Trust Machines Logo

What are Colored Coins?

In the context of Bitcoin, Colored Coins refers to a protocol for issuing and representing unique tokens on the Bitcoin blockchain. The process of creating a Colored Coin involves 'burning' a small amount of Bitcoin by sending it to an unspendable address, and then attaching additional metadata to that specific transaction. This is a concept for generating NFT-like assets only using Bitcoin's programming language, Script.

Share This Article
Builder Tracking Pixel

Related Terms