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From YouTube: Bisq DAO Basics: Colored Coins
Description
In this video, you will learn about colored coins, specifically the process of creating and destroying them as well as their usage. It serves as background information for the following video on BSQ tokens.
A
Hi,
my
name
is
erina
Soria
and
I'm.
Here
with
manfred
Karev,
we
found
it.
Bisque
bisque
is
a
decentralized
cryptocurrency
exchange.
In
the
previous
video
we
talked
about
Bitcoin
transactions,
which
serves
as
a
good
background
information
for
the
current
topic
for
the
today's
topic,
which
is
colored
coins,
so
Manfred,
what
is
a
colored
coin
and
how
is
it
created?
A
B
A
color
coin
is
basically
technically
it's
the
same
as
Bitcoin.
You
are
just
applying
a
different
context
to
special
transactions,
and
by
that
you
can
apply
different
rules.
You
can
apply
a
different
meaning
to
such
a
bit.
A
special
Bitcoin,
as
we
heard
as
we
discussed
in
the
other
video,
are
the
security
model
for
sending
a
few
hundreds
of
dashi
or
for
sending
a
few
hundred.
Bitcoin
is
the
same.
B
So
you
get
exactly
the
same
security
for
sending
very
tiny
amounts
of
Bitcoin,
and
you
can
use
this
for
riding
on
the
transactional
system
on
this
Secura
transaction
system
of
Bitcoin,
for
using
it
for
transferring
different
type
of
value,
not
their
monetary
Bitcoin.
Well,
you,
but
maybe
something
like
a
share
like
a
physical
asset,
whatever
you
want
to
create
an
alternative
currency,
and
it's
very
all
concept.
B
Well,
say:
okay,
I
put
in
here,
I
used
some
Bitcoin,
whatever
one
Bitcoin
as
input
and
send
out
a
hundred
different
outputs
to
maybe
their
contributors
in
a
project
like
we
do
is
be
as
few
so:
the
bisque
vsq
or
Genesis
transaction.
It
use
two
and
a
half
Bitcoin
from
what
we
received
on
our
donation
address
as
the
input,
and
we
are
distributing
that
to
all
the
past
contributors.
So
we
are
creating
just
a
normal
Bitcoin
transaction
and
we
are
defining
our
context
in
the
vsq
system.
B
This
transaction
is
our
genesis
transaction
and
all
this
outputs
are
well,
it
B
is
Q.
Technically
they
are
Bitcoin,
but
all
the
stakeholders
of
PS
q
and
the
contributors
are
interpreting
this
satoshis
as
PS
q
and
the
monetary
value
of
this
BS
q
have
to
be
a
should.
Be
higher
like
the
underlying
Bitcoin,
where
it
cannot
be
lower
because
you
still
can
use
it
as
Bitcoin.
So
when
you
receive
some
beers
Q
from
this
Genesis
transaction,
it's
something
like
R,
0.01
Bitcoin
as
a
bit
cumberly.
B
It
can
never
be
lower
like
this
Bitcoin
value,
but
we
can
say
R
yeah.
We
can
define
what's
the
unit
for
this
color
coin
and
in
the
case
of
PS
q,
it's
100
Satoshi
is
one
PS
q
and
whatever
will
be
the
market
value
of
one
PS
q.
Let's
assume
it's
something
like
one
dollar,
then
are
this
100
Satoshi
are
in
Bitcoin
value
is
much
much
lower
like
one
dollar,
so
we
can
transfer.
B
A
So
just
just
to
maybe
it
would
be
good
idea
to
talk
about
card
coins
in
general
and
just
to
go
back
to
the
to
the
question
if
I
understood,
I,
understand
you
correctly
so
colored
corn
is
typical
is
an
ordinary
Bitcoin
transaction,
but
it
has
some
extra
context
that
specifies
that
specify
certain
features
about
that
transaction
and
that
context.
Where
is
it?
Where
is
that
information?
Is
it
on
the
Bitcoin
blockchain
or
is
it
on
the
somewhere
else,
for
instance,
as
I
mentioned
in
this
queue?
In
the
case,
the
biscuits
somewhere
outside
the
complexion
yeah.
B
It's
basically
it's
it's
outside,
so
it's
those
who
are
using
this
color
coins.
They
are
agreeing
to
a
certain
new
rule
set
which
is
on
top
of
the
Bitcoin
rule
set.
So
we
cannot
create
an
invalid
it
con
transaction.
We
cannot
spend
more
output
like
we
use
as
input,
for
instance,
that
would
be
invalid
as
well
as
a
color
coin.
It
has
to
be
at
least
a
really
Bitcoin
transaction,
but
on
top
of
that
we
can
apply
different
rules
like,
for
instance,
egg.
B
B
A
lot
of
extra
data
on
the
Bitcoin
blockchain-
that
was
a
lot
of
controversial
discussions
about
this
I
yeah
I,
want
to
focus
on
this
very
simple
and
very
basic
concept
that
you're
only
following
the
transaction
outputs
to
a
Genesis
transaction.
This
is
the
basic
room
for
a
color
coin,
because
that's
also
what
we
use
in
vsq
and
which
is
much
more
robust
and
we
are
not
using
their
data
storage
capability
of
Bitcoin
and
avoiding
this
controversial
discussion
so.
B
A
B
Just
that
a
completely
normal
transaction-
and
it's
just
be
defined
in
this
new
context.
Like
look,
we
say:
okay,
we
agree
that
we
want
to
create
and
we
are
basically
using
this
special
color
coin
and
we
agree
on
a
new
rule
set
and
the
Barrett
basic
rule
set
is
to
have
the
origin
in
this
Genesis
transaction.
That's
already
enough.
Basically
to
have
the
color
coin
system,
then
we
say
all
the
outputs
of
this
transactions
are
color
coins.
B
We
are
following
the
outputs
and
I
think
it's
a
little
bit
more
complex,
because
there
are
a
little
bit
problems
by
implementing
it,
but
from
conceptually
it's
basically
enough
to
say
that's
or
everything
else
is
normal,
but
kernel.
The
only
additional
rule
is.
It
has
to
have
an
origin
in
the
Genesis
transaction
and
it's
considered
as
this
special
color
coin,
what
we
define
and.
A
B
Is
basically
in
your
software,
what
you're
building
on
top
of
this
color
coin,
the
wallets
whatever
it
will
contain
this
extra
rule?
It's
not
part
of
the
Bitcoin
system.
Bitcoin
doesn't
know
about
the
color
coins.
Basically,
are
they
they
are
we
yeah.
We
have
piggybacking
on
on
top
of
the
Bitcoin
transaction
system
and
we
are
additionally
applying
some
different
contextual
rules
set,
which
is
only
well
it
in
our
group
in
our
system,
and
only
if
those
people
who
are
using
the
color
coin
are
accepting
and
following
these
rules,
then
we
are
they
agreeing
to
it.
B
A
B
So
like
in
this
example,
when
we
say
all
the
outputs
of
the
chances
are
color
coins,
our
type
was
a
color
coin
is
a
general
term,
but
let's
say
it's
there,
whatever
the
Aruna
coin
and
are
all
yeah.
When
you
sent
me
from
this
Genesis
some
Aruna
coins
and
I
send
it
to
somebody
else,
and
this
other
person
is
then
the
owner
of
the
Runa
coins
and
I
when
I
have
spent
it
on
lockdown
anymore.
It's
just
exactly
the
same
transactional
route
like
in
Bitcoin.
You
are
by
creating
a
new
transaction.
B
B
It
only
makes
sense
when
the
value
of
this-
or
let's
say
that
way,
we
are
using
very
tiny
amounts
for
this
color
coin
units,
because
otherwise
it
becomes
very
expensive.
This
is
when
we
would
say
we
we
are
sending
her
some
unit,
which
has
a
real
life
value
of
$1,
and
we
are
using
one
the
unit
of
long
bit
friend
and
it
becomes
super
expensive
to
send
one.
The
unit
of
$1
to
somebody
else
I
need
to
take
one
Bitcoin
as
criteria
so
we're
doing
the
opposite.
B
We
are
taking
a
very,
very
tiny
amount
of
Bitcoin.
Let's
say
we
are
using
thousands
of
tashi
as
the
unit
for
one
color
coin
of
one.
One
aruna
coin
is
represented
as
one
thousand
Satoshi
and
I
can
send
to
somebody
else.
One
thousand
Satoshi
and
it
costs
me
some
Bitcoin
I
need
to
have
this
Bitcoin
for
sending
this,
but
1000
Satoshi.
It's
something
like
0.01
dollar
cent.
B
Really
nothing,
but
maybe
a
runic
coin
is
the
value
of
one
gram
of
gold
or
whatever
we
attach
as
a
value
it
it's
a
share
of
the
company
or
whatever.
So
it
has
to
be
at
least
higher
like
this
underlying
Bitcoin
value.
Otherwise
it
doesn't
make
sense,
and
then
we
are
yeah.
We
are
taking
the
Bitcoin
system
as
transactional
to
and
for
transferring
an
asset
which
has
a
higher
value
as
this
underlying.
B
Well
you-
and
it's
not
so
different
to
the
normal
paper
money.
When
you
have
a
paper
bill,
it
has
some
physical
value.
The
paper
itself
has
some
value
and
it
costs
something
to
print
this
money
and,
like
we
see
in
Venezuela,
people
are
using
another.
There
are
Venezuela
Venezuelan
bills
for
for
making
closes
and
backpacks
because
yeah,
it
still
has
it's
a
good
quality.
The
paper
and
the
value
of
the
paper
is
higher,
like
the
nominal
value
of
the
money,
because
it
crashed
too
badly.
B
A
B
The
basic
contributions
that
you
use
or
an
existing
blockchain
are
and
piggybacking
on
this
transaction
system
for
representing
something
different
like
their
original
unit
like
the
Bitcoin
and
you
can
yeah,
you
could
I
mean
people
wanted
to
issue
gold
or
units
of
gold
there
or
shares,
or
whatever
and
I
mean
there
are
a
few
color
queen
projects
which
got
successful
like
counterparty
or
master
coin,
which
is
today
only
as
a
theater
for
instances
is
using
only
and
those
are
the
more
complex
systems.
They
are
not
just
very
simple.
B
A
B
Like
when
you
create
a
new
coin
or
a
new,
basically
you
are
defining
the
roots
and
people
who
are
using.
It
are
agreeing
to
these
rules,
so
it's
not
really
defined
in
the
genesis.
It's
just
the
software,
what
they
are
using.
They
in
the
software.
It's
basically
hard-coded
like
in
the
Bitcoin
software
hard-coded
that
there
is
this
Genesis
transaction
from
Satoshi
and
everybody
who
used
Bitcoin
agreed
to
this
and
it's
an
arbitrary
rule.
B
So
though
she
said,
okay,
that's
the
first
transaction
and
yeah,
that's
the
basic
rule
and
with
creating
a
new
color
coin,
you
were
basically
creating
this
Genesis
transaction
defining
this
rule.
But
it's
not
a
part
in
there.
Usually
it's
not
there
and
code
I
mean
you
can,
on
top
of
them,
you
can
use
up
return
or
some
extra
rules
and
and
try
to
encode
some
additional
roots
directly
in
the
blockchain,
but
that's
all
that's
optional
and
not
really
required
for
the
basic
or
very
primitive
and
very
true
a
system
yeah.
B
B
So
usually,
when
you
are
not
following
the
rules
correctly-
and
that
becomes
already
now
a
little
bit
more
complicated
because
for
sending
some
Bitcoin
to
somebody
else,
you
need
also
a
mining
C
without
paying
a
miner
feel
it
will
not
be
mined
and
will
not
be
confirmed,
and
that
is
a
good
block.
But
you
don't
want
to
play
the
mining
fee
with
your
color
coins,
because
the
color
coins,
as
we
said
they
have
much
more
value.
B
So
when
you
have
to
pay
whatever
10,000
Satoshi
a
for
the
miner,
you
don't
want
to
take
your
aruna
coin,
because
maybe
one
aruna
Cohen
has
the
value
of
$1,000
and
you
don't
want
to
spend
$10,000
on
mining
field.
So
you
need
to
put
use
some
Bitcoin,
so
normal
Bitcoin
not
colored
coins,
additionally,
as
input
and
use
that
for
paying
the
mining
fee,
and
then
you
get
the
change
output
and
you
need
to
manage
this
entire
and
define
the
rules
that
you
can
verify
that
are
when
you
have
such
a
color
coin
transaction.
B
You
have,
for
instance,
two
inputs.
One
input
is
a
Runa
coin
from
some
other
which
has
origin
in
the
runer
genesis
transaction
and
the
other
input
is
a
normal
Bitcoin
from
your
normal
Bitcoin
wallet
and
then
the
output
is,
you
are
sending
me
or
whatever
500
no
coins-
that's
maybe
50,000
so
5,000
Satoshi
and
you
get
maybe
some
change
output
back
because
you
had
a
bigger
input
and
you
have
to
pay
the
mining
fee
and
for
a
Bitcoin.
What
you
use,
you
also
usually
don't
have
exactly
the
amount.
B
What
you
need
to
pay,
so
you
have
you
put
in
a
bigger
amount
of
Bitcoin
and
you
get
the
change
output.
So
in
such
a
transaction
you
would
have
one
output,
where
you
send
me
to
five
thousand
or
Satoshi
as
a
runa
coin,
then
you
have
another
change
output
to
yourself.
Let's
say
it's:
fifteen
thousand
Satoshi,
which
goes
back
to
yourself
to
address
of
yourself,
and
then
you
have
to
change
output
for
the
Bitcoin,
which
is
the
leftover
from
the
mining
field.
B
Everything
is
fine.
Bitcoin
doesn't
distinguish
that
one
input
was
a
color
coin
and
the
other
input
was
a
Bitcoin
and
that
you
have
to
take
care
that
their
output
of
the
color
coins
is
not
higher
like
the
input
of
their
color
coins.
So
this
additional
complexity
and
and
rules
which
are
part
and
only
of
the
color
coin
system.
B
Bitcoin
is
completely
blind,
doesn't
know
about
this,
but
when
you
would
create
a
normal
Bitcoin
transaction
which
breaks
the
rule
of
the
color
coin,
but
it's
still
a
very
big
con
transaction,
then
you
are
basically
destroying
your
colored
coin
and
you're
burning
it
in
a
way
or
do
they
become
uncoloured,
they
become
naked
Bitcoin
again
so
I
can
still
spend
the
$30,000.
You
can
spend
a
30
thousand
Satoshi
or
whoever
received
this,
but
it's
instead
of
maybe
$30,000
it's
just
whatever
0.03
dollar
ascent.
So
it
you
lost
a
lot
of
value.
So.
B
B
But
technically
I
could
do
this,
but
there's
no
motivation
that
I
do
this
I
want
to
keep
it
in
our
own,
a
coins
and
by
uncovering
by
destroying
it
when
I
make
a
transaction
which
invalidates
this
Aruna
coins,
then
yeah
I'm
back
to
the
Bitcoin
value
and
this
money,
basically,
which
has
you,
have
put
in
an
input
of
$30,000
when
we
assume
that
that
the
value
of
this
aruna
coins
are
and
the
output
is
basically
only
Bitcoin
and
has
very
tiny
Satoshi
values.
So.
B
There
are
depends
on
the
color
coin
system,
but
you
can,
for
instance,
define
like
in
a
Bitcoin
system,
with
every
new
block
new
Pitkin
gets
created
in
the
Bitcoin
system,
decorated
out
of
thin
air
in
the
color
coin
system.
You
cannot
create
new.
We
are
new
coins
out
of
thin
air,
because
then
it
would
be
invalid
Bitcoin,
but
you
can
use
some
Bitcoin
input
and
can
define
that
is
a
new
Genesis
transaction.
B
So
there
is
no
need
to
say:
there's
only
one
Genesis
transaction,
you
can
say:
okay,
that's
one
basic
Genesis
transaction
like
in
Bitcoin,
but
then
there
are
new
issuance
transactions
like
in
Bitcoin
der
every
block,
the
block
reward
to
the
and
in
the
color
coin
system.
You
can
do
the
same.
You
can
say
whatever
for
distant
is
event.
What
happened
in
our
sub
system
are
yeah.
B
A
B
Again,
it's
a
completely
southern
system
to
the
Bitcoin
Bitcoin
doesn't
know
about
that.
This
is
an
issuance
transaction
or
Genesis
transaction.
So
bitcoin
is
just
a
normal
bit
con
transaction.
So
when
you
are
creating
a
issuance
transaction
for
your
color
coin,
then
the
users
who
are
using
your
color
coin
in
that
software
there
need
to
be
some
rules
and
some
validation
for
this
or
and
that's
arbitrary
rules
that
you
are
defining
as
the
creator
of
your
color
coin,
you're,
defining
these
rules
and
the
people
who
are
using
it
they're
following
these
rules.
B
It's
a
little
bit
different
because
you
said
you
cannot
create
coins
out
of
thin
air,
that's
possibly
in
Bitcoin,
but
because
we
are
riding
on
top
of
Bitcoin.
You
cannot
make
a
transaction
where
you
have
no
input
for
this
transaction,
so
you
always
need
to.
When
you
are
the
issuer.
Let's
say
there
are
some
special
rules
and
you
have
yeah,
you
have
done
some
stuff
and
then
the
other
can
validate
that.
B
Let's
say
you
have
the
right
to
create
new
thousand
aruna
coins
and
to
create
this
transaction.
You
need
to
fund
it
with
some
bitcoins
because
at
the
end,
it's
a
bit
conference
action
and
that's
a
little
bit
a
difficult
thing
to
understand
that
you
create
the
Bitcoin
transaction,
where
you,
let's
say
rune.
The
coin
is
1000
Satoshi
to
create
1000
aruna
coin:
it's
1
million
Satoshi.
B
So
you
take
from
your
Bitcoin
wallet
1
millions
of
dosha,
which
is
something
like
whatever
$1
to
$10
and
put
it
in
put
in
this
transaction,
and
the
output
are
aruna
coins
in
your
system.
Only
when
you,
when,
when
it,
when
you
have
fulfilled
these
rules,
which
will
be
validated
by
this
subsystem
of
the
runer
coin
uses,
and
by
that
you
are
basically
like
the
central
bank,
you
are
printing
new
money.
You
have
to
pay
for
some
basic
costs,
like
the
central
bank
have
to
pay
for
the
paper
of
their
bills
of
the
dollar
bills.
B
It
cost
some
money
to
print
a
dollar
bill,
but
their
printing
costs
are
much
lower,
like
their
nominal
cost
of
the
dollar
bill.
And
then
you
can
issue
this
and
the
people
who
are
receiving
this
they're
just
taking
it
as
a
as
a
new
unit
of
a
curve
of
a
value
and
using
the
Bitcoin
system
for
transferring
it.
So.
B
You
are
paying
the
employees
in
that
way
that
you
say:
okay,
when
you
have
done
this
and
this
work,
and
we
have
whatever
rules
to
verify
this.
And
then
you
have
the
right
to
issue
your
payment
to
yourself
and
you
print
whatever
$10,000
in
the
equivalent
value
for
your
work
and
you
get
the
reward
and
get
the
motivation
to
go
on
working
for
the
project.
Great.
B
Not
the
super
specialist
on
colored
coin,
sir,
from
all
this
detailed
implementations
like
Kulu
Oh,
Louisa
Hulu,
is
another
pic
calico
in
Project
counterparty
and
Omni
or
masculine
or
another,
and
mainly
they
were
used
for
issuing
assets
like,
for
instance,
a
gold
coin
or
share
the
company
or
just
another
cryptocurrency
law,
or
at
like
on
counterparty.
There
was
this:
what
was
the
name.
B
Pipa
coin
was
a
paper
Queen
where
you
produce
a
piece
of
art
or
whatever
some
images,
and
you
are
defining
how
much
images
exist.
You
can
define
okay,
there
are
10,000
copies
of
this
image
and
then
it's
like
on
an
art
market.
You
can
sell
your
image
to
somebody
else
and
they
can
speculate
based
on
that.
B
That
was
quite
popular
and
it
here
and
they
did
something
similar,
but
a
little
bit
more
stupid
with
cryptic
ideas
or
you
can
do
all
kind
of
stuff
and
I
mean
a
reason
why
colorpoint
doesn't
have
a
very
good
reputation
beside
the
reason
that
they
abuse
the
blockchain
space
for
storing
that
date
and
have
been
many
Bitcoin
developers.
Who
said,
that's
very
that's,
basically
a
abuse
of
the
of
the
data,
because
everybody
else
need
to
store
this
date
and
yeah.
B
That
has
some
issues
but
beside
that
another
yeah
to
create
something
like
crypto
kiddies,
doesn't
give
her
a
great
reputation
to
this
to
the
underlying
system.
So
I
mean.
Maybe
people
make
jokes
about
that
area
because
cryptic
it
is
this
topic
and
the
same
happened
probably
on
the
Bitcoin
side,
with
as
many
accounts
about
there
are.
Millions
of
tokens
and
99.99%
are
completely
crap
and
stupid
and
has
no
real
life
value
and
there
have
not
been
really
many
successful
projects
which
are
really
interesting
or
whatever,
and
but
that's
not
that's
up.
B
A
A
B
Ahead,
yeah
usually
have
a
centralization
issue,
because
you
have
a
new
issuing
go
coin
yeah.
Who
is
controlling
that?
You
really
have
two
gold
and
at
the
end,
it
doesn't
really
work
very
well
in
a
relative,
centralized
system
when
you
want
to
connect
it
with
physical
assets
and
so
on.
So
it's
very
hard
problems
to
solve
those
people.
You
can
already,
probably
just
do
it
in
a
shady
way
or
in
a
in
a
stupid
way
at
the
end,
and
that's
probably
one
reason
why
I
collect
coins.
B
A
B
There
is
one
kind
of
like
recommended
way
to
store
extra
data
in
the
blockchain
so
like
time
same
thing
like
we
explained
in
the
other
video
when
you
want
to
put
or
prove
that
something
has
happened
at
a
certain
time,
you
can
make
a
head.
You
can
put
a
20
by
cash
into
the
blockchain,
and
with
that
you
have
this
proof,
that's
very
powerful
and
many
Bitcoin
developers,
like
Peter
talked
he
has
implemented
his
own
open,
timestamp
system.
B
So
there's
a
lot
of
support
for
such
system
because
they
are
very
powerful
and
not
creating
a
lot
of
damage.
20
bytes
is
really
very
little
data
and
but
the
color
coin
systems
which
are
more
complex.
They
which
implement
their
own
transactional
system.
They
need
much
more
data
space.
They
cannot
sorta
state
their
as
this
operation
is
very
limited.
It's
only
80
bytes
what
you
can
store
there
and
they
required
much
more
data
and
they
did
it
in
other
ways
you
can
yeah
you
can
make.
B
You
can
trick
the
system
in
a
way
that
you
store
some
data
like
in
myristic
transactions
and
yeah.
You
can.
You
can
abuse
the
system
in
a
way
that
you
are
storing
your
encoding,
some
data
and
the
blockchain
and
are
every
every
node.
Every
full
node
has
to
store
this
data
forever
and
that's
a
burden
on
somebody.
It's
externalizing
the
costs
which
has
a
benefit
for
your
system,
but
you
externalizing
it
to
everybody
and
something
like
the
crypt
loop.
B
It
is,
they
will
be
stored
forever
and
if
you're
in
blockchain
and
and
nobody
needs
it-
and
many
people
are
not
interested
at
all
in
this-
and
they
want
me
to
run
the
full
note.
You
are
you're
paying
the
costs
at
the
end.
For
this,
so
that's
a
mean
problem
and
the
only
kind
of
like
acceptable
compromises
to
use
operator
and
for
this
they
are
also
treated
in
the
transactional
system
of
Bitcoin,
in
a
way
that
they
are
not
creating
a
lot
of
burden.
B
They
are
still
stored
as
data,
but
they
are
ignored
for
validating
and
many
other
things.
It's
a
little
bit
more
complex
to
go
into
details
of
this,
but
that's
basically
the
like
recommended
way
to
do
it,
which
is
acceptable.
There
are
some
hardcore
people
who
even
don't
like
this,
but
Satoshi
atleast
were
supporting
something
like
this,
because
he
was
very
interested
in
smart
contracts
and
you
cannot
build
more
complex,
smart
contracts
stuff
without
extending.
There
exists,
no
existing
script
system
and
using
something
like
top
return
for
building.
On
top
of
this.
A
B
B
Esq
is
a
color
coin
on
Bitcoin,
so
technically
it's
just
Bitcoin
and
it's
different
to
the
other
color
coin
concept,
in
a
way
that
it's
even
more
simple
and
reduced
like
the
first
color
coin
concept.
The
very
first
were
based
on
this
just
following
the
transaction.
Outputs
and
the
basic
rule
is
that
a
coin
has
to
have
an
origin
in
a
Genesis
transaction.
So
we
are
not
using
data
on
the
blockchain
to
encode
our
transaction
rules.
The
transaction
rules
are
implemented
in
every
bisque
application
and
executed
and
validated
there.
B
The
Bitcoin
full
notes
they
for
them.
It's
just
a
naked
Bitcoin
transaction.
The
only
thing
what
we
are
using
is
opportunity
for
more
complex
stuff,
but
for
a
very
basic
transaction.
We
also
don't
need
to
up
return,
but
for
the
more
complex
stuff
like
walking
and
issuing
coins
are
we
need
to
up
return,
but
also
they
are.
We
are
using
it
only
for
time,
stamping,
basically
for
putting
in
a
hash.
B
This
more
complex
system
as
also
security
issues,
because
it's
it's
more
vulnerable
to
bugs
and
problems
when
you
build
a
basically
a
new
transaction
system
on
top
of
Bitcoin
and
use
Bitcoin
only
as
carrier
for
the
data
state,
the
storage
at
the
end
are
yeah,
that's
basically
different
to
the
existing
systems
and
the
main
motivation,
but
I
didn't
want
to
build
on
top
of
them
was
because
they
didn't
support
all
the
features.
What
we
require
and
the
main
feature
was
to
have
a
decentralized
issuance
model
and
count
about
different
sense.
B
You
cannot
build
a
system
that
all
the
count
about
the
nodes
are
verifying
some
special
rules
that
gives
you
as
a
contributing
biskits
authority,
to
issue
to
yourself
new
tokens
that
you
are
paying
yourself
basically
like
a
mining
Bitcoin
that
was
not
possible
there,
and
that
was
the
main
requirement
for
the
psq
system.
Another
problem
was
that
most
of
those
I
didn't
want
to
rely
on
third
party
technology
and
companies,
often
like
Hulu
and
Master
Queen,
has
a
very
shady,
very
negative,
reputation.
History.
B
It
was
not
worried
yeah,
it
was
not
very
it
didn't,
really
carry
it
away
of
a
very
PR
driven,
very
marketing
treatment.
It
didn't
never
liked
it.
So
that
was
the
main
reason
why
we
implemented
our
own
system
and
to
have
it
also
in
our
control
and
define
our
own
rules
and
be
more
flexible
by
that,
and
we
have
our
own
peer-to-peer
system.
We
have
our
own
application
or
their
bisque
application
can
do
all
this
verification,
and
maybe.
B
B
A
to
cool
is
the
leader
of
developing
and
implementing
this
I
think
it's
still
very
early
stages,
so
I'm
not
sure,
but
that
might
bring
a
revival
in
the
idea
of
color
coins
and
maybe
in
some
day,
when
it's
successful
and
when
it's
well
implemented
and
robust,
we
would
would
consider
to
move
over
to
this
system.
I
think
it
will
have
probably
some
advantages
over
the
current
systems
and
ideas
up
there.
So
I
guess
ill
people
who
try
to
here.
B
A
So
then,
maybe
I
will
try
to
summarize
the
main
points
of
the
card
coin,
and
then
you
can
add
anything
that
I
may
have
missed.
So
a
colored
coin
is
basically
an
ordinary
Bitcoin
transaction
output
that
has
extra
rules
that
are
outside
the
Bitcoin
blockchain,
and
so,
apart
from
the
Bitcoin
transaction
rules
that
it
needs
to
follow,
it
also
needs
to
follow
the
specific
rules
that
are
related
to
it.
A
B
Think
from
my
side,
we
covered
probably
everything
and
maybe
going
more
details
and
when
we
talk
about
the
bsq
token
as
one
example
of
hair,
calico
and
implementation,
of
course,
everything
which
I
explained
here
is
a
little
bit
with
the
background
of
psq,
as
we
say,
entrance
action,
it's
not
so
typical
in
our
color
coin
concepts
and
it's
arbitrary
as
there
when
somebody
has
a
new
idea
and
do
whatever
it's.
Basically,
you
are
as
a
creator
of
the
color
coin.