You are using an escrow in all cases: - Mined blockchain: miners - Federated chains: signers - e-cash: issuer (and maybe additional auditors) Once you enter a contract that may result with your ownership of an issued asset, your are implicitly trusting the issuer to honour it.
I understand that. My point is, that perhaps Bitcoin gives you enough infrastructure that something that was previously didn't pass cost/benefit threshold, now does.
-
-
Using Bitcoin network is problematic because colored coins could mess up incentives, but what
@brucefenton did is to create an independent shitcoin specific for this purpose, so he cannot leverage Bitcoin existing infrastructure/security. -
I don't have a particular horse in this race, just find Bitcoin-as-infrastructure fascinating. If the assets the coloured coins represent would be denominated (and traded) in BTC, it wouldn't mess up incentives.
-
Some knowledgeable people think different...https://twitter.com/pwuille/status/981868137741258752 …
-
That's why I said denominated in BTC. Also since Bitcoin is permissionless if there exists such an incentive attack it will happen sooner or later and dissuading legit use cases is probably not the best nor strongest defence.
-
Not sure what you mean by 'denominated in BTC'. I don't think it is easily exploitable as an attack but seems to be a reason to discourage that path. I don't have any deep knowledge about that matter anyway.
-
I mean that for each coloured coin transaction there is a counterparty transaction in BTC ("going the other way").
-
I don't think I follow. How would you restrict transactions involving only the colored coin or trading between issued assets?
-
You (ie. the lower-level chain) can't, the cc implementator can. I'm just exploring how you can make a well-behaved cc implementation for assets. This is in no way a claim that all cc are legit, just that it can be and that it can make economic sense to do it.
End of conversation
New conversation -
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.