From a conversation in Komodo Discord:
jl777 – I am starting to experiment with CC and see what I can make it do. Not 100% sure yet, but I think I might have written a utxo based assets system. All you can do is create and transfer assets, but it is divisible to the satoshi, whatever amount was used to create it. This is only core level support, so would need to have the asset tx creation made easy, but so far it seems very very extensible. If you have a smart contract use case, plz post here and I will see how much work it would be to implement.
Actually libscott wrote 200 lines of code to implement a basic colored coin implementation and I just morphed it a bit to leverage the built in utxo system. Still need to make the wallet know about asset utxo
blackjok3r – I would love for this to be possible. Me and my friend were discussing a game, where you have items and a crypto to trade said items, being able to transfer items across blockchains would allow that to scale to infinity. The items would be something like cryptokitties, but weapons and armour etc, that you can upgrade, each being totally unique.
jl777 – It costs the native coin to issue the colored coins but you can interpret each satoshi to represent a different amount, ie. change the decimals resolution, so 1 COIN would support 1 million assets with 0.01 resolution (as there are 100 million satoshis in 1.00000000). I would think a dedicated blockchain for a specific game would be able to handle its usage.
blackjok3r – I think that would be fine to really. As the blockchain would really only need transactions for trading or when an item is created/upgraded. Even with millions of users, it would probably handle the load.
jl777 – As it is you should be able to add arbitrary data to the asset creation via opreturn so a game can have some list of characteristics, names, even small graphics encoded into each asset creation. For now an asset is divisible to the satoshi, but I guess if you created it with 0.00000001 native coins, it cant be divided