ColoredCoins, the technology development arm of Colu, has announced a new direction, away from a Bitcoin-only model and towards open-source banking solutions.
“The Bitcoin blockchain is still the biggest and most secure digital currency eco-system in the world and while ColoredCoins always was focused solely on the Bitcoin blockchain in its early days, it has to evolve to stay relevant. All this led us to rebrand and refocus the Colored Coins project from a generic protocol to push meta-data to the Bitcoin blockchain, to a blockchain agnostic framework for digital currencies,” explains Mark Smargon, co-founder and VP blockchain at Colu.
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Colu reveals that it is in the process of open-sourcing its tools and releasing them as a module called the ‘Bankbox’. With it users will be able to provide asset verification credentials, fund a wallet, issue currencies, track the assets, manage distribution, and using the API/SDK they can integrate to their internal systems and create a wallet for the currency.
“The Bankbox allows a new banking model where the custodian handles consumer funds on an external, shared ledger while reducing custodial risk — requiring cryptographic signatures from customers to prevent misuse. Its operations are transparent, with the possibility of being regulated directly on the blockchain by providing cryptographic proofs to the regulator. The Bankbox will provide access to open-source tools that are battle-tested and could dramatically reduce banking IT costs,” explains Smargon.
He explains that they aim to take a step back in the management of the community and invite early stakeholders to take decisions as equal partners in the ColoredCoins blockchain group. Other than Colu, this includes eToro, Bitt and Lykke.
Barbados-based Bitt will be the first deployment of the Bankbox. It will be utilized by Bitt to issue the ‘Barbadian dollar’ using ColoredCoins technology and in partnership with the Barbados central bank.