Bitcoins, colored coins 2014-01
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A not too technical introduction to colored coins and using Bitcoin as a platform. www.qllector.com - [email protected]
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A not too technical introduction to colored coins (and about using Bitcoin as a platform). As held at the Bitcoin Startups Berlin Meetup at betahaus
Transcript of Bitcoins, colored coins 2014-01
A not too technical introduction to colored coinsand using Bitcoin as a platform.
www.qllector.com - [email protected]
?what is it anyway
?what is it anyway
a currency1
● crypto currency ● decentralized● deflationary ● fiat
a currency1
● crypto currency ● decentralized● deflationary ● fiat
Fiat
money without
intrinsic value.
so what?
Troll!!
@*%XXX
Me feels A bit
volatile t’day.
asset/value store2
● crypto currency ● decentralized● deflationary ● fiat
asset/value store2
● crypto currency ● decentralized● deflationary ● fiat
From bulb to
town house to
tulip to bulb ...
a platform3
● crypto currency ● decentralized
a platform3
● crypto currency ● decentralized
a technology!
a network!
a software!
a platform3
● crypto currency ● decentralized
Bitcoin is the first plausible proposal for an economic protocol for the Internet
a technology!
a network!
a software!
http://www.youtube.com/watch?v=fmFjmvwPGKU
http://coloredcoins.org/
colored coins
key points
The idea behind colored coins is to separate the bitcoin network and its underlying cryptographic technology from the bitcoin as a currency unit and the surrounding ecosystem, using the Bitcoin network simply as a mechanism to securely send transactions and avoid double spending.
White paper v2.0
I enable other crypto stuff
on top of the mighty network.
Me too!
I am THE cool crypto currency.
I run on top of the mighty network.
(BTW, My name is Bitcoin as well.)
Protocol only is
just fine with me ...
I am the mighty
Bitcoin Network.
Could an alternate colored coin be better for colored coins?
From an implementation point of view, certainly. An alternate cryptocurrency could be specifically designed to transport colored coin values.
However, Bitcoin has the largest hashing pools, which means Bitcoin is more secure and reliable. An alternate cryptocurrency would have very hard time providing the secure and stable distributed computational network that Bitcoin provides.
FAQkey points
Are colored coins tied directly to particular Bitcoins?
Bitcoins do not have an individual existence ... a colored coin cannot be tied to a particular Bitcoin.
Most generally, Color Coins only require an objective and unambiguous method for calculating the colored coin values available on the inputs of a transaction, and an objective and unambiguous method for calculating the colored coin content of each output on a transaction.
key points FAQ
redgreengreen
if input is color coded ...
… then color code output.
key points White paper v2.0
In order to issue a new color, one must release the coins of that color by creating a genesis transaction.
● Non-reissuable colors - in the non-reissuable case, the inputs are irrelevant; the issuer will not have any power once the transaction is issued, so all that matters is the transaction itself (specifically, its outputs).
● Reissuable colors - here, the issuer should choose one secure address as an “issuing address”, and set input 0 of the transaction to come from that address. Later on, the issuer will be able to issue more units of the color by creating another genesis transaction with the same address at input 0.
How are colored coin Coins different from regular Bitcoins?Bitcoins only represent Bitcoins, while colored coin coins are used to represent other assets.
For example, a colored coin might represent a stock in a company, or a gram of gold, or a US Dollar. As long as one or more parties are willing to recognize the backing of a colored coin, that particular colored coin can be used to trade the underlying assets as easily as Bitcoin can be traded.
FAQkey points
legal
technical
else
some caveats123
legal some caveats1For example, a colored coin might represent a stock in a company, or a gram of gold, or a US Dollar.
stock exchanges:
Highly Regulated!Forex! Yikes!
commodity trading:
Highly regulated!
technical some caveats2
else● competing efforts● internal squabbling● differences with
Bitcoin core team (e.g. dusting)
some caveats3
