Are color coins technically compatible with POS systems like Nu?
I think PoS system Nxt’s Asset Exchange (AE) is based on color coin technique, so I look forward to color coin implementation in Nu system.
I am working on a hybrid exchange model where users can exchange an actual blockchain token (BTC, NBT) for colored-coins that represent tokens from another chain. Essentially it is a variation of “Atomic Cross Chain Trading”, and in this case it is “Cross Chain Pegging”.
An example of the technique for Nubits on the Bitcoin Blockchain would be:
1.Prepare Bitcoin genesis TXN output for Coloring 2.Burn NBT with message holding (Or hash of) the prepared BTC txn 3.Release Colored asset on Bitcoin Blockchain
A MetaData purposed blockchain like Florin Coin or Factom could help this along. Factom will be ideal once it is fully operational.
What are you thoughts on this technique? Is that a sound way to create pegged color coin assets on other blockchains? Is this method traceable enough for provability without misinterpretation? This could very well be how NXT and BTS do some of there smart features but I have not seen it discussed explicitly among the color coiner discussions.
The benefits of this asset is it keeps user experience for new users to blockchains clean and less complex. Also exchanges could concievably hold the colored coin assets on a chain whos security features they understand well (Multisig) or are sufficiently developed for advancement (Threshold signatures on Bitcoin).
That said, physical gold is always appraised as higher in value that gold sold on paper. Then again, anybody with the Color Coin issuance metadata can check the vault for themselves.
“Atomic Cross Chain Pegging” would be were tokens are burned on both chains, etc…
Is Nu capable of ethereum style contracts?
I assume if you can port counterparty system of smart properties to Nu then yes.
Counterparty is a Turing capable translation layer similar to Ethereum VM in function.