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 this very complex subject.
To achieve the goal of issuing, tracking and transferring virtual representations of off-chain assets, several startups have emerged to provide watermarking services, commonly referred to as “Blockchain 2.0,” the paper notes.
https://www.cryptocoinsnews.com/r3-group-paper-colored-coin-watermarking-wont-secure-off-chain-assets/#
