Colored Coins and Exchanges

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Location: Cyprus

Hi guys,Sorry but this might be a stupid question but...In the light of another exchange being hacked (cryptorush) I have this question... does colored coin development offer the ability for an exchange to 'color' its bitcoin until it withdrawn and is' uncolored' much in the way that fiat currency can be covered in ink when stolen and rendered useless.

Posted on March 26, 2014 at 7:35 PM

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jamtoday

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Posts: 12

@mazzaneo I believe this sort of thing is possible, and there was some discussion about this type of idea surrounding the Mt.Gox fiasco and the idea of "Goxcoins" that may be owned by a hacker or government entity. I think rather than uncolor them (which would require removing data from the blockchain which you can't do), it would be better to "recolor" them so that the ink becomes "invisible ink" or whatever works for that metaphor.
I do like the ink metaphor generally though because it is one that everyone understands from movies and such.

Posted on March 26, 2014 at 8:14 PM
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mazzaneo

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Location: Cyprus

That would be a great deterrent for hackers. If the exchange was had the only key to change the color and coins of a specific color were useless until changed.

Posted on March 26, 2014 at 10:28 PM
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Cryptonite

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Very interesting concept.

Posted on March 27, 2014 at 2:02 AM
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