[Bitcoin-development] Feedback request: colored coins protocol

Hi, I am the lead developer of Coinprism , the new colored coins web wallet. After some discussions with the other people involved with colored coins, I wrote a specification document describing the colored coins protocol that we are using in coinprism. I am looking fo

Re: [Bitcoin-development] Feedback request: colored coins protocol

On 04/06/2014 01:59 PM, Flavien Charlon wrote: > Do you think this is the right approach? No, I'm afraid it has significant flaws. The two chief flaws are (1) there is absolutely no reason to include asset tagging information if it is not validated - that just bloats the block chain, and (2) you s

Re: [Bitcoin-development] Feedback request: colored coins protocol

Thanks for the feedback Mark. > (1) there is absolutely no reason to include asset tagging information if it is not validated Sure, there is a good reason to include it in the blockchain: so that clients don't need external information to recognize colored coins. Also, I'm not sure what you mean

Re: [Bitcoin-development] Feedback request: colored coins protocol

> > Have you seen the padded order-based coloring scheme worked out here? > > https://github.com/bitcoinx/colored-coin-tools/wiki/colored_coins_intro Just to clarify, a variant of padded order-based coloring called epobc is already implemented in coloredcoinlib (which is used by ngcccbase/ChromaW

Re: [Bitcoin-development] Feedback request: colored coins protocol

On 4/7/14, Flavien Charlon wrote: > Also those 54 BTC (actually 5.4 BTC if the dust is now 540 satoshis) become > part of the capital of the company, and can always be recovered by > uncoloring the shares. It's an investment, not an expense, so I think it is > acceptable. This doesn't make much s

Re: [Bitcoin-development] Feedback request: colored coins protocol

Jorge, they'd have to be. Otherwise, assuming the price of the share goes low enough, you could buy a share of the company, melt the gold plate, and sell it for a profit. If the gold is part of the capital of the company, the cheapest a share can be is the price of the gold on which the stock certi

Re: [Bitcoin-development] Feedback request: colored coins protocol

Flavien, capital is wealth or resources available for the stated purpose of the company. These bitcoins represent nothing more than a speculative floor owned by the investors, not the company. On 04/07/2014 07:00 AM, Flavien Charlon wrote: > Jorge, they'd have to be. Otherwise, assuming the price

Re: [Bitcoin-development] Feedback request: colored coins protocol

Ok, I guess I'm not using the proper terminology. It would be listed on the "Asset" section of the company's balance sheet, is what I meant. On Mon, Apr 7, 2014 at 4:06 PM, Mark Friedenbach wrote: > Flavien, capital is wealth or resources available for the stated purpose > of the company. These

Re: [Bitcoin-development] Feedback request: colored coins protocol

On 4/7/14, Flavien Charlon wrote: > Ok, I guess I'm not using the proper terminology. It would be listed on the > "Asset" section of the company's balance sheet, is what I meant. No, it's an asset for the owner of the share, not the company, just like the gold plates are not assets for the compan

Re: [Bitcoin-development] Feedback request: colored coins protocol

An IOU written in a gold plate sure makes no sense. I see what you are saying, the inconvenience comes from the fact that the buyer has to buy some amount of BTC at the same time as he buys a share. That's why I was making the point that you could have a colored coin representing a single share, a

Re: [Bitcoin-development] Feedback request: colored coins protocol

This is beyond ridiculous... Color kernel which works with padding is still quite simple. I think we have extra 10-50 lines of code to handle padding in coloredcoinlib. Essentially we have a couple of lines like this : value_wop = tx.outputs[oi].value - padding (value_wop means "value withou

Re: [Bitcoin-development] Feedback request: colored coins protocol

Thanks for the valuable feedback. I see there is a strong concern with requiring a large BTC capital for issuing coloring coins, so I am now in the process of modifying the specification to address that. I will post an update when this is finished. By the way, padding doesn't solve the issue entir

Re: [Bitcoin-development] Feedback request: colored coins protocol

By deciding to use a decentralized network to hold your assets, it may make more sense to emit less shares. Two billion shares backed by coloured coins makes less sense than a more conservative number, like 10,000. That costs a negligible amount of money, at least until the day when Bitcoin takes o

Re: [Bitcoin-development] Feedback request: colored coins protocol

On 04/10/2014 05:19 AM, Flavien Charlon wrote: > By the way, padding doesn't solve the issue entirely (issuing 10 billion > shares sill takes you 100 BTC, even with padding and 1 satoshi = 1 > share), so I am going for the solution where the asset quantity of every > output is explicitly encoded in

Re: [Bitcoin-development] Feedback request: colored coins protocol

> At this point, I don't think what you are doing is even colored coins > anymore. You might want to look into Counterparty or Mastercoin. > Nope, it's still colored coins. The difference between colored coin model and Mastercoin model is that colored coins are linked to transaction outputs, while

Re: [Bitcoin-development] Feedback request: colored coins protocol

I have updated the spec . > This is an interesting approach, but OP_RETURN size limitations can be a significant problem for some kinds of applications. This is correct, the number of colored outputs you can ha