Inside Look at Bitcoin Cash’s Color Coin Debate: Tokeda or OP_Group?
Andrew Stone, lead developer of Bitcoin Unlimited (BU), published a paper in which he shows and explains that evolution of the original OP_Group proposal. For those who do not know, OP_Group is a single OP_Code that is possible to add it to the Bitcoin Cash (BCH) network. In this way developers are able to create the so known colored coins.
It is important to mention that if the OP_Group protocol was used it would require a protocol change. Miners would validate colored coins among normal transactions.
Andrew Stone’s OP_Group Proposal Paper
In November, there will be a hard fork in the Bitcoin Cash (BCH) network. The team behind Bitcoin ABC revealed a timeline with some goals, including building the 0.18 ABC software and launching the client by October 15. But developers did not give information about what will be included in the upcoming upgrade.
Some days ago, Mr. Stone published a paper with the evolution of the OP_Group proposal. This is an implementation that could add several features including representative tokens. At the moment, the proposal does not have a broad consensus. Other developers have alternative ideas for colored coins and they claim that OP_Group may be risky.
Andrew Stone is convinced that the community should participate in the discussion about colored coins.
Stone explains about this:
“This is the evolution of the original OP_Group proposal – it’s no longer an opcode so name change. The document is a bit long but that’s because it lays out a roadmap to extending the BCH script language to allow some pretty awesome features but at the same time preserving bitcoin script’s efficiency. For example, in the end, I show how you could create a bet with OP_Datasigverify, and then tokenize the outcome of that bet to create a prediction market.”
At the same time, Stone urges people to follow and listen very carefully the discussion, even if users are not interested in tokens.
Bitcoin Cash proponents that do not agree with the OP_Group proposal presented by Stone, favour tokenization ideas that don’t require a change to the BTC codebase. At the same time, some individuals believe that it may be safer to use protocols that work outside the main chain and operate like a side chain.
Another important idea being discussed is the ‘Tokeda,’ which is a token driven metadata proposal that has been written by Joannes Vermorel. Tokeda addresses the challenge of preserving an unbounded amount of metadata without endangering Bitcoin, and the challenge of introducing tokens with Bitcoin.
Tokeda is compatible with stateless wallets – including SPV wallets – and requires no consensus change. Additionally, Tokeda relies on a trust-but-verify security model centred on the issuer. Furthermore, Vermorel says that the BCH community needs to learn from the scaling issues faced by them during this year.
“Whether or not we should change the BCH protocol to add GROUP is a risk/reward question, and matter of opinion.” An important feature of ERC20 coins is that they are easy for anyone to create and issue these tokens.