if a colored coin can represent anything, what would happen if a colored coin were to represent litecoin? or multiple cryptocurrencies? or all cryptocurrencies?
could you introduce a new coin with no mining simply by piggybacking off of current bitcoin mining, where all new bitcoin blocks would be colored to represent your new coin?
if I sent a colored bitcoins that represents a litecoin, the litecoin never moves but still changes ownership. sounds a lot like mastercoin.
what if the bitcoin and litecoin were colored to represent each other? could you send either one and essentially be sending both? could you expand on the capabilities of a cryptocurrency by coloring it with capabilities of another cryptocurrency?
Colored coins can jump on any alt, but representing an alt as a colored coin seems a bit redundant imo, but yes it can be done. As far as Mastercoin features go it is to my understanding that colored coins can implement all of mastercoin features should they be willing to increase lag time of 3 confirmations, make it a nightmare for backwards compatibility, etc.
