During the Bitcoin 2013 conference, there was mention of colored coins.
I'm still new to forums and have a hard time searching the information I need so this may already be asked. But here it is goes.
My understanding is that colored coins are just another layer built on top of the protocol that can allow you to take a bitcoin and divide it up into tinier pieces (100 million of them) and 'mark' or label them as something.
Say, someone wanted to issue shares for a company.
My question is this. If a town wanted to just create its own currency, and take one bitcoin and 'color' (label) each satoshi in that bitcoin and call it a Foxy.
1. Then at the most there will ONLY ever be 100 million Foxies??
2. And those foxies would not really be further divisible into smaller units??
3. So if the town now had a huge influx of people or the amount of goods and services they were trading went really high, then there really wouldn't be a way for them to go past 100 million units? (i.e, the unit is not further divisible now). i.e, is it technically possible to be able to trade in 'decimals of foxies'?
Any guidance both technical and from an economics standpoint are welcome and appreciated!
Kawal
http://www.swatopia.org
