I'm trying to wrap my head around the Open Assets specification that CoinPrism is using. If I understand it correctly, unlike OBC or POBC ways of doing colored coins, it seems the Bitcoin transaction rules do not actually help do any validation of the transactions. If I have 100 WTK, I can create a transaction which sends 200 WTK and the Bitcoin network will process that just fine, and it would be up to the colored coin software to determine that was invalid, right?
So in the case above, what are the rules about that transaction? Is it just ruled completely invalid? Can I then re-send a transaction for 50 WTK since the previous send will be deemed invalid?
Yes, I had the same questions and I'd like to get this answered too. Are transactions that turn 100 WTK into 200 WTK still mined but deemed invalid according to the open-asset rules (in which case the original 100 WTK still exist somewhere)? Or do they somehow become invalid bitcoin transactions and as such are not even relayed between nodes? I think the answer is the former, but I'm not sure.