Coinprism – Wallet technology for Colored Coins
Coinprism is an innovative wallet that combines the power of the bitcoin blockchain with the immense possibilities of the colored coins features.
Colored Coins is a way to issue and transfer any assets on the Bitcoin blockchain. Colored coins can be used to represent anything, such as stocks, bonds, smart properties, securities, precious metals, commodities, other currencies, and even other crypto-currencies. A company which wants to do an IPO can also issue Colored Coins almost instantaneously and practically for free; Coinprism can be used to create and issue shares. The shares can then be exchanged as easily as Bitcoins through the Blockchain, across the world, instantaneously and with minimal fees, and that’s the real beauty of the Coinprism technology.
Colored Coins also enable people to create smart properties. A deed for a house can be represented on the Blockchain as a colored coin. The owner of that coin is then the legal owner of the house. Transferring ownership of the house becomes as simple as making a Bitcoin transaction.
Colored coins are secured by the Bitcoin Network as all the transactions are using the Bitcoin blockchain. Transacting with colored coin is then as secure as transacting with Bitcoins.
Coinprim has also released a multiwallet version that enables a new Bitcoin dividends functionality on Coinprism. The concept is simple, you select an amount of Bitcoin, and that amount is automatically split amongst the owners of a particular asset, of which you may or may not be the issuer. It supports asset dividends as well. That means users have the opportunity to earn and transact the dividends paid using any asset. This also enables several interesting options beyond the ability to pay interests or dividends, such as the issuance of futures over a certain profit value of an asset.
How it works?
Coinprism tried to work on a consensus scale platform by introducing the “Voting” option; users can issue a “vote coin”, and distribute it to all owners of a particular asset. The owners of a “vote coin” are then instructed to either send it to a special Bitcoin address called the “Yes” address, or another one called the “No” address. At the end of the vote, the number of “vote coins” at the “Yes” and “No” addresses are counted, and are used to determine the result of the vote. Everything is transparent, and everyone can see the number of yes and no votes, so there is no risk of cheating. The “vote” tokens are single-use; meaning users get a new asset type of each vote, so they can’t save their vote coin for next vote, as it will be a different asset. The organizers of the vote can also “uncolor” and recycle the votes sent to the “Yes” and “No” addresses to recover the bitcoins that got “colored”. It’s always a reversible process that works both ways.
Smart property distribution
Imagine a token representing a subscription for a stadium. Every week, each owner of a subscription of this specific token receives a new asset representing a ticket for next game. It is then possible to resell the individual ticket without reselling the subscription.
Users are also able to transfer the ability to issue a particular asset to a new key. In this case they would create a new asset using the new key, and distribute a dividend such that every one old asset unit receives exactly one new asset unit. They can then mark the old asset as invalid, so that every other participant user knows they must now use the new asset. Dividends can be determined using any block height. That means users will be able to pay dividends to people owning a particular asset on a certain arranged schedule that should be kept or else the asset goes obsolete. If an asset has been sold since then, the old owner will still receive the dividends. This is possible because the blockchain contains the history of all transactions.
While similar software, much like Counterparty, is being used with such uniform options but with higher costs, Coinprism open Assets works directly on top of the Bitcoin protocol and doesn’t need any intermediate currency, so there is no additional fee for sending asset dividends. With such wonderful possibilities introduced by the Coinprism multiwallet, this is definitely a project to keep track.