Smart Property, Colored Coins and Mastercoin

Cryptoledgers, such as those utilized in cryptocurrencies like bitcoin and litecoin, have the ability to be employed in other capacities. They are not merely one-dimensional, one-trick ponies relegated to simple fiat-only exchanges.

For example, last week Kyle Torpeypublished an overview of several upcoming projects that utilize the Bitcoin block chain to provide new features and financial instruments for users globally.

While it is uncertain that any or all will be successful in accomplishing their goals, these new innovations, like Namecoin before them, show that cryptoledgers can be integrated to provide rich functionality beyond the current token system.

For those unfamiliar with Namecoin, it currently acts as a decentralized DNS system that makes domain name censorship difficult, if not impossible. It was created in 2010 as a modified version of Bitcoin, and in 2011 the mining of Namecoins (after block 19,200) was effectively merged with Bitcoin through a software update (eg pools had to use a new software release).