A New Perspective on Blockchain / Improving Colored Coins Idea

[suhabardakci]

Before working on the ethereum protocol, Yoni Assia & Vitalik Buterin & Meni Rosenfeld published the whitepaper of a project called colored coins.
Contrary to the project title, the project is based on coloring TXs, not coins (bitcoins), since bitcoin is originally designed to compare UTXO rather than distinguishing wallet balances.

By re-examining the wallet approach from an orthodox perspective, new consensus algorithm approach with the proof of having crypto-assets, each of which is uniquely issued and have unique identifier will be promising.

I am currently working on this and I believe that redeveloping the bitcoin system to handle wallet balances can easily decentralize any real-world asset.

If anyone feels similar about this, they can share their ideas.

I will publish a pre-whitepaper about this in the coming weeks.

[digaran]

Really boring whitepaper, it just describes what ETH can already do, smart contracts, but I don't really think we want to add car deals, company shares, stock bonds etc on top of the Bitcoin's blockchain. This may sound something new because of the name colored coins, but is just another form of ordinal/ NFT, and that should remain in alternative coin's world, it will ruin and congest the network while there are already enough infrastructure for this on other networks.
Using Bitcoin as a ladder to climb up high and be seen, is not cool. Find something else to climb.

[joniboini]

I am currently working on this and I believe that redeveloping the bitcoin system to handle wallet balances can easily decentralize any real-world asset.

Can you do an ELI5 of your idea because I can't really understand how it actually works or how it is competitive over other solutions to "decentralize real-world assets"? If your goal is just tokenization why not use stuff like side-chain or something similar? I don't think most people would agree to change how the system works just because you want to print tokens of your cow.

[moneystery]

Really boring whitepaper, it just describes what ETH can already do, smart contracts, but I don't really think we want to add car deals, company shares, stock bonds etc on top of the Bitcoin's blockchain. This may sound something new because of the name colored coins, but is just another form of ordinal/ NFT, and that should remain in alternative coin's world, it will ruin and congest the network while there are already enough infrastructure for this on other networks.
Using Bitcoin as a ladder to climb up high and be seen, is not cool. Find something else to climb.

quite agree with what you said. we have seen how many projects want to represent real-world assets but in the end all these projects end up being a scam because this is not possible and it is difficult to represent real-world assets directly.

moreover, this idea wants to redevelop the bitcoin system which could add burden to the bitcoin network which is already congested by ordinals. compared to adding load to the bitcoin network, it is better to adopt the ethereum or bsc network, or other chains which are more scalable.

[Yamane_Keto]

Using Bitcoin as a ladder to climb up high and be seen, is not cool. Find something else to climb.

If side networks were developed, such ideas could be built, such as a third-layer network, but in any case, assigning a new value or a new token represents the transition from Bitcoin to altcoins, as long as that token is not Bitcoin or a mechanism for locking Bitcoin.

Projects based on these ideas require time for adoption, which may not happen, so the best solution is to wait to open new possibilities through side networks.

[yhiaali3]

By re-examining the wallet approach from an orthodox perspective, new consensus algorithm approach with the proof of having crypto-assets, each of which is uniquely issued and have unique identifier will be promising.

As you can see, I don't think your idea will be welcomed by the Bitcoin community. We've all seen what ordinal/NFT causes with network congestion, high fees, and delays.

Therefore, you should think before starting your project: What are the negative and positive effects of the project on the Blockchain? What are the potential positive and negative effects in the short and long term? What benefit can the “new consensus algorithm approach” as you call it bring to blockchain?

[goldlatinum]

Really boring whitepaper, it just describes what ETH can already do, smart contracts, but I don't really think we want to add car deals, company shares, stock bonds etc on top of the Bitcoin's blockchain. This may sound something new because of the name colored coins, but is just another form of ordinal/ NFT, and that should remain in alternative coin's world, it will ruin and congest the network while there are already enough infrastructure for this on other networks.
Using Bitcoin as a ladder to climb up high and be seen, is not cool. Find something else to climb.

we are still waiting for the paper