The first online colored coins wallet, Coinprism, went live this week, kicking off public experimentation with the exchange system that aspires to take Bitcoin trading to the next level. As if Bitcoin weren’t useful enough already, crypto-currency developers have come up with the colored coins system to trade not only money, but literally anything else you want while piggybacking on Bitcoin’s security mechanism. Instead of representing money like Bitcoins do, colored coins represent property. The owner of the coins decides and defines for others what they represent. A colored coin can be a car, for example. Colored coins can be stock shares in a startup company you want to found. Colored coins act as a voucher or an IOU for some real-world asset. They can be purchased (with bitcoins, for example), or traded for other colored coins.
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