Colored coins are somewhat different from traditional cryptocurrencies, even though they share a lot of the same features as well. Color coins are often referred to bitcoin 2.0 protocol-based currencies that allow for the creation of digital assets on top of the bitcoin blockchain. More importantly, this allows creators of these coins to extend the functionality of their creation well beyond that of a mere currency. Below are some of the top colored coins-based projects currently in development.

#4 VotoSocial

The VotoSocial project is quite an intriguing one, although the idea is not entirely new. The team behind Votosocial acknowledges the way we conduct elections will need to change to a more decentralized approach. By creating an open and auditable platform for electronic voting, as well as issuing their own colored coins, the team wants to create a voting system everyone can trust.

#3 DXMarkets

It has to be said, the plan laid out by DXMarkets is quite an ambitious one. Not only is the team focusing on revamping capital markets, but they are planning to launch different projects over the coming years. By focusing on payment systems, smart contracts, digital assets, and the secondary market industry, DXMarkets is poised to create a growing list of use cases for their colored coins.

As one would come to expect from a colored coins projects, it is all about adding more benefits to the color coin than just using as a currency. Generating new revenue streams, bringing new features and products to clients, and implementing the concept into different business solutions are the primary objectives of this project. With offices spread out across three major cities, DXMarkets is a project worth keeping an eye on.

#2 Warranteer

Colored coins play a big role in creating a more convenient business model for both service providers and clients. Warranteer is a platform that wants to make it easier to add and manage existing warranties. By using bitcoin’s 2.0 blockchain technology, the project provides full transparency, accountability, and a tamper-proof solution. Users can scan barcodes and product receipts and have them linked to their profile immediately.

#1 Mycelium

Even though most people know Mycelium as one of the most popular bitcoin wallet solutions, the project’s developers are venturing into the world of colored coins as well. A crowdsale for this project was hosted a few months ago, allowing bitcoin users to invest in these new Mycelium Tokens. Every digital asset represents partial ownership of the wallet part of the team’s business. As a result of this crowdsale, the Mycelium team raised 5,000 BTC.

For the time being, there is no clear use case for the Mycelium colored coins just yet. The wallet developers are working on an updated client, which will allow users to trade the colored coins within the wallet itself. No dividends are being paid out to colored coin holders either, although things may change over the next few months. It will be interesting if Mycelium can elevate the status of colored coins as a viable technology for digital sets moving forward.  

If you liked this article, follow us on Twitter @themerklenews and make sure to subscribe to our newsletter to receive the latest bitcoin, cryptocurrency, and technology news.