Colored coins functionality will be added to EON testnet during the next update
Testnet is the early version of EON, flexible new generation blockchain created by Exscudo. On January, 25 EON testnet will be updated, and new features will be introduced, including the colored coins functionality.
What are these colored coins?
Colored coins are tokens that are marked to represent another assets. They do not have their own real value. In Exscudo ecosystem colored coins are needed to create equivalents of existing crypto or fiat currencies and assets. This way users can work with different currencies with the same rules.
How colored coins are managed in EON network?
In EON network any user or, more particularly, any account can issue colored coins independently. The network monitors coins amount and precision, but coins’ essence does not make any difference for the net. It means, the network only stores the identificator of this or that colored coin which numerical component is equal to that of the user who issued the coin.
What are the rights of the issuing account?
Account which creates a new coin manages the emission. After the initial emission issuer can change the overall amount the coins. To reduce or to increase the overall amount of the colored coins their issuer have to create a corresponding transaction. The new emission works with the account of the issuer, adding or removing coins from it. It is possible to eliminate all the issued coins as well. However, this requires the issuer to have all the issued coins in his account for the moment of elimination operation, and this is not an easy thing to do if the coins are already widely used in the net.
How the value of colored coins is determined?
Colored coins represent no value for the network, but they do represent value for the services they are used in. In Exscudo the value of colored coins is determined by the exchange. The exchange choses which coins to trust, and this is essentially their value.
What functions of colored coins users will be able to test?
Basically, users will be able to test all of the functions that the colored coins will have in the main net: issue coins, change their amount, and make another operations like transactions. Besides, the features that were introduced to the testnet can be also applied to colored coins. For example, users can protect their colored coins transactions with multisignature.