R3 Group Paper: Colored-Coin Watermarking Won't Secure Off-Chain Assets
R3, a bank consortium working to create industry standards for using block chain technology in banking, has released a paper claiming efforts to modify public block chains to secure off-chain assets using colored coins and metacoins do not provide secure, legal settlement finality of those assets. Titled "Watermarked Tokens and Pseudonymity on Public Block Chains," the paper argues that a distributed public ledger that secures off-chain assets cannot be both legally authoritative and censorship-resistant. Written by R3 researcher Tim Swanson, the 78-page paper goes into a lot of detail on....
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Colored Coins is an advanced application of Bitcoin’s blockchain. The protocol is considered to have Bitcoin 2.0 properties, as it expands the use of Bitcoin’s blockchain. Colored Coins are tokens that are marked to represent real world assets. They can be used to prove ownership of cars, real estate, precious metals, etc., and are pretty easy to issue. While there aren’t very many cryptocurrencies that are Colored Coins, the ones that are colored offer some interesting features. The most common use of Colored Coins is for companies that wish to host an IPO. Setting up an IPO with Colored....
Colored coins allow issuers to add an additional layer of value to bitcoins in a rainbow of different ways. Colored coins are part of an Open Assets Protocol, which means you can attach an additional value to bitcoins. If you want to be able to carry a stable amount of cash with you, but with the simplicity of transactions that Bitcoin offers, now you can. You can now have a colored coin equal one dollar, euro, pound… Since colored coins tie an additional value to Bitcoin, governments or banks can issue Colored Coins that represent represent fiat currencies, thus using the Bitcoin protocol....
March 22, 2014 (Dublin, Ireland) - The Irish company behind the Bitcoin prediction market Predictious is announcing the private beta launch of a new colored coin web wallet Coinprism. Colored coins use Bitcoins to represent other assets and store them on the Bitcoin Blockchain. Colored coins can be used to represent anything, such as stocks, bonds, smart properties, securities, precious metals, commodities, other currencies (such as dollars, pounds or euros), and even other crypto-currencies. A company which wants to do an IPO can do so with colored coins in a matter of minutes and....
In a move that is sure to bring more attention to the umbrella of colored coins projects currently in development on top of the Bitcoin protocol, issuers of colored coins can now list their assets on MasterXchange. This online exchange was started as a hub for trading bitcoins and mastercoins, and it has more recently branched out into offering many other types of tradeable assets on the platform. Various tokens issued on top of Counterparty and Mastercoin have been traded on MasterXchange in the past, but this is the first time that assets issued in the open assets protocol will be listed....
The colored coins space is certainly heating up with leading start-up Colu raising $2.5 million from large investors such as Aleph, Spark Capital and BoxGroup. The growth in the space has not been lacking in innovation. Start-ups such as Shocard, which aim to replace cumbersome bank processes to GetGems – a blockchain based social media platform are proof that new, out-of-the-box uses for the blockchain are yet being discovered by the day. In a recent paper titled, “Watermarked tokens and pseudonymity on public blockchains”, Tim Swanson of R3 CEV highlighted the main pain points of using....