Colored Coins News

Colored coin is a method used to represent and manage real world assets with the Bitcoin blockchain. Bitcoin’s scripting language allows the encoding of some information into the blockchain along with performing transactions. Colored coins are Bitcoins transferred within a transaction that has additional info. The information added to a colored coin may represent such assets as stocks, promises, transaction info, etc. Those are real world assets that are —- once included in the blockchain — immutable, easy to transfer, transparent and secure. For example, a restaurant can issue a promise to offer a free dinner to token holders by making a Bitcoin transaction that has additional information about the terms of such an offer. Companies may issue colored coins with blockchains of many platforms. Colored coins can also be used with smart contracts, making a coin available for use only if specified terms are fulfilled.