The coinprism site isnt very helpful.
So how does this work? I send you btc, you send me (presumably) some dust that youve colored. Can i send this dust to an arbitrary address. Can I mix this dust with normal coins? To which address will dividends be paid?
Thanks!
Thanks for the questions, will try to shed some light.
The "dust" in this case would be Bitcoin. The Bitcoin blockchain is used as the mechanism for sending/receiving coins, and the coloring exists as a protocol on top of the blockchain. Coinprism uses the Open Assets protocol for coloring,
https://github.com/OpenAssets/open-assets-protocol/blob/master/specification.mediawiki.
Colored coins must be sent to a wallet that is set up to accept them. From Coinprism, "If you are sending colored coins, please make sure the recipient is expecting them in that address. A colorblind client or wallet could uncolor coins if they perform a transaction on an address that contains colored coins." CP has a forum if you're interested in learning more technical details and/or connecting with other users -
http://forum.coinprism.com/Dividends will be paid to the address from which the Bitcoins were sent. For now, we recommend only sending Bitcoins from a Coinprism wallet. We are manually managing these addresses through spreadsheets with multiple backups, having the blockchain -
https://blockchain.info/address/1LzUY9zPp1iSabwr4aUwUezSGe5aC4Wmhh as an ultimate authority on share amount and receiving address.