Tokens vs Colored Coins

[Abiky]

We've seen many tokens being issued on the Ethereum blockchain lately, which shows the huge interest there is from companies, startups, and businesses alike into launching their own token for various purposes in real life. However, there are also a few Colored Coins which live on the Bitcoin blockchain which have been proven to become extremely popular among the masses (like Tether for example). As such, it's only a matter of time before either of these solutions would take the world by storm.

Tokens which rely on smart contracts have their advantages, while Colored Coins which live on-chain, have their advantages as well. Therefore, my question is which of these is better? Will it be tokens or colored coins? Considering that Colored Coins are issued directly on the blockchain without requiring knowledge on coding (unlike smart contracts), they may be the best.

Nonetheless, what are your thoughts about this?

[qazgroup]

If you are asking with reference to the investors point of view then it is difinitely eth based tokens that i like the most, all you need is a mew wallet and decentralized exchange to be in control, this is the basic point i only invest in tokens now.

[Abiky]

If you are asking with reference to the investors point of view then it is difinitely eth based tokens that i like the most, all you need is a mew wallet and decentralized exchange to be in control, this is the basic point i only invest in tokens now.

I was referring to the technical aspects of Tokens vs Colored Coins. However, in the investors point of view, there's no doubt that ERC-20 and ERC-721 are the most popular and widely adopted token standards in the world. In the case of technical aspects, I believe that it's much more flexible to work with Tokens than Colored Coins. In the case of the Bitcoin Cash blockchain, now it's possible to create Colored Coins that would live on-chain. While they haven't been adopted to a large scale like Ethereum tokens, they're still a decent choice for developers to consider.

Therefore, Colored Coins living within the Bitcoin Cash blockchain (or under Omni/Counterparty within Bitcoin) could serve as nearly the same purpose as Ethereum Tokens. However, in terms of technical aspects, I'm not sure which one is exactly the best. Perhaps, Colored Coins might be the safest approach to launch any kind of digital asset without risking the main blockchain network. It's been seen that Tokens on the Ethereum blockchain have posed a risk to the main chain due to bugs or flaws in them.

Nonetheless, Tokens would be the number one choice of developers (for now) due to their extreme popularity and flexibility.