Problem:
How to determine the exchange between Bitcoin and Colored Coins? As you said, Colored Coins can represent real dollars, so when the currency values fluctuate a bit, how to ensure that the value of Colored Coins?
Topic: Colored Coins and Coinprism takes Bitcoin to a whole new level - page 8. (Read 11181 times)
Question:
I'm a farmer and have 100 apples. Am i correct in that I can issue 100 shares for my apples?
When I sell an apple colored coin what happens to the coin when the apple is eaten? Does the time-stamp just act like a receipt?
When the apple is eaten, the counterparty assigns it to another apple or recolors it. I'm a farmer and have 100 apples. Am i correct in that I can issue 100 shares for my apples?
When I sell an apple colored coin what happens to the coin when the apple is eaten? Does the time-stamp just act like a receipt?
So for clarity, the buyer destroys the coin upon taking possession of the apple? or only after the apple has been eaten?
He's not describing a futures contract, he's describing a voucher. Just use Groupon if you want to sell vouchers
Colored coins can represent vouchers, futures contracts, or many other things; it's up to the issuer to decide. Colored coins are unlike anything that has ever existed before. They allow people to create and trade assets like apple futures contracts, shares in a company, or IOUs for gold stored in a vault, just to name a few. The open-asset protocol is what allows these assets to be subdivided and freely traded without the need for the issuer to record and account for the trades--the protocol does this for him. Colored coins will be an exciting addition to the bitcoin ecosystem.
I understand what colored coins are and they sound cool. However the apple seller doesn't sound like he wants to write a futures contract. He wants to write a voucher.
But since his business is a startup Groupon is better for him since they can also distribute the vouchers to their user base so he doesn't need to do his own marketing.
I don't know if he really wants to sell apples or its just an example.
Personally I think its a terrible business plan to secure financing by selling vouchers. He's better off using a presale model like Kickstarter if his goal is to raise capital. Either that or just take out a business loan
The other thing to consider is even you can color coins for futures contracts why would you want to? Most people who trade futures prefer cash setlled and trade them for speculation. What they care about is liquidity. If the colored coin transaction takes 10 mins, the market makers will be forced to widen the spread which will make them unattractive for trading. Plus there's already mature exchanges for futures. What is the advantage to using blockchain compared to what we have now?
It has the same problems of bitcoins. Why bother using it when there are superior options like credit cards and ATMs everywhere.
Question:
I'm a farmer and have 100 apples. Am i correct in that I can issue 100 shares for my apples?
When I sell an apple colored coin what happens to the coin when the apple is eaten? Does the time-stamp just act like a receipt?
When the apple is eaten, the counterparty assigns it to another apple or recolors it. I'm a farmer and have 100 apples. Am i correct in that I can issue 100 shares for my apples?
When I sell an apple colored coin what happens to the coin when the apple is eaten? Does the time-stamp just act like a receipt?
So for clarity, the buyer destroys the coin upon taking possession of the apple? or only after the apple has been eaten?
He's not describing a futures contract, he's describing a voucher. Just use Groupon if you want to sell vouchers
Colored coins can represent vouchers, futures contracts, or many other things; it's up to the issuer to decide. Colored coins are unlike anything that has ever existed before. They allow people to create and trade assets like apple futures contracts, shares in a company, or IOUs for gold stored in a vault, just to name a few. The open-asset protocol is what allows these assets to be subdivided and freely traded without the need for the issuer to record and account for the trades--the protocol does this for him. Colored coins will be an exciting addition to the bitcoin ecosystem.
coinprism is 100% premine right?
Colored Coins are 100% 'premine'. Coinprism is the name of the wallet that creates and holds the Colored Coins.
It is a misnomer to even apply terms like 'premine' to coins that have been colored. The meaning of the color is whatever the issuer decides, so colored coins aren't really even "coins" in the usual sense. They're more like bearer bonds that represent promises made by the issuer. The open-assets protocol that Coinprism uses is a way to track the color as the promises are freely traded on the blockchain.
The issuer of a class of colored coins can create as many as he wants at will. He could issue 1,000 today, and then issue 10,000 three days later, and 1,000,00 the week after that. But this is not a problem at all and is in fact necessary, as the color just represents promises.
Open-assets protocol: https://github.com/OpenAssets/open-assets-protocol/blob/master/specification.mediawiki
it seems the announcement is premature. the site is not working yet
It was meant to start Today, but at the last minute it was pulled to fix a few small issues. I tested it and it works well already. It will be public before the end of this week.
Question:
I'm a farmer and have 100 apples. Am i correct in that I can issue 100 shares for my apples?
When I sell an apple colored coin what happens to the coin when the apple is eaten? Does the time-stamp just act like a receipt?
When the apple is eaten, the counterparty assigns it to another apple or recolors it. I'm a farmer and have 100 apples. Am i correct in that I can issue 100 shares for my apples?
When I sell an apple colored coin what happens to the coin when the apple is eaten? Does the time-stamp just act like a receipt?
So for clarity, the buyer destroys the coin upon taking possession of the apple? or only after the apple has been eaten?
He's not describing a futures contract, he's describing a voucher. Just use Groupon if you want to sell vouchers
Let's say I want to grow an apple tree. I need money for fertilizer, insecticide, and water. I can supply the seed, the land, and the labor. So to raise money for this venture I sell applecoins* expecting to get a yield of 1000 apples in a season (we have fast growing trees). I sell 100 colored coins to cover those costs and will give each colored coin owner 5% of the yield rounded down to the nearest whole apple and then will offer a discount on apple pie to the applecoin holders as well. To redeem the colored coins for the apples, you must send them back to me.
*screw you Apple, Inc.
*screw you Apple, Inc.
That's a good business model. Especially the Apple pie part.
coinprism is 100% premine right?
Colored Coins are 100% 'premine'. Coinprism is the name of the wallet that creates and holds the Colored Coins.
ok. So when I give the apple he sends me back the applecoin.
What happens next? Do I destroy it?
edit
I want to be honest in representing the number of apples I have
What happens next? Do I destroy it?
edit
I want to be honest in representing the number of apples I have
Yes, if he exchanges his coins for an apple you're supposed to destroy the coin regardless if he eats it or not. Because you don't have the asset to back up the coin anymore.
Question:
I'm a farmer and have 100 apples. Am i correct in that I can issue 100 shares for my apples?
When I sell an apple colored coin what happens to the coin when the apple is eaten? Does the time-stamp just act like a receipt?
I'm a farmer and have 100 apples. Am i correct in that I can issue 100 shares for my apples?
When I sell an apple colored coin what happens to the coin when the apple is eaten? Does the time-stamp just act like a receipt?
You can technically release any number of colored coins to represent your apples.
If you sell a Colored Coin you're not supposed to eat the apple which is the physical representation of your coins. You must reserve it in case somebody wants the apple in return for the coin.
This is huge. This is the "killer app" people have been waiting for. If you aren't familiar with the colored coins concept it would definitley be worth your time to do a you tube search. Make some coffee before you start.
it seems the announcement is premature. the site is not working yet
coinprism is 100% premine right?
Coinprism is only a wallet. You supply the bitcoins to fund your IOUs.Right--talking about "premine" doesn't even make sense. The coloring process is a tool that any bitcoin user can use to create IOUs or digital representations of other assets. It is the "pen and paper" to create the IOUs, not the IOUs themselves. If you want to create your own IOUs by coloring coins, there is nothing to buy so long as you have a small amount of bitcoins.
These are not some new foo-coin, they are simply a new way to use bitcoins and the blockchain ledger. If colored coins become popular, then it will help to increase the demand to hold bitcoins.
EDIT: coinprism is like a paintbrush for coloring your bitcoins. Uncolored bitcoins go in (white light) and all sorts of colors can come out:
coinprism is 100% premine right?
Coinprism is only a wallet. You supply the bitcoins to fund your IOUs.
coinprism is 100% premine right?
ok. So when I give the apple he sends me back the applecoin.
What happens next? Do I destroy it?
edit
I want to be honest in representing the number of apples I have
What happens next? Do I destroy it?
edit
I want to be honest in representing the number of apples I have
Colored coins are IOUs so it is always possible for the issuer to misrepresent the underlying assets. It's up to you to ensure that the IOUs outstanding is reasonable based on your ability to deliver. This is not a bad thing, as you may be a very trustworthy apple producer and always honour convertibility of the the apple-IOUs into real apples.
However, if you suspend redemptions in the future because you were operating a fractional reserve apple farm and there was a "run on your apples," then the value of the apple-IOUs outstanding will fall below the market value of other apples of commensurate quality. Your customers who were regularly buying apple IOUs from you (effectively futures contracts which helped you pay to grow the apples) may not want to purchase from you anymore and this would hurt your business.
Let's say I want to grow an apple tree. I need money for fertilizer, insecticide, and water. I can supply the seed, the land, and the labor. So to raise money for this venture I sell applecoins* expecting to get a yield of 1000 apples in a season (we have fast growing trees). I sell 100 colored coins to cover those costs and will give each colored coin owner 5% of the yield rounded down to the nearest whole apple and then will offer a discount on apple pie to the applecoin holders as well. To redeem the colored coins for the apples, you must send them back to me.
*screw you Apple, Inc.
*screw you Apple, Inc.
NXT also released similar technology recently called Asset Exchange. They have virtually no marketing budget so there isn't as much fanfare. It does work well though.
https://nxtforum.org/asset-exchange-62/how-to-make-your-own-local-fiat-exchange-with-nxt-ae/
-bm
https://nxtforum.org/asset-exchange-62/how-to-make-your-own-local-fiat-exchange-with-nxt-ae/
-bm
ok. So when I give the apple he sends me back the applecoin.
What happens next? Do I destroy it?
edit
I want to be honest in representing the number of apples I have
What happens next? Do I destroy it?
edit
I want to be honest in representing the number of apples I have
Question:
I'm a farmer and have 100 apples. Am i correct in that I can issue 100 shares for my apples?
When I sell an apple colored coin what happens to the coin when the apple is eaten? Does the time-stamp just act like a receipt?
When the apple is eaten, the counterparty assigns it to another apple or recolors it. I'm a farmer and have 100 apples. Am i correct in that I can issue 100 shares for my apples?
When I sell an apple colored coin what happens to the coin when the apple is eaten? Does the time-stamp just act like a receipt?
So for clarity, the buyer destroys the coin upon taking possession of the apple? or only after the apple has been eaten?
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