Topic: Creating a ERC20 type of Token/Coin on Bitcoin Blockchain or Lightning Network (Read 167 times)

the way those 'token's work is in many ways
1. simply renaming but following same rules, features
2. lock up and rename allowing some custom sub-ruleset
3. lock-up and peg to new network to have full custom rules

let me explain
without doing anything to the blockchain consensus rules. without doing anything to the block data or consensus rules, you can make a wallet that just calls 1btc anything you like. whether it be 100,000,000sats
1m bits. or make up your own name call them bunny rabbets for all that matters.
where by anyone using your version of a bitcoin wallet then see's someone with 1btc as having 1rabbit. (just for fun)

as for trying to 'tokenise' you dont need in some cases, have to make a whole new network.
you can just have a certain allotment of coins locked up in a different tx address format where certain wallets treat funds locked into a certain address format be treated differently than ones not in certain address..
(like how bc1q addresses have different fee formulae compared to '1' addresses, and calculation of the bytes of the tx are treated differently)
you can add new rules that only your wallets follow and they have their own sub-net within the network to communicate with each other for other feature, rule compliance of just those tx formats

just a minor tweak to wallet software and you can have new transaction formats for those participating in using that wallet, where by, for instance 'BC2s' prefix. is then allowing wallets that recognises bc2s prefixes to use their own separate rules within their community inside the bitcoin community where they still also treat the normal '1','3'.'bq1q' prefixes as standard and still part of the network validating al transactions
where by as long as your paying bc2s to bc2s in wallets understanding this. they can have their own rules/features. and the rest of the network just see it as a normal transaction to new format. what your wallets do and communicate with each other is upto them.
bc2s funds can represent anything which the bc2s wallets then agree on


as for wanting to set up a new network where the nodes are no longer needing the bitcoin blockchain for transactions/consensus. whereby you can fully customise all the rules. well you can do that too. but i would say learn from the mistakes of LN and other sidechains and altnets. but dont rely on LN and other altnets. if you want to go separate start from fresh. some of these altnets like LN are very flawed, so dont use them as your 'go to' network of choice, try something new

also learn the risks of promises of the pegged tokens. if your going to promise a 1:1 or 1:1000 peg.. actually code it in. actually make it a hard rule that cannot be broken, dont have methods of fractional reserve like giving token balance before confirms. as thats a financial hazard risk of fractional reserve ability.

Not in its present state, but I believe that it could potentially be adapted to work with colored coins.

Can these colored coins be transacted over the Lightning Network to give it the advantage of it's high TPS?

Thank you. I have read this article and that is why I was curious about Colored Coins as way to launch a token on the Bitcoin Blockchain. Do colored coins have the same security level as Bitcoin does? Can colored coins be transacted over the Lightning Network? Are there any colored coins that are in existence and popular today?

A few years ago there was such a promising project as the Counterparty: https://counterparty.io/
Tokens on the Counterparty used the bitcoin blockchain. Unfortunately, this was the cause of their death.

Can these colored coins be transacted over the Lightning Network to give it the advantage of it's high TPS?

You can't deploy token on btc network. I am guessing this is what you are looking for. Bitcoin isn't like ETH or Binance chain where you can deploy token. To Know more about color coin you may read this article.

https://www.etoro.com/crypto/what-are-colored-coins/

You can do it with Colored Coins, as you've rightly said. What else do you want to know?

I'm trying to seek advice/answer whether it is possible today to launch a new coin on Bitcoin or the Lightning network. I've read that Taro BIP from Lightning Labs will offer this but it will take time. I have also read that Colored Coins on the Bitcoin Block can be issued today and are similar (although with limitations) to the ERC20 type of token. Any advice would be much appreciated