records the accounting for how the "color" in the input colored coin was split up into the two output colored coins.

HeliKopterBen

hero member

Activity: 622

Merit: 500

Quote from: Peter R on May 14, 2014, 02:18:23 PM

Quote from: trout on May 14, 2014, 01:57:41 PM

the obligatory 0.0001 transaction fee is a bit of a pita for playing around with these colored coins,
which are only 0.000006 each

0.0001 BTC is only four and a half cents ($0.045). The transaction fee is a deterrent from creating a bunch of spam transactions, so it is a very good thing.

In a practical setting, the value of the "color" transferred should be much larger than the transaction fee. The fact that only 6 bits actually got sent is not the point. The point was to transfer ownership of the digital assets.

It typically costs over $100 to transfer assets such as shares between brokerage accounts--that's at least 2000 times more expensive than transferring shares using open-assets.

I am still a bit confused about this. If I transfer 1000 shares of ABC stock, will the underlying bitcoin transferred be 0.000006 or 0.000106 including the transaction fee. I would think the transaction fee needs to be included.

Peter R

legendary

Activity: 1162

Merit: 1007

Quote from: Coinprism on May 15, 2014, 10:35:49 AM

Quote from: Peter R on May 15, 2014, 10:08:14 AM

Quote from: dave111223 on May 15, 2014, 06:59:56 AM

Is there anyway to track colorcoin transactions via Bitcoind?

For example if you want to setup a bitcoind wallet to handle only a specific coin color asset?

Bitcoind is not "color aware" but I suppose an add-on could be written to do exactly what you suggested. The website, http://coloredcoins.org, has a list of the current wallet projects, although I'm not sure if the list is exhaustive.

At the moment, only coinprism is compatible with open assets. We plan to make a tool that act as a layer on top of bitcoind, that can let you use colored coins without having to use a third party.

Awesome!

Coinprism, if you don't mind me asking, what is your team's business plan? Obviously, www.coinprism.com was a lot of work and now all bitcoin users can use it for free (not that I'm complaining!). Is this just something you guys are doing to help bitcoin and because you are interested, or is there some smart way to monetize related services somehow?

Peter R

legendary

Activity: 1162

Merit: 1007

Quote from: yayayo on May 15, 2014, 08:23:37 AM

The UI sure looks neat.

However I'm not sure how Colored Coins do compare to its multiple competitors like Mastercoin, NXT, Counterparty, Ethereum and so on.

I'm watching it with interest.

ya.ya.yo!

I think what is confusing to many people is that "colored coins" are not a new alt coin. The coloring technique is a free and open-source way to turn small amounts of bitcoins into IOUs, shares, vouchers, etc. Colored coins can co-exist alongside regular bitcoins at a particular bitcoin address.

You can't buy "colored coins" in the general sense. But any given person can color a very small amount of bitcoins to create a specific instance of a colored coin. For example, I created 10 worthless tokens (WTK).

The benefit of creating colored coins that exist on-chain is (a) they can be traded for regular bitcoins in a trustless manner using coinjoin, (b) they are secured by the most powerful single purpose computing network ever created (the bitcoin network).

Coinprism

newbie

Activity: 28

Merit: 2

Quote from: Peter R on May 15, 2014, 10:08:14 AM

Quote from: dave111223 on May 15, 2014, 06:59:56 AM

Is there anyway to track colorcoin transactions via Bitcoind?

For example if you want to setup a bitcoind wallet to handle only a specific coin color asset?

Bitcoind is not "color aware" but I suppose an add-on could be written to do exactly what you suggested. The website, http://coloredcoins.org, has a list of the current wallet projects, although I'm not sure if the list is exhaustive.

At the moment, only coinprism is compatible with open assets. We plan to make a tool that act as a layer on top of bitcoind, that can let you use colored coins without having to use a third party.

Peter R

legendary

Activity: 1162

Merit: 1007

Quote from: dave111223 on May 15, 2014, 06:59:56 AM

Is there anyway to track colorcoin transactions via Bitcoind?

For example if you want to setup a bitcoind wallet to handle only a specific coin color asset?

Bitcoind is not "color aware" but I suppose an add-on could be written to do exactly what you suggested. The website, http://coloredcoins.org, has a list of the current wallet projects, although I'm not sure if the list is exhaustive.

Peter R

legendary

Activity: 1162

Merit: 1007

Quote from: 2017orso on May 15, 2014, 07:58:42 AM

@Peter R

respectfully request a rare WTK if some remain...for testing purposes

18fi8sqAkL8JxfAScVK6inv5F1vFw8HCUD

nm created a token, this is interesting.

-------------------------------------------

very excited about the potential of colored coins.

One worthless tokens (1 WTK) has been sent to 18fi8sqAkL8JxfAScVK6inv5F1vFw8HCUD!

yayayo

legendary

Activity: 1806

Merit: 1024

The UI sure looks neat.

However I'm not sure how Colored Coins do compare to its multiple competitors like Mastercoin, NXT, Counterparty, Ethereum and so on.

I'm watching it with interest.

ya.ya.yo!

bish5555

full member

Activity: 185

Merit: 100

@bleeprepeat

Quote from: 2017orso on May 15, 2014, 07:58:42 AM

@Peter R

respectfully request a rare WTK if some remain

18fi8sqAkL8JxfAScVK6inv5F1vFw8HCUD

Behold

https://www.youtube.com/watch?v=TkZFuKHXa7w

M++

sr. member

Activity: 342

Merit: 250

Hello,

like everyone else i'm confuse with coloredcoin but start to really study it, thanks for your website it's look very nice and easy.
few questions :

Can we imagine a multisign wallet for the issuer of coloredcoin ? I guess with a certain form of organisation it's can help to etablish a trust.

Can we imagine make a token for a multisign wallet private key ? (i'm really not sure about this question xD)

Or do their is anypossibility offer with your coloredcoin that's i don't understand ? If think your understand what my point is with the first 2 questions.

2017orso

sr. member

Activity: 434

Merit: 250

@Peter R

respectfully request a rare WTK if some remain...for testing purposes

18fi8sqAkL8JxfAScVK6inv5F1vFw8HCUD

nm created a token, this is interesting.

-------------------------------------------

very excited about the potential of colored coins.

minorkacologne

newbie

Activity: 28

Merit: 0

Interesting idea. I'm not sure it it really puts bitcoin to whole new level but good luck developing it!

dave111223

legendary

Activity: 1190

Merit: 1001

Is there anyway to track colorcoin transactions via Bitcoind?

For example if you want to setup a bitcoind wallet to handle only a specific coin color asset?

Topic: Colored Coins and Coinprism takes Bitcoin to a whole new level - page 3. (Read 11162 times)