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Colored coins are a method to track the origin of bitcoins, so that a certain set of coins can be set aside and conserved, allowing a party to acknowledge them in various ways. Such coins can be used to represent arbitrary digital tokens, such as stocks, bonds, smart property and so on. The colored coins protocol is decentralized just like Bitcoin, but the ...


5

Well, the fact that it will be possible to implement features similar to Namecoin that it will become obsolete. Bitcoin is intended as a currency and a payment system, while Namecoin is designed specifically as a DNS provider for .bit domain names. The fact that Namecoin would be able to handle .com domain names, doesn't mean the currently employed ...


5

It's definitely a common problem found in a lot of those platforms that make it easy to create your own colored coin/token. Asking users to acquire the native token, such as Bitcoin with Counterparty and NXT with the Nxt blockchain, is usually not a good way to start off your relationship with that customer. Some people may be fine with it, but it greatly ...


4

They basically let you do the same thing. The differences are that: Counterparty relies on the XCP currency whereas colored coins work directly on Bitcoin, so you don't have to get price exposure or volatility risk with a new currency when you use colored coins. Counterparty uses a monolithic protocol where breaking changes are introduced about every 2 ...


4

The main difference between these protocols is how they associate and store data about asset ownership. Colored coins at least as implemented by Coinprism, put data in the form of a transaction output that must be retained in later transactions involving the associated standard transaction outputs (spending money). If a colored coin is handled by a wallet ...


3

It is reasonable solution. The main problem is not in the size of blockcain itself. The problem is in growing the number of unspent outputs. OP_RETURN outputs do not increase size of Utxo database


3

Colored coins just "mark" coins with a "color". This is done by using unused data space in the Bitcoin transactions. Counterparty on the other hand has: the same functionality as colored coins decentralized asset trading with automatic order matching assets that can pay distributions (dividends) assets can be customized (divisibility, callback, locked or ...


3

I had the exact same question when reading over that specification document. I'm not sure if that is a mistake in the example, but the conclusion I reached is that the colored coins are destroyed. I tested this with the Python Open assets library and the transaction that claimed less than the full possible number of assets was still a valid colored coins ...


3

You can't trust pure SPV for any Bitcoin 2.0 protocols, because of the 'metadata faking' issue that you outline. You have a few options: Accept you need to run a full node to backtrack through transactions. (Though note that this will not scale well anyway for popular assets.) Use a blockchain that has native support for assets, like Sidechain Elements or ...


3

Yes, this should be possible. A "stealth" transaction still sends the colored coin to a specific ordinary address, and anyone can see on the block chain that this address owns that coin. The only difference with stealth transactions is that this ordinary address, rather than being generated from a private key by the recipient in the usual way, is ...


2

Based on my understanding of Cryptonote's ring signature implementation, no, it cannot be used with colored coins. With Bitcoin, there is a one-to-one correspondence between inputs and outputs of transactions. Suppose there is a transaction X with an output X1 that sends 1 satoshi to Alice's address A, and everyone agrees that output X1 is colored so that ...


2

Yes, you can use your Bitcoin addresses to receive Counterparty tokens. Make sure you have the private keys to your addresses backed up. Counterparty is a layer built on top of the Bitcoin protocol which basically allows you to embed data into the Bitcoin blockchain. This data can be used to represent tokens which will be recognised by the counterparty ...


2

Unclaimed Open Assets units are indeed destroyed, which (depending on the use case) could be a problem for you. Other protocols such as CoinSpark (ours), Counterparty and Omni Layer don't have this accidental destruction problem, because the assets always go somewhere by default, if they are not explicitly reference. In CoinSpark this default place is the ...


2

Mastercoin (now called Omni) had an uneasy relationship with the bitcoin core team early on. Some of them objected to our injecting metadata into the bitcoin blockchain to do advanced transactions. Because of their objections, we were concerned somebody might try to identify and censor our transactions. That didn't actually happen, thankfully. I haven't ...


2

Agreeing with all of the above, especially the point about seeing the native tokens in these systems as a form of fuel, rather than purely and simply a currency. Nxt has taken a couple of approaches to mitigate the issue of having to use native NXT tokens to pay tx fees (even if you're only trading/using Nxt-based Assets), and to make it as easy as possible ...


2

There are at least 5 different colored coins implementations on bitcoin that I'm aware of. The ones in active development include: Colu - They recently showed how their implementation can be used with the lightning network. https://www.colu.com/ Chromaway - They've been running a lot of pilots with various banks and whatnot. http://chromaway.com/ There's ...


2

This is a tough one, and I think it's possible to find a solution to it, but it will depend on what your application is and the tradeoffs you're willing to accept. Today: Using Bitcoin, you could fund an account for your users, but it is far from ideal. I have done this before, I do not know of a service that offers it, and I don't recommend it. Pretty ...


2

On the Waves platform, it is possible for transaction fees to be paid in tokens. To do this, a full node with mining capabilities (anyone can run a node, but at least 10,000 WAVES is required to generate blocks) has to accept the particular token as a fee. Thus, Burger King Russia could either host a full node or persuade another full node to accept ...


2

I have solved my problem with a lot of debugging and help from the community on IRC irc.freenode.net #bitcoin-dev and also from people on the bitcointalk thread I started about this Topic. I invite anyone having similar Copay Multisig Omni Colored Coins Recovery Issues to have a look at the bitcointalk thread here: https://bitcointalk.org/index.php?topic=...


1

Yes. That is exactly correct. A valid CC tx is a valid Bitcoin tx with extra structure that only CC nodes see. Bitcoin nodes do not validate the color aspect.


1

I think you are correct. It is perfectly reasonable that a colored-coins transaction is malformed while its bitcoin-level data is correct. Indeed, most colored-coins transactions are legal bitcoin transaction in any case. Think of wallets like Colu, which cover every transaction for you. It's very unlikely that something done automatically comes out ...


1

I noticed that even if I created an account for my customers, they have no way of sending that token back to me when they wish to redeem it as these platforms require their transaction fees be paid in their native currency. That's kind of true for Counterparty. The transaction fees are paid only in Bitcoin (which is a native currency of Counterparty), but ...


1

Unfortunately, fees are part of the protocol and cannot be avoided. However, there are some platforms that release users from this burden. For instance, as far as I know, the Colu platform (based on the Bitcoin blockchain) automatically covers all transaction fees (for free). Hope this helps


1

This was a shortcut to easily identify all Mastercoin (now Omni) transactions. We considered removing it when we were concerned our transactions might be identified that way for censorship, but that never happened thankfully. If you list all transactions to 1EXoDus, you list all transactions in the Omni protocol.


1

The token in the blockchain represents a physical item, the same way that a paper document may represent a contract or ownership of a house.


1

I don't think so, because the use case of, "I need to pay (the equivalent of) five dollars to buy this comedian's work is more common than the use case of "I need to store this 128-bit string for an indefinite period of time." Prediction: By the end of 2016, transactions intended to hold metadata instead of actually sending coins will make up less than 10% ...


1

The OP_RETURN in output=0 (1st position), we have the hex data 4f41010002016f06753d32322631 which decodes to OA\x01\x00\x02\x01o\x06u=22&1 in Python, which seems right, since OA precedes open assets hex data. The data for asset id is in that hex code. Everything is. The other inputs are inconsequential. The reason the other outputs use 600 satoshis (฿ ...


1

This question is too vague, like asking list of companies that use arrays in programming. Colored coins are programming abstractions(just a type of data structure) and when truly used for a technical reason(not for crowdsale) they are under the hood. (At work, I have used it as a mechanism to account for scarcity of a resource.)


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OpenAssets and CounterParty are the most similar projects I can think of, but I'm sure it doesn't have all of the features you are looking for. You may also be interested in Overstock's Medici project.


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You trade a bunch of stuff, you wind up with more dollars than you started with, you have a taxable profit.


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