Colored Coins Now Tradeable on MasterXchange

October 14, 2014 10:14 UTC

In a move that is sure to bring more attention to the umbrella of colored coins projects currently in development on top of the Bitcoin protocol, issuers of colored coins can now list their assets on MasterXchange.

This online exchange was started as a hub for trading bitcoins and mastercoins, and it has more recently branched out into offering many other types of tradeable assets on the platform. Various tokens issued on top of Counterparty and Mastercoin have been traded on MasterXchange in the past, but this is the first time that assets issued in the open assets protocol will be listed on the exchange. In fact, this is the first exchange of any list so-called “colored coins” that are issued via the open assets protocol.

Listing Your Asset on MasterXchange

Listing an asset on MasterXchange is a ridiculously simple process. All you need to do is visit the MasterXchange website and enter the asset ID of your particular colored coin. The process is quite similar to listing a Counterparty asset on MasterXchange. Once you’ve entered the asset ID and selected “Coloredcoin” as the protocol, a new market will instantly be created for your colored coin asset.

Open Assets vs Other Colored Coins Platforms

Unlike other variations of the colored coins concept, there is currently no method of trading colored coins issued on the open assets protocol in a decentralized manner. This decision was made, at least in part, because centralized exchanges are still a much more practical option when trading any digital asset. Exchanges that are built on top of blockchains tend to be quite slow, so the team behind the open assets protocol is focused on creating a working token system more than anything else. One of the main perks of the open assets protocol over other colored coin implementations, such as Counterparty or Mastercoin, is that there is no need for another token, such as XCP or MSC. The only fee for issuing a colored coins asset is the normal Bitcoin transaction fee. It’s possible that issuers of colored coins could turn to Open Transactions as a low-trust exchange provider in the future.

Images from Shutterstock

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