What Coinprism and Colored Coins brings to cyber•Fund?

Thanks to the Coinprism team for giving us the possibility to write this guest post. We build innovative business in the area of cryptocurrency investments. We continuously explore emerging opportunity to invest, but the most important for us is the technology behind. So we continuously explore tools and protocols.

We love idea that everybody in the world now can start a Bitcoin business with some clicks. That is bigger than Bitcoin.
There is some estimations:

  •  ~$65 bln – capitalization of existing public companies.
  • Huge part of human values is in private companies.

Those who become public get through the hell of listing. That are costs, experience and high input threshold.
More smaller businesses do not think about go public because it is to complicated.
But now that is all in the past.

Issuing shares

Our goal is to build transparent and self-sufficient mechanism of investments in crypto opportunities. So we invest crypto in crypto and exist also only in crypto. First problem that we decide to solve is to issue shares of cyber•Fund to make possible the idea spread the world forming our community. We believe that new generation business is community.

We have two options: start independent POS coin or use some protocol on top of existing infrastructure.
In our case starting independent system is craziness:

  • You need to maintain wallet infrastructure.
  • You need to persuade your users to install your wallet. Don’t forget about managing backups.
    That kills your marketing funnel. I cannot imagine the world there is millions of coins have their own wallet.

Second option is much more easy:

  1. You choose a system.
  2. Issue token and that is it.
  3. You have tools to spread your asset.

That is what we need and, i believe, need 95% of entrepreneurs who are looking for opportunity to join this technological revolution.
There is 6 protocols that allow to do it right now:

Pack of protocols. Every protocol try to solve different problems with different ways. But we need to make the choice. So we define a set of criteria:

  1. We are also users. So usability is critical for us. We want to spend less time making obvious operations.
  2. We want to spend less money for solving our problem.
  3. We want to have audience.

Usability. Coinspark, Master, Next and BitsharesX have only full clients – frankly we stuck from full clients. They are slow and needs to be managed. Counterparty and Coinprism – web based. I personally tried to explain how to use both for friends and partners. Coinprism is much more clear and doesn’t need understanding at all.

Less money. BitsharesX is very expensive. ~15 btc for issuing asset. Next is better. 1000 NXT or ~0.1 btc but still to much. Counterparty and Mastercoin are cheap, but force to buy additional tokens to issue asset. That is more complicated from accounting and transparency point of view. Coinprism is most effective solution with minimal possible cost of issuance.

Audience. I just want to as much people as possible have possibility to buy my shares. That is there Next & BitsharesX loose. To invest to company i need to buy NXT or BTSX and after i will have ability to invest. That is complicated.
Bitcoin active audience is about 2 mln people. So Coinprism and Counterparty win this race. Counterparty have ability to trade and that is huge advantage of platform.

After testing we chose Coinprism for the initial issuance. That is fast and easy. That decision doesn’t limit us. We still have ability to burn some shares and put them to Counterparty (you cannot do it otherwise), Next or wherever we want. But we already have our shares, we already have ability to fund our venture and we already have ability to make deals: bounties, options etc.

Thinking about opportunities

Everything before was a discussion about using cryptotokens as shares. That is the top of the iceberg. Imagine the world where any property could be crypto: educational certificates, loyalty cards, community badges, keys from your home and car. Be sure – anything that you can imagine could be associated with digital property. Google’s Physical web is just one of possible implementation scenarios.

That is area Coinprism beats everybody with one finger. Ultimately cheap and user-friendly. The service already has a clear API and Explorer and could be easily used with any web service or app. For instance, cyber•Fund will use colored coins as tool for issuance of cyber•Pie assets for open-end fund.

There is one big consumer issue here. You can send any colored asset to any bitcoin address, but you do not have assurance that this address is maintained by supported client. There is big chance that recipient destroy it just because he don’t know about bitcoins enough, thinking that Bitcoin address is a magic. Not now. That issue is very important in colored coins adoption.

Providing transparency

We like idea of activity based accounting. In legacy accounting gathering product flows was quite complicated issue. Why? Real money flows are parallel to real business processes. Concept that any account can store any real value – killer feature of crypto economy. That allow to setup accounting system that precisely reflect your business. And you have ability to improve accounting as you go. That is like a magic for our purposes.
Let me show our case.

We issued cyber•Shares. Cyber•Shares account of shares show how many shares need to be distributed.
Shares represent cyber•Fund with all assets in possession.
cyber•Fund assets


  1. Every asset is small or big product with own domain. Every asset can be easily managed:
  2. Product incomes and outcomes goes through Genesis Address.
  3. Product shares could be distributed also.

Economics of cyber•Shares comes from the part of economics of every products.

That is very easy and clear scheme for any investor involved. We believe that this kind of reporting bring us more value.

What features do we need in the Coinprism wallet to make our operation automagicaly more transparent?

  • Address book and Public label for addresses.
  • Transaction message.
  • Copay like Multisig.

Evolution of cyber•Fund you can track in our Blog. Thanks Coinprism for this awesome product.

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