Virtual currencies circulate primarily within specific platforms and communities and are typically used for gaming, reward points or other virtual economic activities. Their monetary nature is often dependent on the ecosystem of a particular platform, and the value of their existence is determined by the needs of the users and the activity level of the community. Here are some scenarios where virtual currencies are used:

  • Online Game:Used to purchase virtual items or enhance the gaming experience.
  • Loyalty Points:Points as consumer rewards to enhance user stickiness.
  • Content Creation:Used as a transactional tool between creators and users to incentivize independent creativity.

In contrast, cryptocurrency is a globally circulating currency based on blockchain technology with decentralized characteristics. Its security, transparency and traceability make it outstanding in financial transactions, asset transfers and so on. The following are the main application scenarios of cryptocurrency:

  • Cross-border payments:Reduce transaction costs and speed up settlement.
  • Asset management:Serves as a secure investment tool that allows users to digitally manage their assets.
  • Smart Contracts:Ensure transparency and non-tamperability in contract signing and execution.