Introducing Colored Coins: a Bitcoin Cash token implementation
After developing CashPay and adding the Spend and Replace feature, Cryptonized Cash (CC) is the next addition to our growing list of ‘firsts’. As of today, we’ve started the first iteration of the Cryptonized Cash (CC) incentive program on cryptonize.it Users get Cryptonized Cash (CC) accredited for buying any Bitcoin Cash merchandise. Receivers of Cryptonized Cash can use it to get discounts or buy CC exclusive products. Further utility will be added as cryptonize.it grows. There will be a total of 1 billion CC, without the ability to add more in the future. The tokens are always redeemable on cryptonize.it
The Colored Coins protocol
The Colored Coins protocol started in 2013 as a method to push metadata to the Bitcoin blockchain, and evolved over the years to an ecosystem for digital tokens.
Colored Coins creates a framework for digital tokens on Bitcoin (Cash). It’s 100% open source, on-chain and ready to be used right now permissionless.
One of the most important questions to answer when proposing adoption of a certain framework is what are the use-cases? Luckily with colored coins, the answer is endless. Colored coins can represent vouchers, coupons, tokens, altcoins or other assets. You can tokenize whatever you want.
The first real-world use-case is Cryptonized Cash (CC), an incentive program on cryptonize.it which is live right now. It rewards customers with CC which can be redeemed to buy products at a discount the next time you order.
The Colored Coins protocol is SPV friendly in the sense that most wallet providers will not have much difficulty implementing it. Wallets like Electron Cash already have most infrastructure in place. The CashPay wallet will enable colored coins to allow users to issue and store colored coins, but Colored Coins can also be used with a web wallet. Colored Coins are very easy to integrate into existing wallets and we expect that other wallets will start to support Bitcoin Cash tokens in the near future. More information on how to implement colored coins can be found here: https://github.com/Colored-Coins/Colored-Coins-Protocol-Specification/wiki/Benefits#support-for-thin-wallets
The Colored Coins protocol will be available on testnet within days. The implementation will have a wallet so anyone can try out coloring coins and will soon be followed by livenet including a wallet and explorer. Check out the Cryptonized Cash website for more information.