Lots of talk about the
https://www.coinprism.com/ offering, but something I can't wrap my head around as people are pointing out how this concept might "decentralize" issuance of debt.
In the spec:
The asset address of an asset is the RIPEMD-160 hash of the output script referenced by the first input of the transaction that initially issued that asset. An issuer can reissue more of an already existing asset as long as they retain the private key for that asset address. Assets on two different outputs can only be mixed together if they were issued by the same asset address.
Now in example, say there were 5 "Colored Coin" exchanges and I had an "in-demand" asset, and controlled the private key to said asset. I could go around and issue myself more supply to sell on these exchanges, and the buyers would be none-the-wiser that they were just buying from me.
I mean the concept is great
if you trust the exchange to control the private key (or a 3rd party). But you have to trust a 3rd party! Unless there is a mechanism that limits the future issuance "dilution" if you will of the original asset.
Maybe I'm just misunderstanding? Thoughts?
http://www.reddit.com/r/Bitcoin/comments/25my2d/colored_coins_open_the_doors_to_self_issued/