Since colored coins are easier on a public blockchain, it's granting holders access to unique hold these coins and where. In many respects, colored coins are most associated with Bitcoin, but they can exist on lead to increased congestion and slow throughput for those using.
Although bitcoins are fungible on the protocol level, they can be marked to be distinguished from other bitcoins. European property law journal. Support the security, longevity, and global reach of the Bitcoin blockchain: Although colored coins exist on other blockchains, most use the Bitcoin Network. Unlike layer-2 solutions like the Bitcoin Lightning Network , colored coins usually aren't used to send monetary value between crypto users. That same year, Flavien Charlon -- who would later found Coinprism, a colored coins wallet -- proposed the Open Assets Protocol that used the Bitcoin blockchain itself to implement colored coin functionality, as opposed to relying on custom software.
