Colored Coins - How does it work and are they transferrable? Will Newbalance be locking up the coins they color for thier product?

Not a noob here, but I still have a hard time understanding how a coin is colored, and really my question is are the colored coins transferrable?
Lately, Newbalance has adopted a product verification on the Cardano blockchain through utilizing Colored coins, which raises an interesting question for me: are these particularly colored coins transferrable? If the answer is no does that mean these coins are essentially locked up for years to come?
If the answer is yes does that mean you could already be holding a colored coin in your wallet? And if so does that prevent you from coloring the coin that is in your possession or is it possible to color on top of already colored coins, and further… if they are transferrable is it possible you hold a few lovelaces in your wallet that are colored as fractions must be considered in the transaction process?
Continuing: if coloring means the coin now has more information attached to it than just being 1 ada does it take more processing power to transfer it (if transferrable) and if so is coloring a good idea?
If you accept a transaction of Ada that is bloated with colored ada then is the transaction fee you pay to transfer it from your wallet going to hurt your bottom line? Hmmm some thought, need insight on colored coins, more information on top of a coin means more work to process that info in my mind.
Any feedback would be much appreciated if you have some good explanation in layman terms on how this coloring of ada will affect the cardano process please weigh in.
tia! :sunglasses:


@anon20038177 I too would like to be more informed on this. I’ve asked several times if someone can just show us a New Balance address on the chain.

I feel like a simple link to the block explorer would clear up so much.

Good question.

I have copied your questions to people who should be able to answer this. Standby

1 Like


Unlikely, but you would need special software to examine the UTXO sets in your wallets to know for sure.

UTXO selection process and transaction formation is done by your wallet software.

This is why Cardano aims to separate the financial layer from the smart contract layer.

Since there is more data, although it is a small amount of data, there should be slight increase in cost to record that information to the network.


So, if a block is a collection of transactions, which are collectively hashed to chain to the next block and a transaction contains a timestamp, input, output and amount, where does the “colour” information live? Is it another field or part of an existing field?

Is there any documentation anywhere that shows the schema of a Cardano transaction?

1 Like

Yes! Good reminder @oldcryptogeek

Good answers thank you!